New Delhi, Oct. 16 -- If you have taken a gold loan and missed EMI payments, you may be worried about losing your pledged jewellery. However, missing an EMI does not automatically mean your gold will be auctioned.

The risk depends on the loan agreement, the extent of default, and the lender's recovery policy. Here is what borrowers need to know.

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Niyati Merchant, Associate Partner at MDP Legal, Advocates & Solicitors, said RBI does not prescribe a universal threshold such as two, three or six missed EMIs before pledged gold can be auctioned.

She added that "The principal regulatory framework is the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025, issued on 6 June 2025 and amended on 29 September ...