Terms & Conditions
Effective Date: June 2026
1. About Loan Bandh
Loan Bandh is a gold asset purchase platform that helps individuals close their outstanding pledged gold loans by purchasing their pledged gold jewellery. Loan Bandh is not a lender, financier, bank, or Non-Banking Financial Company (NBFC), and does not offer credit, loans, or any financial products.
Loan Bandh acts solely as a buyer of pledged gold jewellery from customers who wish to settle and close their existing gold loans held with banks, NBFCs, or other financial institutions. The transaction is a purchase of gold jewellery, not a lending arrangement.
2. Advance Payment for Pledge Release
Loan Bandh reserves all rights to verify the pledge information submitted by the customer. If the information is found to be false or misleading, Loan Bandh may share the information with the concerned government authorities.
For pledge gold release, if the value of the gold jewellery is found to be less than the advance amount paid by Loan Bandh to the pledging financial institution on behalf of the customer, the customer shall be responsible for making immediate payment of the difference amount to Loan Bandh.
If the customer changes their mind about selling after the pledge has been released from the financier, or fails to release the pledged gold, the customer shall be liable to reimburse the total advance amount paid by Loan Bandh to the financier.
Any failure by the customer to reimburse the advance payment made to the financier on their behalf shall entitle Loan Bandh to treat the transaction as a completed sale and take physical possession of the gold jewellery accordingly.
If the gold is not released from the financier and the customer fails to refund the advance amount received, Loan Bandh is entitled to present any security instrument (such as a cheque) received as a security deposit. In the event of dishonour, Loan Bandh may initiate legal proceedings under the Negotiable Instruments Act and other applicable provisions of law.
All disputes arising from this transaction shall be settled by binding arbitration within the jurisdiction of [City, State].
3. Terms for Purchase of Pledged Gold Jewellery
Loan Bandh will only purchase gold jewellery that is exclusively owned by the Seller. The Seller undertakes that the gold jewellery was acquired through purchase, gift, or inheritance and that they have sole and unencumbered authority to sell the same, subject only to the existing pledge with the financier.
Loan Bandh will not return gold jewellery once purchased, under any circumstances. Once the purchase is concluded, payment will be made in Indian Rupees directly to the bank account of the Seller.
Loan Bandh reserves the right to accept or reject any offer for purchase of gold jewellery without providing any explanation or justification.
Upon purchase, Loan Bandh acquires absolute right to sell, transfer, assign, or melt the purchased gold jewellery and shall be at liberty to deal with it in any manner it deems fit.
Loan Bandh shall not be held responsible if the Seller uses the sale proceeds for any illegal, anti-national, criminal, or anti-social purposes.
In case the sold gold jewellery is found to be stolen, counterfeit, or otherwise encumbered beyond the declared pledge, the Seller or their legal representative shall be solely responsible for all consequences, including criminal and legal liability, losses, damages, and repayment of the entire amount with interest and compensation to Loan Bandh, including legal costs.
Loan Bandh reserves all rights to verify the pledge information submitted by the Seller. If the information is found to be false or misleading, Loan Bandh may share such information with the concerned government or statutory authorities.
Loan Bandh uses industry-standard XRF technology and/or other recognised purity-checking methods to ascertain the purity of gold jewellery offered for sale by an authorised valuator. Purity readings may differ based on the examination methodology used.
Loan Bandh shall not be responsible for the loss of purity or weight after melting. The Seller shall bear all losses as well as applicable transaction charges.
Loan Bandh shall not be responsible for returning items in the same shape and size after melting.
Loan Bandh may also use other examination procedures such as acid tests, salt tests, or other prevailing assay methods to confirm purity if required.
Loan Bandh shall deduct the weight of any material other than gold before arriving at the actual payable weight.
Loan Bandh reserves the right to conduct physical or telephonic verification to establish the credibility and ownership of the gold jewellery.
The purchase value will be based on the prevailing market price of 24-carat gold, which is subject to fluctuations. The rate applicable shall be the rate on the day of valuation or purchase, as determined by Loan Bandh.
Sellers aged below 21 years must be accompanied by their legal guardian. Both the Seller and the legal guardian shall be equally responsible for all consequences arising from the transaction.
Loan Bandh may charge up to 5% of the valuation of the jewellery as a handling or dismantling fee if the Seller withdraws after the jewellery has been dismantled and/or melted.
3A. PAN Verification Requirements
The Seller shall be required to submit a valid Permanent Account Number (PAN) card for verification as part of the purchase process. PAN verification is conducted to confirm that the person closing the pledged gold loan and the person selling the gold jewellery to Loan Bandh are one and the same, thereby preventing fraud and misuse of pledged assets.
Submission of PAN is mandatory where the total value of gold jewellery being purchased in a single transaction, or in aggregate across related transactions, equals or exceeds Rupees Two Lakhs (Rs. 2,00,000). This requirement is in compliance with Rule 114B of the Income Tax Rules, 1962, which mandates quoting of PAN for transactions in bullion or jewellery above the prescribed threshold.
Note: As per Rule 114B of the Income Tax Rules, 1962, quoting of PAN is mandatory for purchase or sale of bullion and jewellery where the amount of transaction exceeds Rs. 2,00,000. Loan Bandh is legally obligated to collect and retain a copy of the Seller's PAN card for all such transactions. Sellers who do not possess a PAN may submit Form 60 as a declaration in lieu of PAN, subject to applicable regulations.
Loan Bandh shall retain a copy of the PAN card (or Form 60, where applicable) as part of its transaction records in accordance with applicable laws and regulatory requirements. This record shall be maintained for a minimum of eight (8) years from the date of the transaction.
The Seller's PAN details may be reported to the Income Tax Department as required under the Annual Information Return (AIR) or Statement of Financial Transactions (SFT) reporting obligations applicable to buyers of jewellery above the prescribed threshold.
Providing a false, invalid, or another person's PAN card is a punishable offence under the Income Tax Act, 1961, and may also attract action under applicable anti-money laundering laws. Loan Bandh reserves the right to report any such instances to the relevant authorities.
All disputes arising from this transaction shall be settled by binding arbitration within the jurisdiction of [City, State].
4. Estimation and Valuation
Loan Bandh is not responsible for any weight loss or purity loss after melting. The customer shall have no claim for such losses.
After melting, if the gold is rejected by Loan Bandh due to inadequate purity, or if the customer chooses to withdraw, the melted gold will be returned to the customer. The customer agrees not to claim gold in its original form, shape, or size prior to melting.
The gold price per gram quoted is valid for the day of valuation only and is subject to daily market fluctuations.
Deductions from the sale value include processing fees, documentation charges, pledge release charges paid on behalf of the customer, and any other applicable charges.
All disputes arising from this transaction shall be settled by binding arbitration within the jurisdiction of [City, State].
5. Customer Obligations
The customer shall provide accurate and complete information regarding the pledged gold jewellery, the name of the pledging institution, the loan account number, and the outstanding amount.
The customer shall cooperate fully in the identity verification process, including Aadhaar-based KYC and, where applicable, PAN verification, as well as the execution of the purchase agreement via Aadhaar e-sign.
The customer shall not misrepresent ownership, weight, purity, or any other material aspect of the gold jewellery.
The customer shall inform Loan Bandh of any legal disputes, encumbrances, or third-party claims on the gold jewellery prior to the transaction.
6. Purchase Agreement and Aadhaar e-Sign
The purchase agreement between the customer and Loan Bandh shall be executed digitally using Aadhaar-based e-sign as per the provisions of the Information Technology Act, 2000, and the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
By consenting to the Aadhaar e-sign process, the customer authorises Loan Bandh and its authorised service providers to verify their Aadhaar details through the UIDAI authentication mechanism for the sole purpose of executing the purchase agreement.
The digitally executed purchase agreement shall be legally binding and enforceable in the same manner as a physically signed document.
7. Limitation of Liability
Loan Bandh shall not be liable for any indirect, incidental, or consequential losses arising from the use of its services.
Loan Bandh shall not be responsible for any liabilities arising from the Seller's misrepresentation of ownership, purity, or the pledge status of the gold jewellery.
Loan Bandh shall not be liable for delays caused by technical failures, banking disruptions, or force majeure events beyond its reasonable control.
8. Governing Law and Dispute Resolution
These Terms and Conditions shall be governed by and construed in accordance with the laws of India.
All disputes shall first be attempted to be resolved amicably through mutual discussion within 30 days of written notice.
Unresolved disputes shall be submitted to binding arbitration under the Arbitration and Conciliation Act, 1996, with the seat of arbitration at [City, State].
9. Amendments
Loan Bandh reserves the right to amend these Terms and Conditions at any time. Changes will be communicated through registered email, SMS, or the Loan Bandh platform. Continued use of services after such changes constitutes acceptance of the revised terms.
10. Contact Us
For any queries related to these Terms and Conditions, please contact:
Loan Bandh
Email: support@loanbandh.com
Phone: [Your Contact Number]
Address: [Your Registered Office Address]
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