Privacy Policy

Effective Date: June 2026

1. Introduction

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, bank, or Non-Banking Financial Company (NBFC). It is a buyer of pledged gold assets from individuals seeking to settle and close their existing loans.

Loan Bandh ('we', 'us', or 'our') is committed to protecting your privacy. This Privacy Policy explains how we collect, use, store, and protect the personal information you provide when using our services. This policy is compliant with the Information Technology Act, 2000, and the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.

By using our services, you consent to the collection and use of your information as described in this policy.

2. Information We Collect

2.1 Identity and KYC Information

Full name, date of birth, and gender
Aadhaar number and demographic details obtained through UIDAI-authorised KYC verification
Permanent Account Number (PAN) card details, collected where the transaction value equals or exceeds Rs. 2,00,000, or where required for identity verification purposes
Photograph (selfie and/or Aadhaar card image as required for KYC)

2.2 Financial and Transaction Information

Bank account number and IFSC code for disbursement of sale proceeds
Name of the pledging institution, loan account number, and outstanding pledge amount
Details of gold jewellery including weight, purity, and estimated value
Transaction value and payment records

2.3 Contact and Device Information

Mobile number registered with UIDAI (used for Aadhaar OTP authentication)
Email address and residential address
Device type, IP address, and browser information when using our platform

2.4 Usage Information

Log data including pages visited and interactions on our platform
Cookies and similar tracking technologies to improve user experience

3. Aadhaar KYC Verification and e-Sign

Loan Bandh conducts Aadhaar-based KYC (Know Your Customer) verification for all customers availing our gold purchase service. This is the primary mode of identity verification used by Loan Bandh.

3.1 Why We Conduct Aadhaar KYC

To verify your identity before entering into a gold purchase transaction.
To ensure compliance with applicable anti-money laundering laws and regulations.
To facilitate the execution of the purchase agreement through Aadhaar-based e-sign, which is the legally recognised method for digital signing under the Information Technology Act, 2000, and the Aadhaar Act, 2016.

3.2 How Aadhaar Data is Used

Your Aadhaar number is used solely for identity authentication through the UIDAI authentication service. Loan Bandh does not store your full Aadhaar number in its systems beyond what is legally permitted under UIDAI regulations.
Aadhaar-based authentication is performed through a UIDAI-authorised Authentication Service Agency (ASA/AUA) or a licensed e-sign service provider in compliance with UIDAI guidelines.
Demographic or biometric data obtained through Aadhaar authentication is not shared with any third party except as required by law.
Your explicit consent is obtained before any Aadhaar-based authentication or e-sign process is initiated.

3.3 Aadhaar e-Sign for Purchase Agreement

When you execute the gold purchase agreement with Loan Bandh using Aadhaar-based e-sign, a One-Time Password (OTP) is sent to your mobile number registered with UIDAI. Your authentication via this OTP confirms your identity and your intent to enter into the purchase agreement. The digitally executed agreement is legally valid and admissible as evidence under Indian law.

The Aadhaar e-sign process is used exclusively for executing the purchase agreement between you (the customer/seller) and Loan Bandh and for no other purpose.

4. PAN Verification and Collection

In addition to Aadhaar-based KYC, Loan Bandh collects and verifies the Permanent Account Number (PAN) of the Seller under specific conditions as detailed below.

4.1 Purpose of PAN Verification

Identity Matching: PAN verification is conducted to confirm that the individual closing the pledged gold loan and the individual selling the gold jewellery to Loan Bandh are one and the same person. This safeguard is in place to prevent fraudulent transactions involving pledged assets belonging to another person.
Regulatory Compliance: Collection and retention of PAN is mandatory under Rule 114B of the Income Tax Rules, 1962, for all transactions involving purchase or sale of bullion and jewellery where the transaction value equals or exceeds Rupees Two Lakhs (Rs. 2,00,000).
Anti-Money Laundering: PAN records form part of Loan Bandh's customer due diligence obligations under applicable anti-money laundering regulations.

4.2 When PAN is Required

Submission of a valid PAN card is mandatory for all gold purchase transactions where the total value of gold jewellery being purchased in a single transaction, or in aggregate across related transactions, equals or exceeds Rs. 2,00,000.
Even below the Rs. 2,00,000 threshold, Loan Bandh may request PAN as part of enhanced due diligence where it deems necessary for the purposes of identity verification or fraud prevention.
Sellers who do not possess a PAN card may submit a duly completed Form 60 as a declaration in lieu of PAN, in accordance with Rule 114B of the Income Tax Rules, 1962.

Note: As per Rule 114B of the Income Tax Rules, 1962, quoting of PAN is mandatory for the purchase or sale of bullion and jewellery where the amount of the 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 without a PAN may submit Form 60 as a declaration in lieu of PAN, subject to applicable regulations.

4.3 How PAN Data is Used

PAN details are used solely for identity verification, transaction record-keeping, and statutory reporting obligations. Loan Bandh does not use PAN information for any marketing or profiling purposes.
A copy of the PAN card (or Form 60, where applicable) is retained by Loan Bandh as part of its transaction records for a minimum period of eight (8) years from the date of the completed transaction, in compliance with applicable laws.
Loan Bandh may be required to report the Seller's PAN details to the Income Tax Department under the Statement of Financial Transactions (SFT) reporting framework applicable to buyers of jewellery above the prescribed threshold.

4.4 Consequences of Providing False PAN Information

Providing a false, invalid, cancelled, or another person's PAN card is a punishable offence under Section 272B of the Income Tax Act, 1961, and may also attract action under applicable anti-money laundering laws.
Loan Bandh reserves the right to report any instance of PAN misrepresentation to the Income Tax Department, the Financial Intelligence Unit (FIU-IND), or other relevant statutory authorities.
Any transaction found to involve misrepresentation of PAN details may be cancelled, and Loan Bandh reserves the right to recover any amounts paid or to take legal action as permitted under applicable law.

5. How We Use Your Information

To verify your identity through Aadhaar-based KYC and, where applicable, PAN verification, before proceeding with the gold purchase.
To confirm that the person closing the pledged gold loan and the person entering into the sale transaction with Loan Bandh are one and the same.
To assess the gold jewellery offered for sale, including its purity and weight.
To coordinate and facilitate the release of your pledged gold from the lending institution on your behalf.
To disburse the sale proceeds to your registered bank account upon completion of the purchase.
To execute the gold purchase agreement through Aadhaar-based e-sign.
To communicate with you regarding transaction status, documentation, and service updates.
To detect and prevent fraud, identity theft, and illegal activities.
To comply with applicable laws and regulatory obligations, including statutory reporting to the Income Tax Department and other authorities.
To improve our platform and services through internal analysis of aggregated, anonymised usage data.

6. Sharing of Your Information

Loan Bandh does not sell or rent your personal information. We may share your information only in the following limited circumstances:

With UIDAI-authorised KYC service providers, ASA/AUA agencies, and licensed e-sign service providers, solely for the purposes of Aadhaar-based identity verification and execution of the purchase agreement.
With the Income Tax Department or other statutory authorities as required under Rule 114B of the Income Tax Rules, 1962, the Statement of Financial Transactions (SFT) framework, or any other applicable law.
With banks or financial institutions for the purpose of facilitating the release of your pledged gold and crediting sale proceeds to your account.
With technology and cloud service providers who process data on our behalf under strict confidentiality and data processing agreements.
With regulatory authorities, law enforcement agencies, or courts when required by law, court order, or valid government request.
With legal counsel or recovery agencies in the event of a dispute or default, to the extent permitted by law.

7. Data Security

Loan Bandh implements appropriate technical, administrative, and physical safeguards to protect your personal data, including Aadhaar and PAN details. Our measures include:

Encryption of sensitive data in transit and at rest using SSL/TLS and AES-256 protocols.
Multi-factor authentication for platform access.
Regular security audits, vulnerability assessments, and penetration testing.
Strict access controls ensuring only authorised personnel can access customer data on a need-to-know basis.

While we take all reasonable precautions, no system is entirely immune to risk. In the event of a data breach affecting your rights, we will notify you as required by applicable law.

8. Data Retention

We retain your personal information for as long as is necessary to fulfil the purposes described in this policy, or as required by applicable law. Records relating to purchase transactions — including Aadhaar KYC records, PAN card copies or Form 60 declarations, and transaction details — are retained for a minimum period of eight (8) years from the date of the completed transaction, in line with applicable financial record-keeping and income tax regulations. After this period, data is securely deleted or anonymised.

When you voluntarily send us electronic mail, we will keep a record of this information so that we can respond to you. We only collect information from you when you register on our site or fill out a form. Also, when filling out a form on our site, you may be asked to enter your: name, e-mail address or phone number. You may, however, visit our site anonymously. In case you have submitted your personal information and contact details, we reserve the rights to Call, SMS, Email or WhatsApp about our products and offers, even if your number has DND activated on it.

9. Your Rights

Right to Access: You may request a copy of the personal information we hold about you.
Right to Correction: You may request correction of any inaccurate or incomplete personal information.
Right to Withdraw Consent: You may withdraw consent for data processing where it is based solely on your consent, subject to our legal and statutory obligations. Please note that withdrawal of consent may affect your ability to avail our services.
Right to Grievance Redressal: You may lodge a complaint with our Grievance Officer if you believe your data has been mishandled.

To exercise any of these rights, please contact our Grievance Officer at the details provided below.

10. Cookies and Tracking Technologies

Our website and application use cookies and similar tracking technologies to enhance user experience and analyse platform traffic. You may manage cookie preferences through your browser settings, though disabling certain cookies may affect platform functionality.

11. Third-Party Links

Our platform may contain links to third-party websites. Loan Bandh is not responsible for the privacy practices of such third parties and encourages you to review their respective privacy policies.

12. Minors

Our services are intended for individuals who are 21 years of age or older. We do not knowingly collect personal information from minors under 18 years. If we become aware of such collection, we will promptly delete such information.

13. Changes to This Privacy Policy

Loan Bandh may update this Privacy Policy from time to time. Material changes will be communicated to you via registered email, SMS, or a notice on our platform. Continued use of our services after such changes constitutes your acceptance of the updated policy.

14. Grievance Officer

In accordance with the Information Technology Act, 2000, and rules thereunder, our Grievance Officer details are:
Name: [Grievance Officer Name]
Designation: Grievance Officer, Loan Bandh
Email: grievance@loanbandh.com
Phone: [Contact Number]
Address: [Registered Office Address]

We endeavour to resolve all grievances within 30 days of receipt.

15. Contact Us

For any questions or concerns regarding this Privacy Policy, please contact:
Loan Bandh
Email: privacy@loanbandh.com
Phone: [Your Contact Number]
Address: [Your Registered Office Address]