RBI Proposes New Gold Loan Rules

The Reserve Bank of India (RBI) has introduced draft guidelines to tighten gold loan regulations. These aim to enhance transparency and reduce misuse in gold-backed lending.

Key Changes in the Draft Guidelines

Loan-to-Value (LTV) Cap: Maximum of 75% of gold's value. Gold Quality Checks: Standardized procedures for assessing purity and weight.

Key Changes in the Draft Guidelines

Loan Classification: Differentiation between consumption and income-generating loans. Repayment Terms: Bullet repayment loans capped at 12 months.

Finance Ministry's Concerns

Exempt Small Borrowers: Those taking loans under ₹2 lakh. Delay Implementation: Postpone new rules until January 1, 2026.

What This Means for You

Stay Informed: Keep an eye on the final RBI guidelines. Loan Amounts: Be aware of potential changes in LTV ratios. Documentation: Ensure proper records of gold ownership and purity