Gold Loan: Strictness on gold loan may increase. According to sources, the government and the Reserve Bank of India (RBI) are considering increasing the strictness on gold loans. The government and RBI are keeping an eye on the complaints related to gold loan. The Finance Ministry and RBI are considering increasing the strictness on gold loans.
Complaints About Giving Loan Against Fake Gold
According to sources, everything is not going well in the matter of giving gold loans. Complaints are being received about giving loans on fake gold in collusion with lenders and staff. Therefore, there is a possibility of disclosure rules for gold loan from both the customer and the company. The Finance Ministry has asked PSU banks to review the gold loan business. Gold photo, more than one jeweler certificate may be required.
Let us tell you that RBI recently banned IIFL Finance from issuing new gold loans. The central bank banned the loan in view of supervisory concerns. RBI says that irregularities have been found in the loan-to-value ratio of IIFL Finance. According to RBI rules, banks or gold loan finance firms can give only 75% of the value of the jewellery. However, relaxation was provided during the COVID-19 period to ease the hardship. The RBI had increased the loan to value (LTV) for loans sanctioned by banks against pledge of gold ornaments and jewelery for non-agriculture purposes from 75% to 90% in August 2020. This discount was available till March 31, 2021.
Exclusive- News According To Sources
- Strictness May Increase On Gold Loan
- Government And RBI Keeping An Eye On Complaints Related To Gold Loan
- Finance Ministry And RBI Consider Increasing Strictness On Gold Loans
- Gold Photo, More Than One Jeweler Certificate May Be Required
- Disclosure Rules Possible For Gold Loan From Both Customer And Company
- Complaints About Giving Loan On Fake Gold In Collusion With Lenders And Staff
- Finance Ministry Asks PSU Banks To Review Gold Loan Business
