Gold Loan- There are many questions in the industry regarding the new regulation proposed by the Reserve Bank of India to curb the misuse of gold loans. Reserve Bank of India (RBI) Governor Sanjay Malhotra has answered all these questions. He has also announced relief on gold loans of less than Rs 2.5 lakh.
Talking to reporters after the monetary policy review meeting, the RBI governor said that the loan-to-value (LTV) ratio on gold loans up to Rs 2.5 lakh is being increased to 85%, but this amount will also include the interest amount. Earlier, the draft regulation proposed to increase the LTV to 75%. He also said that even if someone does not have the bill of his gold, he will still be able to get a gold loan. He will have to give a declaration for this.
The RBI governor assured that this is just a draft proposal. It will be discussed with stakeholders before implementing it. Apart from this, its impact analysis will be done. Only after this it will be implemented. The RBI Governor said that there is nothing new in these regulations. All the old rules are being consolidated in this. Since some institutions were not following these rules, they are being introduced as new regulations.
Let us tell you, the Finance Ministry has asked the RBI to implement these regulations from January 1, 2026. In its recommendations, the Finance Ministry had asked the RBI to ensure that no problems are faced by those taking small gold loans. The ministry has also recommended keeping gold loans less than Rs 2 lakh out of the proposed guidelines so that such people can get the loan amount in a shorter time.