Gold Loan- The Reserve Bank of India (RBI) has changed the rules to bring a big change in the gold loan sector, which will make it easier for lenders to expand their business model. According to a report by S&P Global Ratings, lenders will have more freedom to offer short-term loans for gold-backed consumption loans. This will allow small borrowers to get more value by pledging gold. Let us know what are the new rules of RBI regarding gold loan? Along with knowing this, let us know how much gold loan can be availed on 10 grams of gold?
What is RBI’s new rule on Gold Loan?
According to S&P Global Ratings, those taking loans of Rs 2.5 to 5 lakh will be given a maximum of 80 percent of the gold rate. For loans above Rs 5 lakh, the maximum gold price has been made 75 percent. These rules will be implemented by companies by April 1, 2026.
How much Gold Loan can one get on 10 grams of gold ?
If you want to take a loan by pledging 10 grams of gold, then first of all the purity is checked. Usually 22 carat gold jewellery is given priority. The market price of gold per gram on the day of loan application also affects the loan amount. 1% of the market value is provided by the lenders, which is called loan-to-value (LTV).
You can take a loan from a bank or non-banking finance company (NBFC) according to your convenience. Both provide loans with different interest rates. Gold loan is given by NBFC at a higher interest rate. Whereas, the bank gives gold loan at a lower interest rate. Although gold loan is approved quickly by NBFC, but the bank may take more time in this process.
Which loan will be better in case of sudden financial need? If you also want to know the answer to this question, then let us tell you that taking a gold loan is a good option. Gold loan can be cheaper than property loan, personal loan, corporate loan etc. However, if you decide by looking at which loan is being charged more interest, then taking a loan will not become a headache for you.