Gold Loans - Business Outrank

The gold loans are coming under more attention as the Reserve Bank of India is set to impose more stringent rules on banks that offer loans against gold. The central bank is planning to strengthen the due diligence process and make the lenders assure of the use of the funds advanced to the borrowers. This decision has been made as the RBI is trying to keep a check on the growth of the gold loan sector which has seen a rise recently. In an attempt to ensure that all the financial institutions are treated equally, the RBI is going to demand that banks and NBFCs carry out more stringent due diligence on the clients they lend money to. They will also be required to establish the ownership of the gold that has been presented as collateral. According to sources, the RBI wants to stop unscrupulous lending and to maintain stability in the sector. It has been observed that there is a growing trend in the gold loans, which has increased almost 50% in the segment between September 2024 and September 2024. This increase is mainly because of the fact that, with the new regulations, unsecured loans are not easily available, thus, making gold backed loans more attractive to borrowers. This has been after India, the second largest consumer of gold, setting a record in the purchase of gold at an astronomical price to buy gold to celebrate weddings and other ceremonies. Nevertheless, the fast growth in the gold loan sector has caused anxiety to regulators, and so the RBI has had to step in and ensure that there is more order in the way of lending in the sector. These issues are expected to be resolved by the new regulatory framework and to make sure that the banks and other financial institutions become more sensible in their decisions

What's Hot

Mastercard and Visa Linked to Illegal Gambling Sites Scamming UK Customers

Virgin Targets £700m Investment to Challenge Eurostar on Cross-Channel Trains

US Tariffs on Pharma Imports Threaten Indian Firms, Auto Sector Remains Unaffected

Virus Susceptibility in Species: Study Reveals Surprising Findings

Effective Yoga Poses to Naturally Manage Blood Sugar Levels

Health Budgets Of States Fall Below 8%, Missing National Health Policy Targets

The Connection Between Diet and Organic Skincare – Foods for Healthy Skin

Priyanka Chopra’s Stunning Desi Look Steals the Spotlight at Her Brother’s Wedding Festivities

Jana Nayagan: Vijay Wields a Whip in Stunning 2nd Look Poster, Thrilling Fans

Assam’s Jatin Goswami Honored with Padma Bhushan for Sattriya Legacy

Vijay Vikram Singh Urgently Appeals for Respect Amidst Intense Backlash from Rajat Dalal Fans: ‘I Am Not Bigg Boss

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Indian government approves Singapore Airlines bid to merge Vistara and Air India

Independence Day and Raksha Bandhan Fuel Airbnb Travel Rush

Virus Susceptibility in Species: Study Reveals Surprising Findings

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Bachchan’s ₹83 Crore Duplex Sale Sparks Unbelievable Investment Growth

Kartik Aaryan’s Fitness Secret: How He Achieved a Stunning Transformation

Browsing: Gold Loans

RBI to Tighten Regulations on Gold Loans

Mastercard and Visa Linked to Illegal Gambling Sites Scamming UK Customers

Virgin Targets £700m Investment to Challenge Eurostar on Cross-Channel Trains

US Tariffs on Pharma Imports Threaten Indian Firms, Auto Sector Remains Unaffected

AI Agents for Small Businesses: Meta and Salesforce Lead the Way

Our Picks

Mastercard and Visa Linked to Illegal Gambling Sites Scamming UK Customers

Virgin Targets £700m Investment to Challenge Eurostar on Cross-Channel Trains

US Tariffs on Pharma Imports Threaten Indian Firms, Auto Sector Remains Unaffected

Most Popular

Mastercard and Visa Linked to Illegal Gambling Sites Scamming UK Customers

Harvesting Hope: Rahul Gandhi’s Empathy in Action with Farmers before 2024 Elections

Is Modi Afraid? Congress Leader Accuses PM of Targeting Rahul Gandhi

Subscribe to Updates

What's Hot

Browsing: Gold Loans