Rediff.com  » Business » Now you can get 90% loan on gold

Now you can get 90% loan on gold

Source: PTI
August 06, 2020 15:43 IST
Get Rediff News in your Inbox:

The relaxation shall be available till March 31, 2021.

Gold Loan

Illustration: Dominic Xavier/Rediff.com

The Reserve Bank of India on Thursday raised the permissible loan to value (LTV) ratio for gold loans for non-agricultural purposes to 90 per cent from 75 per cent.

 

“With a view to further mitigate the economic impact of the COVID-19 pandemic on households, entrepreneurs and small businesses, it has been decided to increase the permissible loan to value ratio for loans against pledge of gold ornaments and jewellery for non-agricultural purposes from 75 per cent to 90 per cent,” RBI said in its Statement on Developmental and Regulatory Policies.

The said relaxation shall be available till March 31, 2021, the central bank said.

The detailed guidelines on this will be issued by RBI later on Thursday.

The earlier guidelines said the loans sanctioned by banks against pledge of gold ornaments and jewellery for non-agricultural purposes should not exceed 75 per cent of the value of gold ornaments and jewellery.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2020 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
SHARE THIS STORY 

Moneywiz Live!