The RBI has flagged concerns over rising volatility in gold prices and advised lenders to exercise caution in the gold loan segment.
'In the last one year, we have added more than Rs 1.7 trillion, and we are on track.'
'Do exhaustive research and then select the one that best fits your budget and requirements.'
With the price of gold entering a strong bull run, gold-loan non-banking financial companies (NBFCs) are under the spotlight, even though their performance is not directly linked to gold price. Muthoot Finance outperformed in the April-June quarter (Q1) of 2025-26 (FY26), with its assets under management (AUM) growing 10 per cent quarter-on-quarter (Q-o-Q) and 42 per cent year-on-year (Y-o-Y), an improvement of 88 basis points (bps) Q-o-Q in net interest margin (NIM), and a fall in credit cost. Gold AUM rose 40 per cent Y-o-Y and 10 per cent Q-o-Q. The company recorded recoveries of 350 crore, including 100 crore from an asset reconstruction company (ARC), resulting in a 100-bp Q-o-Q yield increase.
Investors can meet cash needs without selling their securities.
Use these loans to meet emergency needs, and not to fund holidays or luxury purchases.
Emphasising that human rights are the most sacrosanct component of a human life, the Jammu and Kashmir High Court has ordered the Union Home Ministry to facilitate the return of a woman deported to Pakistan following the Pahalgam terror attack.
The Reserve Bank of India's (RBI's) draft guidelines on gold loans, if implemented in their current form, are expected to impact non-banking financial companies (NBFCs) and mid-tier banks in the near term, more significantly than larger banks, according to analysts.
The Reserve Bank of India (RBI) on Wednesday came out with comprehensive draft guidelines to harmonise and regulate gold loans across all financial entities, including putting a cap of 75 per cent on loan-to-value (LTV) ratio. The draft guidelines also aim to address concerns related to certain lending practices, provide clarity on specific aspects, and strengthen the conduct-related standards in the sector.
Pakistani Hindu refugees residing in Delhi's Majnu Ka Tila are experiencing anxiety over their visa status despite government clarifications regarding Long Term Visas (LTVs). The government's decision to revoke all visas issued to Pakistani nationals, following heightened tensions between India and Pakistan, has left many refugees worried about their future. While LTVs for Hindu Pakistani nationals remain valid, the renewal process every two years and ongoing citizenship applications under the Citizenship (Amendment) Act, 2019, have fueled concerns. The Delhi Police has initiated a verification drive, adding to the unease among the refugees, who fear being uprooted yet again. The article highlights the plight of these refugees, who have fled Pakistan seeking a better life in India, and the uncertainties they face in the current political climate.
'LAP is suited for borrowers with a steady income, sound repayment discipline, and a clear repayment plan.'
The move is to align affordable housing finance flows to the increase in property costs and inflation, says Raghu Mohan.
Abdul Waheed was brought from Srinagar by the Jammu and Kashmir police for his repatriation to Pakistan.
Sana, an Indian woman married to a Pakistani doctor, was forced to hand over her two young children to their father at the Attari border due to visa restrictions imposed by the Indian government following a terror attack in Jammu and Kashmir. Sana, who entered India on a 45-day visa, is unable to return to Pakistan as she is not yet a Pakistani citizen and the process could take another four years. The Indian government revoked the visas of Pakistani nationals on Short-Term Visas, leading to the separation of families at the border.
'The rise in SIP contributions has created a pool of long-term MF assets that can be pledged for loans.'
Hours after being dismissed from service for 'concealing' his marriage with a Pakistani woman, Central Reserve Police Force trooper Munir Ahmed said he solemnised his marriage nearly a month after getting permission from the force's headquarters last year.
Sharada Kukreja, a Pakistani woman living in Odisha for 35 years after marrying an Indian citizen, has been served a notice to leave the country. She has appealed to Prime Minister Narendra Modi and Odisha CM Mohan Charan Majhi to stop her deportation, citing her long-standing ties to India and family here. Sharada fled Pakistan to escape forced conversion and marriage, and despite having an Aadhaar card and participating in elections, she has not been granted Indian citizenship. The Odisha government has identified 12 Pakistani nationals residing in the state and asked them to leave by April 27. Another Pakistani woman in Bhubaneswar also received a country exit permit on Saturday.
The Reserve Bank of India (RBI) on Monday directed banks and non-banking financial companies (NBFCs) offering gold loans to thoroughly review their policies, processes, and practices to identify any gaps. The central bank also told them to closely monitoring their gold loan portfolios amid significant growth observed in this segment vis--vis some lenders. Additionally, the RBI, through a circular, instructed these lenders to ensure adequate controls over outsourced activities and third-party service providers.
Only borrow an amount that can be repaid comfortably. The ratio of total EMI to take-home salary should not exceed 40 per cent.
While festive offers can reduce costs, borrowers should also consider the lender's transparency and service quality. Customers need to be mindful of their repayment capacity.
'If the borrower can't repay the loan due to lack of income or losses from speculative activities, they risk defaulting on it.' 'This could lead to the bank seizing the property.'
In addition to interest rates, review the fine print for penalties and repayment terms, and select a reputable lender to avoid harsh recovery practices.
'If the portfolio growth rate is higher, take this loan. If it is lower, liquidate your investments.'
Concerned over household savings moving towards alternative investment avenues, RBI Governor Shaktikanta Das on Thursday asked banks to mobilise deposits through innovative products and services by leveraging their vast branch network. "Banks are taking greater recourse to short-term non-retail deposits and other instruments of liability to meet the incremental credit demand. "This, as I emphasised elsewhere, may potentially expose the banking system to structural liquidity issues," he said.
'In the case of corporate credit, especially to AAA borrowers, lenders will have to take a fresh look at pricing.'
Loan against gold as a product is catching on fast. Let's keep the momentum going, but aim for sustainable growth. A few bad apples should not ruin the brunch, argues Tamal Bandyopadhyay.
Enhancing your credit score is the key to improving loan eligibility and securing a favourable interest rate.
The home loan top-up, a kind of secured multipurpose personal loan, is on the regulator's radar, points out Tamal Bandyopadhyay.
Customers who possess gold jewellery but are either being denied a personal loan or are being asked for a high interest rate due to their poor credit profile may consider a gold loan.
FSN E-Commerce Ventures (Nykaa) hosted its annual investor day recently. The responses were positive from analysts. Although some analysts pared FY25 and FY26 estimates, the bulk continued to issue 'buy' calls after the stock rose 2.5 per cent. The management expects the Beauty & Personal Care (BPC) business to grow at a 25 per cent compound annual growth rate (CAGR) during FY24-28.
The finance ministry has directed all state-owned banks to review their gold loan portfolio as instances of non-compliance with regulatory norms have been noticed by the government. The Department of Financial Services (DFS) in a communication addressed to heads of public sector banks has asked them to look at their system and processes related to gold loan. "We have asked banks to undertake comprehensive review of the gold loan business," financial services secretary Vivek Joshi told PTI.
In mid-March this year, the finance ministry asked state-run banks to review their gold loan portfolio for the two-year period between January 1, 2022, and January 31, 2024. This business had grown at a fast clip. Reserve Bank of India (RBI) data has it that it grew 15 per cent to Rs 1 trillion in FY24. Now, in recent times, any kind of exuberance in financial services has seen the authorities swoop down - be it pushing the lines on governance or unsecured credit.
If you pledge market-linked instruments and their value plummets, you will have to provide additional collateral, points out Sanjay Kumar Singh.
'They have since only tried to improve systems. Also, with regulatory guidance from time to time, we are in a position to assess a situation and react in time.'
The affordable housing segment may be seeing an uptick which is a good sign of consumption momentum. This is the biggest-ticket purchase for middle income and lower income families. The current activity is at least partly driven by a pause in interest rate hikes.
A home loan is a long-term contract, so do shop around before signing on the dotted line, advises Sarbajeet K Sen.
In order to promote the housing sector, Reserve Bank of India on Friday decided to rationalise risk weightage on housing loans, making the product attractive for both borrowers and lenders. With revision in the risk weightage, the requirement of capital provision for banks will come down. This will encourage banks to push housing loan products with attractive features.
Janta Mali, who has applied for Indian citizenship, had gone to visit her ailing mother in Pakistan's Mirpur Khas in February on an NORI visa with her husband and children, who are Indian citizens, but was not allowed to travel back after the imposition of a nationwide lockdown to curb the spread of the coronavirus as her visa expired.
The NDA government has approved additional facilities for members of minority communities living in India on long-term visa
Gold loan is currently the fastest-growing loan category (among the various types disbursed to individuals). On February 26, 2021, the outstanding loan against gold jewellery stood at Rs 56,596 crore. By February 25, 2022, it had risen to Rs 71,408 crore, a year-on-year growth of 26.2 per cent, according to the Reserve Bank of India's (RBI's) data. Several factors are driving the demand for gold loans.
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