RBI norms add glitter to gold loans

Sat June 14 2025

One of the common modes of raising loans amongst the relatively lower income sections of the population in India is through pledging gold to banks or NBFCs (and, of course, informal lenders).

For perspective, as of FY25, the outstanding gold loan book size in India was as much as ₹2.1 trillion, an increase of over 103 per cent year-on-year. Silver, too, is another metal that is used to avail loans.

Given the importance of the yellow metal, and silver in shoring up the finances of many borrowers, the RBI recently came out with a new set of directions on some key aspects of these transactions.

Source: https://www.thehindubusinessline.com/