Gold News: Now it is easy to take gold loan, customers will be happy to know the new rules of RBI

Gold News: People often take loans from the bank by mortgaging this gold. Now the new rules of RBI will change this process a bit. Therefore, it is important to know whether these new rules will provide relief to the common man or increase the problems?

What things have been kept in mind in the new rules?

The Reserve Bank of India (RBI) has kept some special things in mind while making new rules for gold loans. The purpose of these rules is to provide better security to the borrowers. 

Apart from this, transparency will increase in the gold loan process, which will provide correct information to the customers and they can be saved from any kind of fraud. 

These rules will determine the accountability of both banks and non-banking finance companies (NBFCs), like commercial banks. This will provide better service and a reliable system to the customer.

What will be the benefit to the customers?

Now customers can take a loan of up to 85 percent of the value of their gold on a gold loan of up to Rs 2.5 lakh. This will also include interest. Earlier this limit was 75 percent and interest was not included in it. 

Due to this, the customer used to get less loan. Some NBFCs used to give loans only up to 65 percent, due to which customers were not able to get money according to their full need. With the new rules, customers will now get more loans and financial help will become easier than before. This will provide relief to people in times of need.

New rules for gold loan

1. No income or credit check required:

Now if you are taking a gold loan of less than Rs 2.5 lakh, then the bank or company will not need to check your income or credit score. This will benefit people with low income and those taking small loans.

2. Loan has to be repaid in 12 months:

If you have taken a gold loan in which the loan amount and interest are to be repaid together, then it has to be completed within one year (12 months).

3. How much gold can be pledged:

RBI has also decided that only up to 1 kg of gold jewellery can be pledged for gold loan. If you pledge gold coins, then its limit will be up to 50 grams only.

4. Now you can get loan on silver also:

Now you will be able to take a cash loan not only on gold but also on silver jewellery or coins. This will give more people the option to take a loan.

5. Responsibilities of companies fixed:

Companies that give gold loans will now have to keep in mind that when the loan is repaid, it will be necessary to return the pledged gold or silver within the stipulated time.

If the goods are lost or damaged, the company will be solely responsible for it and will have to pay compensation.

6. Transparency is necessary in the loan process:

Now while giving gold loan, the company will have to clearly tell how many carats the gold is, how much it weighs and what gems are studded on it.

If the loan is not repaid (default happens), then it will be necessary to give a written notice before the auction, so that the customer can get complete information.