Archive · 2 Jun 2025
Finance Ministry Proposes Relief on Gold Loan Rules
The Indian government is looking at new rules for gold loans.
They want to make sure small borrowers are not hurt by these new rules.
The Finance Ministry is giving suggestions to the RBI, suggesting that borrowers who take out loans under ₹2 lakh should not be affected.
Also, they are considering delaying the start of these rules until January 1, 2026, to give companies time to adjust.
This news has caused the shares of some finance companies to go up.
Finance Ministry recommends relief for small-ticket gold loan borrowers.
The Department of Financial Services (DFS) has submitted suggestions to the RBI on gold loan guidelines.
DFS proposed excluding borrowers under ₹2 lakh from new requirements.
Implementation of new norms could be deferred to January 1, 2026.
Muthoot Finance shares rose nearly 6% following the news.
- Who
- The Finance Ministry and RBI
- What
- Recommendations and draft directions on lending against gold collateral.
- When
- Implementation proposed for January 1, 2026.
- Where
- India
- Why
- To protect small-ticket borrowers and address irregularities.
RBI
Fintech Lenders
Loan-to-Value Ratio
RBI
The RBI is concerned about weak oversight of the LTV ratio.
Fintech Lenders
Lenders are likely to reduce disbursements due to changes in LTV ratios.
- Ministry Involved
- Finance Ministry
- Key Suggestion
- Exempt borrowers under ₹2 lakh
- Proposed Implementation
- January 1, 2026
- Affected Industry
- Gold Loans
- Company Affected
- Muthoot Finance
- Share increase
- 6%
Sources
SME loans likely to become costlier as NBFCs face higher provisions under digital lending norms
RBI to formalise expected credit loss framework, project finance and issues guidelines to curb mis-selling of financial products
Reserve bank launches climate risk data platform to address financial sector risks
29_Mum_MS_RBIregulation
Fintech projected to grow with focus on product expansion, risk control, inclusion
RBI's gold loan draft rules: Finance Ministry recommends relief for borrowers under ₹2 lakh, Jan 2026 rollout
