New Delhi: The Reserve Bank has increased the value of debt on gold jewelery, giving great relief to the common man. Now gold jewelery will be able to get loans up to 90 percent of its value. At present, there was a provision to take loans up to 75 percent of the value of gold. RBI Governor Shaktikanta Das announced the monetary review policy on Thursday.
According to the new guidelines, up to 90 per cent of the value of gold can now be taken. This rule will be effective till 31 March. Gold-based loans have become more popular in banks during the Corona epidemic. It is considered safer than other unsecured baroings.
The Reserve Bank says that the economic growth rate may decline during the current financial year, because the epidemic has affected activities worldwide. Concern has also increased about the fact that people will face problems in the repair of business and personal loans. Apart from gold loan companies, many government and private banks are offering gold loans to attract customers.
According to the RBI statement, “As per the existing guidelines, banks cannot lend more than 75 percent of the value of gold for non-agricultural purposes on gold jewelery and jewelery. In view of the economic impact of the Kovid 19 epidemic on families, entrepreneurs and small traders, loans on gold jewelery and jewelery have been reduced to 90 per cent of its value. That is, the loan to value ratio (LTV) on gold to be pledged has been increased from the current 75 percent to 90 percent. Gold loan This exemption limit will be till 31 March 2021. “
