Gold Loan: Will the rules for taking gold loan change? This decision of RBI will have an impact..

The Reserve Bank of India is going to change the rules of gold loans soon. According to Fitch Ratings, RBI will soon introduce new guidelines for this, which will bring clarity and transparency to gold loans. According to Fitch Ratings, small players in the gold loan business may face some difficulties due to the new guidelines, but these guidelines can bring good opportunities for big gold loan players like Muthoot Finance Limited and Manappuram Finance Limited.

On Tuesday, April 15, the stock market also got the benefit of RBI's gold loan guidelines. While Muthoot Finance shares were trending at 2038.70 with a gain of 1.6% around 2 pm, Manappuram shares were also trending at 225.80 with a gain of 1.06%.

This will be the benefit of RBI's guidelines.

According to Fitch Ratings, the new RBI guideline on gold loans will end the uncertainty in this sector. Along with this, the gold loan sector will strengthen rapidly, but in the midst of all this, the new RBI guideline will increase the paperwork a bit and this will affect the non-banking financial institutions (NBFI). Let us tell you that last week RBI's monitoring policy meeting was held, in which RBI Governor Sanjay Malhotra gave information about the new guideline on gold loans. Along with this, he also cut the repo rate by 25 basis points.

This is the shortcoming of the gold loan rules.

At present, the companies providing gold loans do not follow the loan-to-value (LTV) ratio. Also, some gold loan companies take the services of fintech agents and third-party companies for the storage of gold jewellery pledged by the customers, but earlier this work was done by the gold loan companies themselves. Let us tell you that the Reserve Bank of India does not consider the involvement of third parties in gold loans as right. That is why RBI is also preparing to bring a new guideline on gold loans.

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