7. What are the prescribed standards for gold loan documentation? The loan agreement executed with borrowers, must be standardised across all branches of the lender, and should detail all key terms, including, the description and value of the collateral taken, the auction procedure (in the event of a default), the notice period provided to the borrower
The growth in gold loans of banks reached an all time high in the financial year 2024-25. According to the latest data of Reserve Bank of India the gold loan portfolio of scheduled commercial banks increased 87.4 percent in the April 2024 and February 2025 period of the last financial year as against 15.4 percent
Gold loans, having doubled through the year, emerged as the fastest-growing consumer credit segment in FY25, outpacing all retail advances, such as housing and vehicles, and even unsecured products such as credit cards and personal loans. Banks’ outstanding credit against gold jewellery logged in at Rs 2.09 lakh crore on March 21, 2025, compared with
Gold loans have emerged as one of the most accessible and popular forms of short-term credit in India, especially during emergencies or when urgent liquidity is needed. These loans are secured by pledging gold jewellery or ornaments with a bank or a non-banking financial company (NBFC). Since gold is offered as collateral, lenders face lower
The Reserve Bank of India (RBI) has issued a new draft framework for gold loan. These draft regulations are aimed at enhancing risk management, standardising lending practices and ensuring responsible credit flow by banks and non-bank lenders (NBFCs). These proposed rules will apply to all types of lenders i.e. banks, NBFCs, co-operative banks and regional
Gold has long been a trusted asset in Indian households, not just as jewellery but also as a financial backup during tough times. When faced with a cash crunch, many people prefer gold loans over other borrowing options because they are easier to obtain. In 2024, more people relied on secured loans like gold and
Bengaluru: Fino Payments Bank is focusing on strengthening its credit disbursement business in partnership with lending institutions. Being a payments bank, Mumbai-based Fino cannot offer credit from its own balance sheet. It needs to work with other lenders as a sourcing partner. The bank is currently undertaking pilots around products such as home loans, gold