​Loan-to-Value Ratios in Gold Loans

On 16th May, 2024, the Reserve Bank of India (RBI) issued a stern directive to non-banking financial companies (NBFCs) involved in gold loans, urging them to adhere strictly to regulations concerning loan-to-value ratios, auction procedures, and cash disbursements.

  • The RBI has urged NBFCs to conduct transparent auctions in cases of non-payment, ensuring that individuals whose gold is being auctioned are informed and can participate physically at the taluka level.

Understanding Loan-to-Value Ratios (LTV)

  • It is the ratio of the loan amount sanctioned to the value of the gold deposited as collateral.
  • The value of the gold used as collateral is based solely ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Buy July 2024 Issue

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Related Content