New Delhi: Small gold-backed loans are about to get simpler. RBI Governor Sanjay Malhotra has announced that no credit appraisal will be required for gold loans up to Rs 2.5 lakh. This move is aimed at making the process easier and faster for borrowers who pledge gold as collateral. He also added that the draft regulations are ready and the final guidelines will be issued by Friday evening or latest by Monday.
After announcing the outcome of the Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra addressed the media and clarified the reason behind the draft guidelines on gold loans. He said, “There was nothing new in this (draft) that we have released. We have consolidated and reiterated our old rules.”
This statement follows the government’s recent request to the RBI to ensure that small gold loan borrowers are not impacted by the proposed new rules on lending against gold. In a post on social media platform X, the Finance Ministry shared that the Draft Directions on Lending Against Gold Collateral have been reviewed by the Department of Financial Services (DFS) under the guidance of Finance Minister Nirmala Sitharaman.
The Department of Financial Services (DFS) has shared its suggestions with the RBI, urging the central bank to ensure that the new rules don’t make it harder for small borrowers to access gold loans. Many of these borrowers rely on small-ticket gold loans to meet urgent personal or business needs.
The Finance Ministry noted that the new guidelines may take time to implement effectively on the ground. That’s why the Department of Financial Services (DFS) has recommended that the RBI roll out the new rules from January 1, 2026. To safeguard small borrowers, the ministry has also proposed exempting loans below Rs 2 lakh from these new requirements. This move is aimed at ensuring quicker and hassle-free disbursal of small gold loans.
The Finance Ministry has expressed hope that the central bank will carefully consider public suggestions and concerns raised by various stakeholders before finalising the rules. (With ANI Inputs)
