Some lenders are resorting to certain unfair practices in charging interest rates such as charged interest on loans from the date of sanctioning or execution of the loan agreement rather than from the date of disbursement.
Gold loan stocks rally after RBI hikes loan-to-value ratio limit and eases small loan norms
Gold loan stocks surged 2–7% after RBI raised the LTV ratio on loans under ₹2.5 lakh to 85%. Simplified norms reduce compliance burden, aiding lenders