No collateral damage: Finance ministry wants relief for small gold loans

May 31, 2025

The finance ministry has suggested the RBI to exempt small borrowers seeking loans below Rs 2 lakh from its draft directions on gold collateral lending, aiming for quicker disbursal. They also proposed implementing the rules from January 1, 2026, citing the need for field-level adjustments. This came after reviewing the RBI’s draft guidelines and considering stakeholder concerns.

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