RBI Gold and Silver Loan Directions 2025: Key Rules
Why in the news
RBI issued unified directions to bring consistency to loans secured by gold and silver across lenders.
Key facts
- Max LTV: up to 85% for loans up to ₹2.5 lakh, helping small-ticket borrowers.
- Applicability: NBFCs, commercial banks, cooperative banks and urban cooperative banks.
- Eligible collateral: gold jewellery, ornaments and coins.
- Valuation: assaying before the borrower; prices benchmarked to IBJA or SEBI-regulated exchanges.
Significance
- Better consumer protection via transparent valuation.
- Level playing field for banks, NBFCs and cooperative lenders.
- Wider financial inclusion through credit against household assets.
- Fewer ambiguities since earlier circulars are consolidated.
Exam angle
- Regulator: RBI; maximum LTV 85% for loans up to ₹2.5 lakh.
- Price reference: IBJA or SEBI-regulated exchanges.