NEWS & ADVICE : PERSONAL LOAN
RBI panel suggests stricter norm for gold loan firms
By Vaibhav Aggarwal
Jan 3, 2013
Print    Email    RSS   

A panel of the Reserve Bank of India ha suggested various measures to make the gold finance sector more transparent while doing business. This is done to check the mushrooming of gold finance companies.

RBI has set up a group under the chairmanship of Mr. K U B Rao, a senior executive to study issues related to gold and gold loans by non-banking finance companies (NBFCs). The draft report has been published on the RBI website for suggestions.

The gold loan companies should consider only the price of gold and not the jewellery making charges and other taxes in determining the value of the gold. Presently, different NBFCs have different methods to arrive at the value of pledged gold.

The gold loan companies should increase Loan to value ratio (LTV) cap to 75% from existing 60%. They should also standardize the circulation of ‘value' in LTV.

Loans above Rs 2 lakh should be given by cheque and a copy of the PAN card of the borrower obtained.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Bankers concerned on RBI loan recovery...
Carnival of Indian Personal Finance Blogs #2
Some admissible deductions under Income...
Carnival of Indian Personal Finance Blogs #3
Do rising NPAs reflect an ailing banking...


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive