Gold Loan

Retail NBFCs like Bajaj Finance, Muthoot and Shriram Finance are expanding faster than banks, led by strong demand in gold loans, vehicles and housing finance, analysts say

RBI's new gold metal loan rules allow banks to lend to a wider set of jewellers, refine GMS-linked lending and enforce stronger risk controls, with the norms effective April 2026

In Q2FY26, Muthoot Finance's consolidated loan AUM increased by 42 percent from last year to Rs 1.47 trillion, while its gold Loan AUM increased by 45 percent from the year-ago quarter to Rs 1.24 trn

Gold loans offer structure, overdrafts offer flexibility. Here's how to pick the smarter way to borrow against your gold.

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With the revised rules, lenders can now extend working capital loans to any business that relies on gold as a raw material, expanding credit access beyond the jewellery sector

Muthoot Finance reported strong Q1FY26 results with 42% YoY AUM growth, improved asset quality, higher yields and strong recoveries as gold loans drove profitability

Muthoot Finance plans to invest Rs 200 crore in its housing finance subsidiary, Muthoot Homefin, for growth, as the home loan arm's assets under management rise 41% in Q1 FY26

RBI clarifies that loans sanctioned by banks against voluntary pledges of gold and silver, up to the collateral-free limit, do not violate the central bank's guidelines on collateral

The RBI's new rules on lending against gold will lead to business model adjustment, and operational agility, service excellence will remain the key differentiator between lenders, S&P Global Ratings said on Thursday. Earlier this month, the RBI raised the loan-to-value (LTV) ratio for lending against gold to 85 per cent for borrowings under Rs 2.5 lakh from the present 75 per cent. The LTV ratio has been fixed at 80 per cent for loan amounts between Rs 2.5-5 lakh and 75 per cent for loans above Rs 5 lakh. Lenders have time until April 1, 2026, to prepare for the changes. In its report titled 'India's new rules on gold-backed loans may reshape the competitive landscape', S&P said the Reserve Bank of India's new rules on gold-backed loans will likely lead to business model adjustments in the country's booming lending niche. "In our view, operational agility and service excellence will remain the key differentiator between lenders," S&P said. S&P Global Ratings credit ...

RBI's revised gold loan norms to benefit NBFCs by raising LTV ceilings, providing better cushions for bullet loans and expanding lending headroom

Bank of Maharashtra cuts retail loan rates by up to 50 bps; Bank of Baroda trims MCLR on select tenors with effect from 12 June as banks align with RBI move

Easy access should not lead to overleveraging; beware that deferred repayment can increase interest burden

DFS suggests exemption for borrowers under ₹2 lakh from RBI's proposed gold loan norms, with implementation timeline set for January 2026

In April, the RBI released draft norms mandating, among other requirements, that borrowers furnish proof of ownership for the gold used as collateral

Gold loan growth rises 119.6% YoY to Rs 2.23 trillion in April 2025; RBI data shows slowdown in retail and NBFC credit growth despite robust rise in gold-backed lending

In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers

The draft guidelines propose that the loan-to-value (LTV) ratio be maintained within a ceiling of 75 per cent throughout the loan tenure, including both principal and accrued interest

Gold loan financier Muthoot Finance on Monday said its board has approved an interim dividend of Rs 26 per share ahead of their quarterly numbers for the fourth quarter of FY25. The board on Monday considered and approved the payment of an interim dividend of Rs 26 per equity share or 260 per cent of the face value of Rs 10 per share for the financial year 2024-25, Muthoot Finance said in a regulatory filing. Besides, it recommended for approval of the shareholders, an increase in the borrowing powers of the Board of Directors for an amount up to Rs 2 lakh crore, it added. The board also approved the appointment of George Joseph as an independent Director of the company. The proposals are subject to shareholders' approval, it added.

Banks, NBFCs need to adopt standardised documentation across all branches