RBI adds glitter to gold, allows 90% loans against jewellery till Mar 2021

At present, loans sanctioned by banks against pledge of gold ornaments and jewellery is up to 75% of the value of such items

The Reserve Bank of India on Thursday added additional shine to gold ornaments and jewellery by allowing banks to give loans up to 90 per cent of the value of such items pledged by borrowers.

At present, loans sanctioned by banks against pledge of gold ornaments and jewellery is up to 75 per cent of the value of such items.

The additional loan against jewellery is expected to mitigate the economic impact of the Covid-19 pandemic on households, entrepreneurs and small businesses and help them tide over their temporary liquidity mismatches.