Gold loans shine again, demand picks up in July as Covid cases decline

Gold loan NBFCs are seeing more competition in the gold loan business in the current financial year as the special allowance given by the Reserve Bank of India to banks to take an LTV (loan-to-value) exposure against gold loan was valid till March 31, 2021. Banks had witnessed a significant growth in gold loan business due to this special allowance. On the contrary, gold loan NBFCs are allowed an LTV exposure of 75% against gold loan.

from Banking/Finance-Industry-Economic Times https://ift.tt/3wFgdxR