RBI's new rules for gold loans allow people to avail loan on up to 85% of gold value
RBI released new rules for gold loans worth up to ₹5 lakh. They dictate that borrowers can now get loans equal to 85% of pledged gold/silver's value. Additionally, value/weight of precious stones/gems part of gold/silver jewellery won't be added to collateral's valuation. Lenders are also allowed to deny loaning money using gold/silver as collateral if their ownership is doubtful.