Mumbai: In his bi-monthly monetary policy address on Thursday, Reserve Bank of India (RBI) Governor Shaktikanta Das announced easing of gold loan guidelines - a move that will enable lenders to give out more loan against jewellery.
As per the latest guidelines, loans against gold have been upped to 90 percent, as opposed to previously fixed 75 percent, of the value of the precious metal. The decision has been taken in the view of the Covid-19 and to mitigate its impact, the RBI governor stated.
Gold-backed loans are gaining traction, becoming more popular with banks amid the Covid-19 crisis.
The yellow metal has traditionally been regarded as a safer mode of investment and borrowing as opposed to other options.
Asianet.in/Desk: Asianet Online