Gold loan issue: RBI Thunderbolt on Gold Loan

Gold Loan Issue: Banks have made significant changes in gold lending in Telugu states. At the behest of the RBI, the loan payment period was limited to one year. It is decided that the loan taken should be repaid within a year. The borrowers are facing problems on the impact on the payment of gold loans.

What is happening…

RBI received a complaint long ago that gold loans were given in urban areas in the Agriculture Department. The gold loan limit for agricultural purposes was given within a year. These loans were given for low interest and gold was provided for agricultural work.

Loans on gold were also beneficial for banks. After crop crops, it has been a long time to issue loans for low interest loans. It has been a profitable business for banks for many years.

Gold reserves in banks have increased …

With low interest in banks, gold debt has increased. Regardless of agricultural functions in urban areas, these agrigold loans have increased. For this, gold reserves have started in bank lockers. The RBI has made it clear that the gold loan should not be renewed for a year several years ago. After that, RBI was fined for all public private banks who did not rule for the attitude of banks earlier.

Last December, RBI made public sector banks clear to implement previous provisions. These rules have been punished for loans given to banks and their branches. With RBI punishment, a ban on gold loans has begun. The ban on gold loans has started since last January.

Debt on the same gold …

In the past, another loan was generated on the same gold, renewing the gold loan. The old loan amount was deposited in the original and collected from the creditor. In doing so, banks will never be paid interest to banks. Currently banks are not allowing it. Instead, another loan is being given to wife or husband in the family on the same gold. Only some banks allow it.

RBI major rules…

• The RBI has banned the renewal of gold loans with the intention of damaging banks’ business activities. The RBI has banned the grant of new loans to meet the old man in hostage.
• Banks have come to know why they are taking gold loans.
• Land documents are to be uploaded on gold loans beyond millions of rupees issued for agriculture. You have to prove that loan is for agriculture.
• The RBI has warned banks that there will be heavy punishment on banks that do not follow the guidelines.