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RBI monetary policy: Gold Loan firms seek parity with banks on LTV

The RBI increased from 75 per cent to 90 per cent the permissible loan-to-value ratio (LTV) for banks to give loans against pledge of gold ornaments and jewellery for non-agricultural purposes

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The Association of Gold Loan Companies ( AGLOC) held an emergency meeting and said the measure would fail to have an impact in the absence of parity in the applicable LTV

Abhijit Lele Mumbai

1 min read Last Updated : Aug 07 2020 | 2:02 AM IST

Gold loan firms such as Muthoot and Manappuram on Thursday demanded parity with banks that have been allowed to lend up to 90 per cent of the value of collateral.

The RBI increased from 75 per cent to 90 per cent the permissible loan-to-value ratio (LTV) for banks to give loans against pledge of gold ornaments and jewellery for non-agricultural purposes. The Association of Gold Loan Companies ( AGLOC) held an emergency meeting and said the measure would fail to have an impact in the absence of parity in the applicable LTV.

AGLOC Vice-Chairman Thomas George Muthoot said the member companies played

Topics : gold loans RBI monetary policy Reserve Bank of India RBI

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