News on Medial

Gold loan risks: RBI exposes irregularities, borrowers beware

Money ControlMoney Control Ā· 2m
Gold loan risks: RBI exposes irregularities, borrowers beware

- The Reserve Bank of India (RBI) has identified irregularities in granting gold loans, including lack of transparency during auction on default and inadequate due diligence. - The gold loan segment has experienced significant growth, with public sector banks accounting for a majority of the loans in recent years. - Borrowers should conduct research and verification, understand loan terms, and be aware of red flags when availing gold loans. - Essential precautions to take include studying loan offers, comparing interest rates and charges, and being cautious of unsolicited offers with hidden terms. - Lenders have been given three months to review their policies and practices related to gold loans and take corrective measures. Non-compliance may result in supervisory action from the RBI.

Comments

Download the medial app to read full posts, comements and news.