Even after the Reserve Bank of India (RBI) introduces its new gold loan rules, people taking small gold loans will not be affected. The Ministry of Finance shared this information on its social media accounts.
In a post dated May 30, the ministry said the government has reviewed RBI’s draft guidelines on gold loans and has informed the RBI that borrowers taking loans up to ₹2 lakh should not face any trouble because of the new rules.
After this post, shares of gold loan companies like Muthoot Finance and Manappuram Finance rose.
New Gold Loan Rules May Begin from January 1
RBI’s new rules for gold loans may be implemented from January 1, 2026. The Finance Ministry said in its post, “@DFS_India has told @RBI that small gold loan borrowers should not face problems.
These rules need proper implementation at the ground level. That’s why it would be better to start them from January 1, 2026.”
The Department of Financial Services (DFS), under the Finance Ministry, also recommended that people taking small gold loans should be kept out of the new rules. This will help them get loans more easily.
RBI Reviewing Feedback on the Guidelines
The Finance Ministry said that RBI is going through the feedback it received on the draft gold loan guidelines.
It is expected that RBI will prepare the final rules only after taking advice from all concerned parties.
RBI had released the draft guidelines on April 9 to improve the existing gold loan system.
The draft includes steps like better underwriting, stronger collateral management, and improved tracking of how the borrowed money is used.
New Rules May Slow Gold Loan Growth
A person linked to the gold loan sector, who didn’t want to be named, said that the RBI’s draft guidelines require gold loan companies to complete full underwriting before giving loans.
Currently, underwriting is often not done properly. Gold loan companies believe this rule could increase the time it takes to give out loans.
Recently, Crisil reported that RBI’s new rules might slow down the growth of gold loan companies’ businesses.
Gold Loan Company Shares Jump
On May 30, Muthoot Finance’s shares jumped sharply. By afternoon, the stock was up 7.4% at ₹2,219.
Manappuram Finance’s share also increased by 3.88% and was trading at ₹240.88.
