People in search of loan beside bullion jewellery can now have a loan of more, as the Reserve Bank on Wednesday acceptable NBFCs to let somebody use up to 75 per cent of the price of metal from 60 per cent at here.
"...it has been determined to hoist the LTV ( Loan-To-Value) ratio to up to 75 per cent for loans alongside the security of gold jewellery from the here border of 60 per cent with abrupt outcome," the RBI said.
This, it said, has been done in vision of the restraint in the expansion of bullion finance portfolios of Non-Banking Financial Companies (NBFCs) in the fresh past.
The RBI additional said the price of the jewellery for the rationale of determining the utmost allowable lend sum will be only the basic cost of the gold comfortable therein and no other cost elements (like making charges) should be extra thereto.