Uniform norm for gold jewellery valuation as loan collateral

Gold loan are very helpful to people if they need cash on urgent bases.There are some special banks like muthoot and RBI that give loans on gold according to the carrats and weight of that particular gold jewellery from they also charge int. monthly.
By: Jewelsnext
 
NAVI MUMBAI, India - Jan. 27, 2014 - PRLog -- MUMBAI: The Reserve Bank today came out with standardised norms for valuation of gold jewellery as collateral for loan from banks.

"In order to standardise the valuation and make it more transparent to the borrower, it has been decided that gold jewellery accepted as security/collateral will have to be valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India Bullion and Jewellers Association Ltd," RBI said in a statement.

"If the gold is of purity less than 22 carats, the bank should translate the collateral into 22 carat and value the exact grams of the collateral. In other words, jewellery of lower purity of gold should be valued proportionately," it said.

The Muthoot Gold loan Finance is the largest in India as well as all around the globe. It is humbling to know that more than 80,000 people avail our trusted services on a daily basis. For the past 126 years, the company has been serving the interests of customers as its top most priority. A rapidly growing company highlights the trust and commitment that our customers worldwide.

Banks should continue to observe necessary and usual safeguards and also have a suitable policy for lending against gold jewellery with the approval of their board of directors, RBI said.

Earlier this month, RBI had raised loan to value ratio to 75 per cent from 60 per cent earlier. [http://www.jewelsnext.com/shop/index.php]
This was in view of moderation in the growth of gold loan portfolios of Non-Banking Financial Companies (NBFCs) in the recent past.

Contact
Garima Sharma
***@jewelsnext.com
01148484949
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