<ul><li>The Reserve Bank of India allows lenders to offer gold loans, primarily availed by individuals with no formal income documentation such as street vendors and micro-entrepreneurs.</li><li>RBI's proposed changes to gold loan norms include calculating loan-to-value ratio based on total amount repayable, leading to a reduced disbursable loan amount and stricter credit appraisal processes.</li><li>Tamil Nadu Chief Minister MK Stalin opposes the proposed restrictions, stating that gold loans are crucial for the rural credit delivery system supporting small farmers and allied sectors.</li><li>The gold loan industry seeks relaxation in certain provisions, arguing that the proposed changes may slow down lending and increase operating costs, potentially impacting the growth of non-banking financial companies focused on gold loans.</li></ul>

BL Explainer: Why the fuss over RBI’s proposed gold loans norms?

Discover more