<ul><li>The Reserve Bank of India's fresh draft guidelines on gold loans will reduce regulatory uncertainty and variability in lender compliance; however, Fitch Ratings believes that some changes could raise operational complexity for lenders.</li><li>Large non-bank lenders such as Muthoot Finance and Manappuram Finance are expected to adjust to the new requirements.</li><li>The proposed rules may necessitate additional procedures, such as assessing borrower income, prolonging loan turnaround times, and increasing operational expenses.</li><li>The loan-to-value limit of 75% for non-banking financial companies (NBFCs) will strengthen the financial buffer, but it may reduce the product's attractiveness to borrowers.</li></ul>

Draft Gold Loan Norms May Hurt Operations But Large Lenders Are Well Placed, Says Fitch

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