A significant drop in gold prices has led to margin calls on some gold loans, particularly those with bullet repayments. Loans requiring regular monthly installments are largely unaffected. The recent price correction, driven by geopolitical events and interest rate concerns, has reduced the value of pledged gold, increasing loan-to-value ratios. New RBI regulations and a shift towards EMI-based loans are expected to mitigate future risks for lenders.
A significant drop in gold prices has led to margin calls on certain gold loans, particularly those with bullet repayments. This correction, driven by geopolitical events and interest rate concerns, has reduced the value of pledged gold and increased loan-to-value ratios. New…
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