Cashless Goldloan Microfinance NBFC in Punjab

Banks and NBFC (non-banking finance companies), especially #goldloan companies has allowed by RBI to provide loan up to 75 percent of the value of the gold jewellery since, Jan 2014. As per RBI, for the purpose of determining the maximum permissible loan amount, will be only the intrinsic value of the gold content therein, and no other cost elements, such as making charges, should be added thereto.

Ownership of Gold:

In view of the fact that it may not be possible for borrowers to produce receipts establishing ownership, especially when the jewellery has been inherited, the #RBI clarified that the ownership verification need not necessarily be through original receipts for the jewellery pledged.

For verification, a suitable document could be prepared to explain how the ownership was determined, particularly in cases where the #goldjewellery pledged by a borrower at any one time or cumulatively on loan outstanding is more than 20 gm. NBFCs have been directed to put in place an explicit policy in this regard.

Purity of Gold:

The certified purity at the base of #22carat shall be applied for determining the maximum permissible loan and the reserve price for #auction. The #NBFCs can, however, include suitable caveats to protect themselves against disputes on redemption.