The move on IIFL came after RBI inspected the financial position of the company as on March 31, 2023
The fine has been imposed for non-compliance with certain directions issued by the RBI on KYC, 'Loans and Advances – Statutory and Other Restriction
PNB is also offering a complete waiver of service charges and processing fee on loans against gold jewellery and SGB
According to Crisil Ratings, demand for gold loans from micro-businesses and individuals to fund working capital and personal needs has surged.
Amid the Covid-19 pandemic, demand for gold loans zoomed as households increased pledging of their gold holdings, mostly jewellery.
While lenders tend to give a gold loan up to 75% of the total metal value, it can inch as high as 80-85% in case of falling prices.
Gold loans: State Bank of India and Indian Bank are currently offering gold loans at an interest rate of 7.50% per annum.
Gold loans: NPA and gold price fluctuations are two major obstacles in the growth trajectory, feel experts.
Personal loan is usually disbursed within 24 hours while gold loan takes time as it involves the bank officials valuing the collateral first
Gold loan offers greater flexibility in terms of loan repayment. Apart from EMI repayment mode, borrowers can opt for customised payment option