*Gold Loan Shakeup* 🏅📊🚨 Department of Financial Services (DFS) has recommended significant _*relief for borrowers taking gold loans under ₹2 lakh*_, alongside a delayed rollout of RBI's new draft guidelines on gold lending. This development comes amidst _*concerns from various stakeholders, particularly in rural areas*_, about the potential impact of the proposed norms. 👀 This might be _*crucial for small and marginal farmers, tenant cultivators, and those in allied agricultural sectors*_ who often rely on gold-backed loans as a quick and accessible source of short-term credit. 🌽 BUT The DFS also recommended _*a delayed implementation of the new guidelines*_. This tells the government is taking into account the feedback and potential disruptions highlighted by various sectors. ✅ *So what are the concerns?* 🤔 _*RBI wants to cap the "Loan-to-Value" (LTV) at 75%. This means you can borrow only up to 75% of your gold's value*_. During the pandemic, it was temporarily higher (80%), so this is a reduction. For loans where you pay everything back at once at the end (bullet repayment), the interest will also be counted in the 75% limit, meaning _*you'll get even less money upfront for the same amount of gold*_. 👀