Gold Loans in India: A Lifeline or a Risk? In times of financial need, many Indian families turn to something they've trusted for generations — gold. Whether it’s a medical emergency, school fees, or small business support, pledging gold ornaments is often the fastest way to get a loan. But with gold prices hitting record highs and loan defaults on the rise, the RBI has stepped in with new draft rules to make gold-backed lending safer and more transparent. Key changes include: 🔹 Capping loan-to-value at 75% 🔹 Certified gold valuation methods 🔹 Limits on how much gold can be pledged 🔹 Clear auction and repayment rules The Finance Ministry, responding to concerns raised by states like Tamil Nadu, has proposed: ✅ Exempting loans under ₹2 lakh ✅ Delaying new rules till Jan 1, 2026 👉 Gold loans are more than just credit — they are deeply tied to emotion, culture, and survival in many Indian households. Regulation is necessary, but must be balanced with empathy. Read more on why smart regulation, not strict control, is the way forward for India’s gold loan sector. Read in English: https://www.dhyeyaias.com/current-affairs/daily-current-affairs/socio-economic-significance-gold-loans-india-financial-inclusion-risks Read in Hindi: https://www.dhyeyaias.com/hi/current-affairs/daily-current-affairs/socio-economic-significance-gold-loans-india-financial-inclusion-risks #goldloan #rbi #financialinclusion #indiaeconomy #goldinindia #creditaccess #rbiguidelines #policymatters #socialfinance #economicsecurity