Gold Price Fall Triggers Margin Calls On Bullet Gold Loans
Economic Times
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.
With the new gold loan framework taking effect from April 1, non-bank lenders have begun shifting towards EMI-based products.
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