New Delhi, June 9 -- On 6 June the Reserve Bank of India released its final guidelines on loans against gold and silver collateral.

Based on feedback from the industry and the government's department of financial services, the final norms are easier than the previously proposed draft norms. They include a higher loan-to-value (LTV) ratio for small-ticket loans and don't require credit appraisal for such loans.

The deadline to implement these guidelines has also been extended to April 2026. Mint takes a look at what it means for lenders and borrowers.

The final guidelines on these loans, much like the draft norms, look to classify them based on their purpose. The RBI has detailed two broad categories- 'income-generating loans', which ar...