Lenders cancel on draft guidelines for gold loans to RBI

Se rumorea que lenders han expresado sus inquietudes a la Reserve Bank of India (RBI) respecto a las preliminares directrices sobre lending against collateral de gold. Desde fuentes, se espera que estas directrices influyan en las finanzas de los lenders. Además, la industria teme que esto podría causar retrasos en los disbursements, finalizando los programas de disbursement de 15 minutos de oro. "The eficacia y rápido retorno de créditos que el sector ha conseguido lograr en los últimos 4 - 5 años, si se cumplen con los preestablecidos estándares," declaró a director ejecutivo de una entidad financiera que prefirió no revelarse. También se ha solicitado a la central bancaria que revise algunas directrices sobre estas líneas antes de emitir las normas finales, según fuentes. "The RBI's draft rules demand lenders to complete all the documentation preliminary antes de sanctioning loans." Anteriormente, existía cierta flexibilidad en cuanto a la subscripción. "These entidades financieras temen que esto pueda incrementar el tiempo requerido para el procedimiento," declaró another fuente. The Reserve Bank of India (RBI) has recently proposed stricter guidelines for gold-backed loans, which have raised concerns within the lending sector. One of the key proposals includes a cap on the loan-to-value (LTV) ratio, limiting it to 75%. This means that lenders can only extend a loan amount equal to 75% of the value of the gold pledged as collateral. The goal is to reduce the risk for lenders and promote more responsible lending practices, but it has sparked concerns about its potential impact on loan volumes and access to credit, especially for small borrowers. In addition to the LTV cap, the RBI’s draft rules propose the standardization of documentation procedures. Lenders will be required to follow uniform formats for gold valuation certificates and loan agreements, which include detailed information on the purity, weight, and deductions for non-metallic components. This move is aimed at ensuring transparency in the valuation process. However, the added paperwork and documentation could lead to longer processing times for loans, which raises concerns for lenders who have become accustomed to quick disbursements, especially the 15-minute disbursement programs that have become popular in the sector. The draft also includes the requirement for lenders to evaluate the borrower’s cash flow before sanctioning loans. This change is expected to add complexity to the loan approval process, as lenders will need to gather and verify detailed financial information from borrowers. While this is intended to assess the borrower’s ability to repay the loan, the increased documentation and evaluation steps may slow down the loan processing times, potentially affecting the speed and efficiency of gold loan disbursements. Industry players have voiced concerns over the new regulations, fearing that the increased documentation requirements and the tighter LTV ratio could lead to delays and higher operational costs. Some lenders have requested the RBI to reconsider certain aspects of the draft before finalizing the rules, particularly with regard to the impact on loan processing times. While the RBI’s intentions are to ensure greater transparency and risk mitigation, it is crucial to strike a balance that does not hinder the efficiency of the sector or reduce the availability of quick credit for borrowers.