How RBI Policies Influence Gold Loan Interest Rates
Gold loans have become one of the most preferred borrowing options in India because they offer quick access to funds with simple documentation. Since the loan is backed by gold jewellery as collateral, lenders consider it less risky than unsecured loans. However, many borrowers often wonder why the Gold Loan Interest Rate offered by one lender differs from that of another, or why rates change over time. One of the biggest influences behind these changes is the Reserve Bank of India (RBI). While the RBI does not directly decide the interest rate that every bank must charge on gold loans,
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