South Indian Bank’s gold loan growth to slow on new RBI norms, volatile prices

The new framework, effective from April 1, requires lenders to classify gold loans as “income-producing” or “consumptive”; The ceiling of the second one is as follows: ₹2.5 lakhs. The norms also tighten loan-to-value (LTV) ratios, impose stricter verification requirements, set 12-month limits on upfront payments and set timelines for return and auction of gold collateral.