Shares of gold loan companies rallied on Friday after the Ministry of Finance suggested changes to the Reserve Bank of India’s (RBI) draft guidelines on gold loans.

Muthoot Finance Ltd. led the gains, rising nearly 8.5% to an intraday high of ₹2,243.

Manappuram Finance Ltd. shares rose by up to 5%, while IIFL Finance Ltd. saw gains of over 2% during the session.

RBI’s draft directions on lending against gold and recommended that small-ticket borrowers, those availing loans of up to ₹2 lakh, be excluded from the proposed regulatory framework. The ministry added that these borrowers’ needs should not be adversely impacted and emphasized the importance of ensuring timely and efficient loan disbursements for them.

The draft guidelines, issued by the RBI on April 9, proposed a uniform and principle-based approach to gold loans, including stricter norms on underwriting, collateral management, and monitoring of fund usage. Among the key proposals was a cap on loan-to-value (LTV) ratios at 75% for all gold-backed loans.

The Department of Financial Services (DFS), under the guidance of Finance Minister Nirmala Sitharaman, stated that it had submitted suggestions to the RBI, proposing that the draft rules be implemented starting January 1, 2026. The ministry also noted that additional time would be necessary for implementation at the operational level.

According to the statement, the DFS recommendations aim to protect the interests of small borrowers, and the RBI is currently reviewing public and stakeholder feedback before finalizing the new norms.

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