CURRENT AFFAIRS

Detailed explanation-1: -7.3 The exposure of a bank to a single NBFC which is predominantly engaged in lending against collateral of gold jewellery (i.e. such loans comprising 50 per cent or more of their financial assets), shall not exceed 7.5 per cent of the bank’s capital funds (Tier I plus Tier II Capital).

Detailed explanation-2: -2.00 lakh subject to the following conditions: (i) The period of the loan shall not exceed 12 months from the date of sanction. (ii) Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the end of 12 months from the date of sanction.

Detailed explanation-3: -The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests. NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.

Detailed explanation-4: -NBFCs which offer gold loans include Muthoot Finance, Manappuram Finance etc. What is the least and most you can borrow? The amount of money a person can borrow against a gold item varies depending on the lender. ICICI Bank, for example, offers gold loans ranging from Rs 10, 000 to Rs 1 crore.

Detailed explanation-5: -Since gold is collateral, most NBFCs do not require income proof when you apply for a gold loan.