Mortgage loan ceiling of Rs 50 lakhs for gold and silver

Rastra Bank has established a lending ceiling of Rs. 50 lakh per borrower for mortgage loans against gold and silver. The National Bank has set a single customer credit limit of 50 lakhs for mortgage loans on gold and silver in accordance with the amended Integrated Directive, 2080, which was granted to banks and financial institutions falling under the "A," "B," and "C" categories.

Furthermore, in the event of loans that have already been disbursed, the National Bank has mandated that the single customer credit limit be set by the end of June 2083.

As per Rashtra Bank, prior to granting a mortgage loan secured by gold or silver, the borrower must ensure the safety of the loan by inspecting the gold or silver provided as collateral. The gold or silver that the borrower provided as security should be kept in a single bag during this process of disbursing the loan.

According to Rashtra Bank, 100% loan loss should be arranged for any loan where more than one bag provided by the debtor, one bag held as collateral, or a gold and silver collateral loan given without first passing the gold and silver test.