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HindustanTimes Mon,20 Oct 2014

Pawned gold? don’t worry

None  Mumbai, April 15, 2013
First Published: 22:03 IST(15/4/2013) | Last Updated: 22:04 IST(15/4/2013)

Borrowers who have taken loans from gold loan companies or banks by pledging the yellow metal need not worry as the risk of falling gold prices will be borne by the lenders.  

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“There will be no change in the terms and conditions for the existing customers and the lender,” said Padma Kumar, executive director, Muthoot Finance, the largest gold loan company in India.

“It is a clear case of business risk. So lenders will have to bear the loss if prices correct sharply,” said an analyst with a brokerage firm that tracks gold.


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