Market Performance
Muthoot Finance and Manappuram Finance share prices maintained momentum on Monday, 9 June.
- 11:30 AM snapshot:
- Muthoot Finance — ₹2,540 (+3.8 %)
- Manappuram Finance — ₹253.25 (+2.3 %)
- 30-day run-up: Muthoot +14 %; Manappuram +10 %
Main News – RBI's Final Gold-Loan Guidelines
The Reserve Bank of India has published its definitive rulebook for gold lending, aiming at greater simplicity and borrower protection.
Key numbers at a glance
Loan Bucket | Fresh LTV Cap |
Up to ₹2.5 lakh | 85 % |
₹2.5 lakh – ₹5 lakh | 80 % |
Above ₹5 lakh | 75 % (unchanged) |
- Paperwork trimmed for smaller tickets—no credit checks required.
- End-use restrictions apply only when the loan qualifies as priority-sector lending.
- Renewals become stricter: interest must be cleared and a fresh credit check completed before any top-up.
- All charges—ranging from assaying to auction fees—must be spelled out in the loan contract.
- The deadline for full compliance is April 2026.
These norms apply to every regulated gold lender, including banks, small finance banks, and NBFCs.
Company Details
- Muthoot Finance
- India's largest pure-play gold financier.
- The increase to an 85% Loan-to-Value (LTV) ratio for sub-₹2.5 lakh loans could help Muthoot Finance attract a broader range of borrowers. However, it also warrants careful credit risk assessment to ensure asset quality remains stable.
- The outperformance of Muthoot Finance share prices underscores investor confidence in a uniform playing field.
- Manappuram Finance
- Gains from streamlined documentation for small loans and more transparent fee disclosure.
- Over the last month, the share prices of Manappuram Finance have moved in tandem with regulatory clarity.
Summary
The RBI's move to raise the LTV ceiling to 85% on small gold loans and enforce transparent, borrower-friendly norms has turbocharged sentiment in gold-loan NBFCs. The immediate market reaction—seen in the surge of Muthoot Finance and Manappuram Finance share prices—suggests that traders welcome the new parity between banks and non-banks. Compliance is scheduled for April 2026, providing lenders with ample time to adapt while maintaining growth momentum.
Leave A Comment?