Muthoot Finance Share Price Surges 8% After Government’s Move on Gold Loan Norms

Market Performance

On Friday, Muthoot Finance's share price soared over 8%, driven by positive regulatory news that could benefit small gold loan borrowers.

• Muthoot Finance shares climbed to an intraday high of ₹2,243 on the NSE, marking an 8.6% increase.
• Manappuram Finance followed with a 3.71% increase, reaching ₹ 240.40 per share.
• IIFL Finance also rose by 2.6%, hitting ₹438.75 per share.

The broader financial services segment experienced a boost after the Finance Ministry intervened to advocate for small-ticket borrowers in gold loan markets.

Main News: Govt Backs Small Gold Loan Borrowers

The significant rise in Muthoot Finance's share price came after the Finance Ministry took a stand in favor of borrowers availing small gold loans. Through a social media post, the ministry announced that it had reviewed the Reserve Bank of India's draft guidelines on gold loans and raised concerns regarding their impact on loans up to ₹2 lakh.

Key updates from the government:

• Suggested that small-ticket borrowers be excluded from the proposed new regulations.
• Emphasized the need for "timely and speedy disbursement" of gold loans to these borrowers.
• Recommended implementing the draft guidelines starting January 2026 to allow a smoother transition.

Company Details: Muthoot Finance in Focus

Muthoot Finance Ltd., a leading gold loan provider in India, found its shares rallying on news that potentially safeguards  — especially those seeking credit of ₹2 lakh or less.

The government's intervention is seen as a measure to prevent disruption in loan disbursements to small borrowers.

Summary of the Article

• Muthoot Finance's share price jumped 8.6% on the NSE amid policy support.
• The Finance Ministry raised concerns over the RBI's draft norms for gold loans.
• Recommendations include excluding loans up to ₹2 lakh from the new rules.
• Implementation of norms is advised to begin from January 2026.