Loan against Sovereign Gold Bonds allowed as collateral, subject to lender discretion and RBI-prescribed loan-to-value limits. Sovereign Gold Bonds may be used as collateral for loans by marking lien on the Bonds; the loan-to-value ratio applicable to ordinary gold loans as mandated by the Reserve Bank of India applies to such loans, and granting credit is subject to the discretion and lending policy of the bank or financing agency rather than a borrower's entitlement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Loan against Sovereign Gold Bonds allowed as collateral, subject to lender discretion and RBI-prescribed loan-to-value limits.
Sovereign Gold Bonds may be used as collateral for loans by marking lien on the Bonds; the loan-to-value ratio applicable to ordinary gold loans as mandated by the Reserve Bank of India applies to such loans, and granting credit is subject to the discretion and lending policy of the bank or financing agency rather than a borrower's entitlement.
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