National News
Renewing A Gold Loan? Falling Gold Prices Could Cost You Big
Lenders Value Your Gold Using Recent Market Prices (Based On The Lower Of The 30-Day Average Price Or The Previous Day’s Closing Price) Gold Prices Fall Significantly, Your Loan Might Exceed The Allowed LTV Limit.
Renewing a gold loan seems like an easy fix when your payment is due and you don’t have enough cash to close the loan. However, if gold prices drop, renewing might cost you more than you expect.
How Falling Gold Prices Affect Your Loan
The maximum amount you can borrow depends on the current market value of your pledged gold. The Reserve Bank of India (RBI) sets strict Loan-to-Value (LTV) limits:
- Up to Rs 2.5 lakh: You can borrow up to 85% of your gold’s value.
- Rs 2.5 lakh to Rs 5 lakh: Up to 80%.
- Above Rs 5 lakh: Up to 75%.
You must maintain these limits throughout the loan. When gold prices fall, the value of your pledged gold drops, but your debt stays the same. This increases your LTV ratio.
Example: Suppose your pledged gold was originally worth Rs 8 lakh and you borrowed Rs 5 lakh. If the market value of your gold drops to Rs 6.5 lakh, your Rs 5 lakh debt now takes up a much higher percentage of your gold’s worth.
Important Things to Know Before Renewing
- Renewal is not debt freedom: Renewing simply extends your debt. You will still owe interest, processing fees, and renewal charges under the new agreement.
- Gold will be revalued: Lenders value your gold using recent market prices (based on the lower of the 30-day average price or the previous day’s closing price).
- You may need extra cash or extra gold: If gold prices fall significantly, your loan might exceed the allowed LTV limit. The lender can ask you to pay off a portion of the loan in cash or provide additional gold as security to bring the ratio back into balance.
- Risk of losing your gold: If you cannot pay the required difference or fail to clear the debt, the lender has the legal right to auction off your pledged jewellery after sending you a notice.
Checklist for Borrowers
Before renewing a gold loan, make sure to check:
- The total amount owed: Calculate all current dues, new interest rates, and renewal fees.
- Cumulative cost: If you have renewed the loan multiple times, calculate how much total interest and fees you have paid so far.
- Repayment plan: Ensure you can realistically repay the full amount within the new loan period.
- Backup savings: Keep some cash set aside in case gold prices drop further and the bank asks for an immediate partial payment.
Do not look only at whether the lender is willing to extend your loan. Always consider your gold’s updated value, total borrowing costs, and your ability to pay back the money before signing a renewal.
National News
Every Day, A New Story: Mia By Tanishq Reimagines Billboard Advertising With Its ‘Precious, Every Day’ Calendar
The Brand Brings A Billboard That Turns A New Page Every Night To Bengaluru and Mumbai, Offering A Reminder That You Don’t Need To Wait For An Occasion To Wear Something Precious
What if a billboard had a new story to tell every single day? Mia by Tanishq, one of India’s leading contemporary fine jewellery brands, has transformed a billboard into a giant calendar that flips to a new page every night, each one pairing a new Mia piece with a line that finds something precious in that day of the week. The installation is on a 30-day run at the Domlur flyover gantry heading into Indiranagar in Bengaluru, following a week-long run on Mumbai’s Western Express Highway. At its heart is a simple insight: women often celebrate the people and milestones around them but hold back when it comes to celebrating themselves. Mia’s answer: you can be the occasion.
Last year, Mia’s calendar-themed billboard showcased a different jewellery piece in each date square. This edition takes the idea further. Each night, one of 30 calendar pages is physically turned to reveal a fresh line and a new Mia piece, while the Mia logo and ‘Precious, Every Day’ stay fixed. Commuters who pass the same stretch every morning find something new waiting for them.
The campaign reflects how jewellery has become an expression of mood and self-appreciation, not something kept only for gifting or festivities. A Monday page pairs Mia’s Blue Rhythm gold stud earrings, set with blue sapphires, with the line “The only Monday blues worth having,” turning the most dreaded day of the week into a playful one. Wednesday highlights personal victories with “Midweek? Stack your rings like your wins,” while Saturday encourages women to embrace the present with “Step out in the necklace you’ve been saving for ‘some’ day.” Each line starts with how a day already feels, from the Monday slump to the midweek push, and turns it into a reason to wear something precious.
Commenting on the campaign, Ajay Maurya, Head of Marketing and Category, Mia by Tanishq, said:
“More and more women are choosing jewellery for themselves, without waiting for a reason. These are not new behaviours we are trying to create, but everyday realities we are reflecting. A woman may simply feel good about herself and choose a piece of jewellery to mark it. With the ‘Precious, Every Day’ calendar, we wanted to bring that thought to the place where everyday life happens, the daily commute. A page that changes overnight gives people a small reason to look up, and a reminder that there is something precious in every day.”
With the ‘Precious, Every Day’ calendar, Mia by Tanishq turns a familiar outdoor format into a story told one page at a time, reminding women that the most precious moments are often the ones they choose for themselves. The activation was executed in partnership with Platinum Outdoor and Madison World.
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