Gold price fall triggers margin calls on bullet loans

A notable decline in gold prices has triggered margin calls on bullet-repayment gold loans, increasing loan-to-value ratios for lenders. Loans structured with regular EMIs remain largely insulated from the recent price correction, which was driven by geopolitical tensions and rate concerns. New RBI norms and a market shift toward EMI-based products are expected to reduce such asset-side risks for gold loan financiers going forward.