Gold Loan Borrowers Alert: 4 Budget Updates Could Transform Your Finances

• Union Budget 2026 presents a critical opportunity to enhance financial inclusion and credit growth in India.
• Proposes extending Priority Sector Lending (PSL) status to eligible gold loan NBFCs to lower borrowing costs and expand credit access.
• Suggests introducing gold-linked credit lines via UPI, enabling instant, cheaper credit access compared to unsecured cards.
• Recommends aligning exposure limits for gold loan NBFCs with other NBFCs to improve capital deployment efficiency.
• Advocates for simplifying TDS norms and offering higher interest rates on NCDs to encourage retail investment and household savings.

Why It Matters: Upcoming Budget 2026 proposals aim to make gold loans cheaper and more accessible, boosting financial inclusion.