MAM
Self-regulation is fine, but there is a need for govt backing: Parida
NEW DELHI: Even as it acknowledges the role of self-regulation in curbing misleading advertisements, the government feels there is a role for powerful execution backed by a government authority.
Consumer Affairs Ministry joint secretary Manoj Parida said that the Advertising Standards Council of India (ASCI) should have ex-officio members as part of its consumer complaint council meetings.
At the outset, Parida said an advertisement is one that ‘gives casual leave to human intelligence’. Addressing a round-table on the subject of misleading advertisements organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), he said the biggest problem in India was the low rate of literacy which resulted in the average consumer falling for any promises made through advertisements.
While he acknowledged the role of the ASCI, he said it was a ‘friendly organisation’ of a few business houses. He said this was why self-regulation had not worked very well. There is a need to create an army of ‘ad monitors’.
Even the courts have suggested setting up of an inter-ministerial committee for the purpose of checking misleading advertisements, he noted. He said the newly-formed inter-ministerial monitoring committee which is being constituted with the sole aim of monitoring misleading advertisements for protecting consumers could serve as the missing executive arm to ASCI. The committee will monitor misleading advertisement and unfair trade practices and suggest steps accordingly, he added.
He noted that one major lacuna in the Consumer Act was that it only gave judicial remedy and therefore many consumers did not complain as court processes take much longer and there is no consumer protection agency.
He also said there was need to put more money into creating consumer awareness.
Elaborating on the role of ASCI and its future plans, ASCI Chairman Partha Rakshit said the council had been working since 1985. Since the Information and Broadcasting Ministry had given it recognition for hearing complaints, any direction given by it through the ministry’s IMC also applied to non-members. The ASCI worked on the three principles of honesty, decency and fairness.
It was also incorrect to say that it only worked through friends since its Consumer Complaint Committees (CCC) had members of the civil society as well and the complaints were therefore heard by laymen. There were two CCC meets every week, each having around 14 members.
In any case, two-thirds of the advertisements that appeared in the media were given out by ASCI members, though he admitted that this may work out to just around ten per cent of the companies in the country. He claimed that there was 85 per cent compliance with ASCI directions. He stressed that ASCI does not always wait for complaints and also takes suo motu action and some ads are suspended even before telecast.
He said the bulk of countries around the world worked through self-regulation and India was no exception. Its 350 members included advertisers, advertising agencies, media and consultants.
He said there was need to obtain legal authority for enforcing compliance of ASCI decisions by the print media, since the Cable TV Networks Regulation Act 1995 took care of TV.
ASCI plans to cover print and social media (in internet) more extensively and Google and Yahoo had already come on board. It is also launching an online training programme on ASCI regulations targeted at young copywriters, agency executives and product managers in manufacturing/service companies.
Speaking on consumer rights and remedies with regard to misleading advertisements, Germany’s GIZ consumer policy & protection Ruth Anna Buettner said that misleading and unfair practices were a global phenomenon. She added that the purpose of regulation should be proper functioning of markets and protection of individual consumer, mainly his contractual rights. Worldwide there are two ways of enforcement, one via public authority the other via courts, both accompanied by self-regulation institutions.
Deliberating on the regulatory framework for misleading advertisements, Aazmeen Kasad and Law Practice Consultant owner Aazeen Kasad said that to keep a vigil on the increasing incidents of misleading advertisements, the Central Consumer Protection Council (CCPC), apex body for consumer protection in India, has recently decided to draft guidelines to safeguard consumer interest from false advertisements in the country and set up a sub-committee to suggest strategies to deal with celebrity endorsements.
FICCI FMCG Committee chairman & ITC ED Kurush Grant said all stakeholders – the NGOs and consumer forums, industry, self-regulatory body and the government – had unanimously agreed to work towards similar solution of empowering self-regulation. FICCI would work closely with ASCI and the Ministry of Consumer Affairs to tackle the menace caused by misleading advertisements.
Gold has evolved from a traditional family heritage to one of the most effective instruments for high-speed liquidity in the rapidly changing financial world of 2026. With 22K gold prices remaining stable at ₹14,440 per gram and 24K gold hitting ₹15,752 per gram as of February 21, 2026, the Indian gold market is seeing a historic increase. A rather small quantity of jewels can now unleash significant cash due to their increased worth.
Finding the best gold loan, however, takes more than simply visiting the closest branch because there are several banks and NBFCs (Non-Banking Financial Companies) vying for your business. It necessitates a strategic grasp of how lenders set their product prices. The cost of borrowing in 2026 is no longer a “one-size-fits-all” number; rather, it is a variable that depends on your loan amount, the state of the market, and particular regulation slabs. You may make sure that you leverage your gold holdings at the best gold loan interest rates by taking a methodical approach.
Recognise the Tiered LTV Framework for 2026
The Reserve Bank of India’s (RBI) introduction of tiered Loan-to-Value (LTV) criteria is one of the biggest changes. Depending on your unique financial needs, this policy directly affects which lender can provide you with the best gold loan.
The LTV limitations for 2026 are set up as follows:
- Loans up to ₹2.5 Lakh: 85% LTV eligibility
- Loans up to 80% LTV are eligible for those between ₹2.5 Lakh and ₹5 Lakh
- Loans over ₹5 lakh are eligible for up to 75% LTV
You must match your borrowing with these levels to determine the lowest gold loan interest rate. Because there is less risk involved, a lender may frequently give a cheaper rate for a 75% LTV plan than for an 85% LTV plan. Choosing a lower LTV bracket is a tried-and-true method to get the finest gold loan conditions if you don’t require the highest amount of cash on hand.
Compare the Offerings of Banks and NBFCs
The best gold loan is determined by your preference for quickness or cheaper cost. The service and pricing differences between ordinary banks and specialised gold lending NBFCs have grown.
Public and Private Banks: The interest rates on gold loans offered by public and private banks are often the lowest on the market, frequently beginning as low as 8.75% to 9.50% annually. Borrowers seeking a long-term or overdraft-like facility who already have a savings account will find it appropriate.
NBFCs: They are the industry leader in offering a genuine, rapid gold loan experience, even if their interest rates may be a little higher than those of banks. They are frequently the best gold loan option for urgent needs when speed surpasses a 1% yearly cost difference, thanks to doorstep services and quick disbursals.
Make Use of Purity’s Power
The most potent “multiplier” in your loan computation is the karat of your jewellery. Lenders have shifted to highly standardised assaying procedures. Declaring high-purity materials helps you get a higher valuation and a better loan amount.
Make sure you are offering hallmarked jewels in order to receive the best gold loan. Because the collateral risk is essentially zero, hallmarked gold (BIS 916) lowers the lender’s uncertainty during appraisal and frequently enables them to provide a more alluring gold loan interest profile.
Consider the Mode of Repayment
The best gold loan is one that doesn’t negatively impact your monthly cash flow. Below are a few repayment options you may consider:
- Bullet Repayment: At the conclusion of the term, which is usually 12 months, you pay the whole amount. Although the cumulative interest cost of the gold loan may be somewhat greater, this is great for short-term liquidity.
- Monthly Interest Payment: You just pay the interest each month; the principal is paid at the end. As a result, the monthly burden is minimal.
- EMI (Principal + Interest): The most organised approach to loan closure is through EMI (principal + interest), which progressively lowers your principal and, as a result, your overall interest expense.
Use a computerised gold loan calculator to determine which option delivers the biggest savings before you sign the contract. Even a 0.5% change in the repayment schedule might save you thousands of rupees on a big loan in the expensive year of 2026.
Be Aware of Unexpected Fees and Penalties
High administrative costs can occasionally be concealed by a low headline interest rate on gold loans. Searching for the finest gold loan requires you to consider the “Total Cost of Credit.”
- Processing costs: For loans up to ₹3 lakh in 2026, several banks provide “Nil” processing costs.
- Make sure valuation fees are clear and do not represent a portion of the loan balance.
- Prepayment and Foreclosure Penalties: You shouldn’t have to pay a large penalty if you decide to end your gold loan early.
- Late Payment Fees: Examine gold loan interest “steps up” if you fail to make a payment. Some lenders charge 2% monthly punitive interest on the past-due balance, which can easily get out of hand.
Conclusion
Finding the greatest gold loan in 2026 requires striking a balance between the historic worth of your gold, i.e., ₹14,440 per gram, and a lender who understands your desire for quickness and transparency. You may make sure that your gold is a bridge to your financial objectives rather than a burden by comparing the tiered LTV brackets and selecting a repayment schedule that corresponds with your income. The knowledgeable borrower usually prevails in a market where gold loan interest rates are more competitive than ever. Spend some time evaluating at least three lenders, confirming that they are in accordance with the RBI as of 2026, and confidently discovering the actual worth of your assets.
FAQs
How much can I borrow in gold today, per gram?
The maximum credit amount for loans under ₹2.5 lakh (85% LTV) is around ₹12,274 per gram as of February 21, 2026, when 22K gold is valued at ₹14,440 per gram. Make sure your decorations are made of pure gold with minimal stone deductions to receive the greatest gold loan value.
Does my gold loan interest rate depend on my credit score?
In general, no. The majority of lenders offering a quick gold loan do not significantly rely on your CIBIL score because it is a secured loan. However, with certain private banks in 2026, having a solid credit history might help you get greater loan amounts or “preferred” gold loan interest rates.
How can I figure out how much interest is due on a gold loan?
The straightforward calculation is as follows: Principal x Annual Rate x Tenure (in years). Many lenders include a best gold loan calculator on their smartphones for a more accurate 2026 figure. This tool automatically adjusts for your selected repayment method and particular LTV tier.
In 2026, would I be able to obtain a gold loan for 18K jewellery?
Yes, most lenders accept 18K gold. However, the interest rate on the gold loan and the value per gram will be different because the purity is 75% as opposed to 91.6% for 22K. Before using the current market cost of ₹14,440 per gram, lenders first convert your 18K weight into a 22K equivalent.
If I close my gold loan early, will I be penalised?
Prepayment penalties are not imposed by the majority of respectable lenders providing the best gold loan in 2026. However, if you end the loan nearly immediately after disbursement, some may demand a minimum interest payment of seven to fifteen days. Verify your agreement’s “Foreclosure” clause at all times.
