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SBI to Set Stringent Norms for Gems and Jewellery Borrowers
March 14, 2018
Public sector State Bank of India has decided to tighten the norms for lending in the gems and jewelry sector. It has asked the executives to either get more collateral from the existing borrowers or reduce its size on the loan book.
The decision comes in after a recent discussion by the SBI board which felt that there are gaps in the risk mitigation system that must be plugged. As per their decision, the lender will increase the minimum collateral required for the jewelry and gems sector by 40% to 50%.
