India central bank tweaks rules for small business loans, loans against gold

MUMBAI, Sept 30 (Reuters) – The Reserve Bank of India (RBI) tweaked rules for small business loans, allowing the spread charged for the credit risk of a borrower to be adjusted more frequently.
It also allowed banks more flexibility in lending to businesses that use gold as a raw material.
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The changes were announced late on Monday through a circular.
For loans to small businesses, banks are allowed to adjust the additional interest, or spread charged based on the credit profile of a borrower, once in three years.