(April 5): Indian firms that lend against gold are cutting tenors and seeking more collateral to protect against the plunge in prices of the precious metal.

Market leader Muthoot Finance Ltd. has been offering discounts on interest rates and other incentives to borrowers who chose to repay monthly or more frequently. Rival Muthoottu Mini Financiers Ltd. is mostly lending for 90 days now versus 270 previously, and most large firms are disbursing amounts well below regulatory limits, which was 75% of the metal’s value for shadow lenders and 90% for traditional banks through March 31.