US EditionRBI to Raise Gold Lending LTV to 85% for Loans Under ₹2.5 Lakh: Malhotra
- On Friday, June 6, 2025, the Reserve Bank of India raised the maximum allowable borrowing against gold collateral to 85% of the asset's value for loans below ₹2.5 lakh.
- This change follows draft guidelines issued in April 2025 with a 75% LTV and requests from the Department of Financial Services to protect small gold loan borrowers.
- Gold loan outstanding surged 76.9% year-on-year to ₹1.78 lakh crore by January 2025, while gold loan NPAs rose 28.58%, reaching ₹6,824 crore in December 2024.
- RBI Governor Sanjay Malhotra said the LTV now includes interest, applies throughout the loan tenor, and credit appraisal is waived for loans up to ₹2.5 lakh secured by gold.
- The RBI requires compliance with the new norms by April 1, 2026, aiming to regulate gold lending with minimum risk and clarity on collateral ownership.
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People these days tend to consider various loan options to address various financial requirements. One such borrowing option that has drawn attention is the loan against property, which is usually secured by pledging a residential or commercial property. This borrowing facility is usually preferred due to its comparatively lower interest rate and longer repayment period. Whether to finance education, cover healthcare bills, or pay off existing l…
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News18 IndiaRBI raises LTV ratio for small ticket loan against gold
Mumbai, Jun 6 (PTI) The RBI on Friday raised the loan-to-value (LTV) ratio for lending against gold to 85 per cent for borrowings under Rs 2.5 lakh from the present 75 per cent, and spelt out other conditions with an aim to regulate the category in a better way with minimum risk. The LTV ratio […]
RBI Raises LTV Ratio for Small Ticket Loan Against Gold
Get latest articles and stories on India at LatestLY. The RBI on Friday raised the loan-to-value (LTV) ratio for lending against gold to 85 per cent for borrowings under Rs 2.5 lakh from the present 75 per cent, and spelt out other conditions with an aim to regulate the category in a better way with minimum risk. India News | RBI Raises LTV Ratio for Small Ticket Loan Against Gold.
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