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As on : 07-Jun-2025
Economy - Reports
07-Jun-2025     15:23

RBI to raise gold lending LTV to 85% for loans under Rs 2.5 lakh

The Reserve Bank of India (RBI) on Friday increased the loan-to-value (LTV) ratio on gold loans up to Rs 2.5 lakh to 85 per cent per borrower, up from the 75 per cent proposed in the draft norms issued in April this year. For gold loans more than Rs 2.5 lakh and up to Rs 5 lakh, the LTV ratio has been set at 80 per cent. For loans more than Rs 5 lakh, the central bank has set an LTV of 75 per cent. The RBI said that the new norms will come into effect from April 1, 2026.

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