Question
What is the new LTV ratio for gold loans up to ₹2.5
lakh after RBI’s revision?Solution
The Loan-to-Value (LTV) ratio for loans against gold up to ₹2.5 lakh has been increased by the RBI from 75% to 85%. This means that borrowers can now avail loans up to 85% of the value of the gold pledged. This change aims to improve liquidity availability for small borrowers while maintaining regulatory checks on credit risk.
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