Скачать или смотреть What is Loan to Value Ratio for Gold Loans?

The gold loan to value (LTV) ratio in India is a critical metric for borrowers and lenders alike. It determines the maximum amount of money that can be borrowed against a certain value of gold. According to the Reserve Bank of India (RBI) guidelines, the maximum LTV ratio for gold loans is set at 75%. This means that if you pledge gold worth ₹1,00,000, you can get a loan of up to ₹75,000.

Gold loans are popular in India due to their quick processing and relatively lower interest rates compared to other forms of credit. They are commonly used for personal, business, and agricultural purposes. The LTV ratio ensures that the risk for lenders is minimized, as the gold serves as a secure collateral.

However, the LTV ratio can vary based on the lender’s policies, market conditions, and the purity of the gold. Banks, Non-Banking Financial Companies (NBFCs), and other financial institutions may offer different LTV ratios within the RBI’s permissible limit.

Borrowers should be mindful of the repayment terms and interest rates while availing gold loans. Defaulting on repayments can lead to the loss of pledged gold, as lenders have the right to auction the gold to recover their dues.

Understanding the gold loan to value ratio is essential for making informed borrowing decisions and effectively managing financial needs.

Keywords: gold loan, LTV ratio, India, Reserve Bank of India, RBI guidelines, collateral, borrowing, interest rates, financial institutions, gold value.