Gold Loan Eligibility and LTV Explained
A gold loan lets you borrow against your gold jewellery or coins. The loan amount depends on the gold value and the Loan-to-Value (LTV) ratio, which RBI caps at 75%.
You can choose from Bullet repayment (pay everything at the end), Interest-only (pay monthly interest, principal at the end), or regular EMI. Bullet schemes have lower monthly burden but a large final payment.
Frequently Asked Questions
What is the maximum LTV for a gold loan?
RBI restricts the maximum Loan-to-Value ratio for gold loans to 75% of the gold value.
What happens if gold prices fall during my loan?
If the LTV exceeds 75% due to falling prices, lenders may ask for additional cash/gold deposit, or risk auctioning the pledged gold.