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RBI to raise gold loan-to-value ratio to 85 pc for small borrowers
The Statesman Siliguri
|June 07, 2025
Reserve Bank Governor Sanjay Malhotra on Friday said the central bank will raise the Loan-to-Value (LTV) ratio for gold loans to small borrowers of up to Rs 2.5 lakh to 85 per cent from the existing 75 per cent.
Speaking at a press conference after the monetary policy meeting, he said the final regulations on gold loans will be announced today or latest by Monday.
The increase in the loan-to-value ratio for small loans means that if the gold pledged is worth Rs 1 lakh, borrowers can get up to Rs 85,000 as a loan, up from Rs 75,000.
The move is expected to make it easier for households and small businesses to access funds.
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