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RBI hikes permissible loan to value ratio against gold loan to 90% from 75%

August 6, 2020
With a view to further mitigate the economic impact of the Covid19 pandemic on, RBI has decided to increase the permissible loan to value ratio (LTV) for loans against gold for non-agricultural purposes from 75 % to 90 %. This enhanced LTV ratio will be applicable up to March 31, 2021 to enable the borrowers to tide over their temporary liquidity mismatches on account of COVID 19. Accordingly, fresh gold loans sanctioned on and after April 1, 2021 shall attract LTV ratio of 75 %.
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