What is LTV Ratio in Gold Loans and How is it Calculated?

Loan-to-Value (LTV) is the percentage of your gold value that a lender can lend you. The RBI strictly mandates that the LTV for gold loans cannot exceed 75%.

• Only gold purity of 18 to 22 carats is accepted.
• Lenders calculate the value based only on the weight of the gold, excluding stones or gems.
• If gold prices fall sharply, lenders may request you to pay cash to maintain the 75% LTV margin.