RBI new rules for gold loan 2024

LTV Ratio: Maximum Loan-to-Value (LTV) ratio set at 75% of gold value

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Loan Limit: UCBs can now offer gold loans up to ₹4 lakhs, increased from ₹2 lakhs

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Bullet Repayment: Bullet repayment scheme allowed for UCBs that meet sector targets

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Interest Rates: Higher LTV may result in higher interest due to lender risks

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Lending Risk: Banks manage risks by limiting LTV and adjusting interest rates

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Accessibility: Gold loans remain available for those with low credit scores

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Pandemic Policy: Temporary LTV increase to 90% expired in 2021

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Bank Protection: Restrictions protect borrowers and lenders from defaults

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Repayment Flexibility: Borrowers can opt for flexible repayment plans

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