Mumbai: The Reserve Bank of India (RBI) has eased rules for gold loans. Those who are seeking loan against gold can now get up to 85% of the gold value as a loan, up from 75%. This new Loan-to-Value (LTV) cap applies to total loan amounts up to ₹2.5 lakh, including interest. For example, if your gold is worth ₹1 lakh, you can now borrow ₹85,000 instead of ₹75,000 earlier.

Sending feedback on this announcement, Mr. Rajesh Rokde – Chairman, GJC said, “The increase in loan availability from 75% to 85% of gold value is a significant development that will empower businesses and individuals relying on gold-backed financing as this is also for loans up to ₹2.5 lakh. This revised loan-to-value ratio enhances liquidity, strengthens financial resilience, and elevates accessibility, particularly for small borrowers. We welcome this progressive move, as it aligns with the evolving needs of the industry and reinforces trust in gold as a stable and reliable asset. The RBI’s swift adoption of industry recommendations highlights its commitment to financial inclusion.”

Mr. Avinash Gupta – Vice Chairman, GJC said, “The revised gold loan regulations, allowing 85% of gold value for loans up to ₹2.5 lakh, mark a pivotal shift in the industry. This modification provides greater financial flexibility, ensuring improved liquidity and convenience for consumers and small businesses. Such progressive policies reinforce confidence in gold-backed financing and drive economic growth. We acclaim the RBI for its timely response to industry needs, making credit more accessible to those who rely on gold for financial security.”