Gold Loan

Quantum of Finance/Loan to Value Ratio (LTV):

Quantum of finance is fixed upto a maximum of 75% of 30 days average IBJA rate or 75% of the value of the gold ornaments as appraised by a bank approved appraiser, whichever is lower (on net weight). Agriculture Loans are subject to Scale of Finance fixed from time to time.

As per RBI regulation, Loan to Value (LTV) ratio of 75% should be maintained throughout the tenor of the loan for all maturities. Borrower will be called upon to reduce the loan outstanding, so as to maintain LTV always within 75%