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Banks tighten gold loan limits over volatility concerns: Report
short by Mansi Agarwal / on Sunday, 21 December, 2025
Banks and NBFCs have tightened lending limits on gold loans after the RBI cautioned them over rising volatility in gold prices, Financial Express reported. Lenders have scaled back loan-to-value (LTV) ratios from 70-72% to 60-65%. "The concern is that if gold prices decline by 10-15%, the outstanding loan value could exceed the value of the pledged jewellery," the report said.
read more at Financial Express