Gold Loan Rules Change: Get Less Cash for Your Gold!

• Banks are reducing the loan amount offered against gold jewelry.
• The loan-to-value (LTV) ratio is changing from 70-72% to 60-65% of the gold's value.
• For Rs. 1 lakh worth of gold, borrowers will now get up to Rs. 65,000, down from Rs. 72,000.
• This change aims to protect banks from potential losses if gold prices suddenly drop.
• Economists note that despite lower LTV, higher gold prices might still provide expected cash to borrowers.

Why It Matters: Gold loan borrowers will now receive a lower percentage of their gold's value as a loan.