Gold Loan Warning: Maintain 20% Buffer or Risk Losing Your Pledged Gold!

• Gold loan customers must maintain a 20% buffer against gold value fluctuations to avoid risks.
• Experts advise against taking the full 75% Loan-to-Value (LTV) limit due to market volatility.
• Falling gold prices can trigger 'margin calls' from banks, requiring additional cash or collateral.
• New RBI regulations effective January 2026 enhance transparency and consumer protection in gold loan disbursement.
• Taking a smaller loan reduces interest burden, makes repayment easier, and lowers the risk of auction.

Why It Matters: Be cautious with gold loans; maintain a 20% buffer and avoid max LTV to protect your pledged gold.