Archive · 7 Jun 2025
RBI Eases Gold Loan Norms for Small Borrowers
The RBI is making it easier for people to get loans using gold and silver.
They're letting people borrow more money compared to the value of their gold, especially for smaller loans.
They're also making the rules the same for all banks and financial companies, and making it easier to prove you own the gold or silver.
These changes aim to help small borrowers.
RBI revised gold and silver loan norms to aid small borrowers and standardize regulations.
The new rules increase loan-to-value (LTV) ratios for smaller consumption loans.
LTV for loans up to Rs 2.5 lakh increased to 85%.
Lenders can accept declarations as proof of ownership, removing formal record requirements.
Auctions require a minimum reserve price of 90% of the value.
- Who
- RBI
- What
- Revised norms for loans backed by gold and silver
- When
- Friday
- Where
- India
- Why
- To widen credit access for small borrowers and standardize regulations.
- LTV for Loans Up to Rs 2.5 Lakh
- Increased to 85%
- LTV for Loans Above Rs 2.5 Lakh & Up to Rs 5 Lakh
- Capped at 80%
- LTV for Loans Above Rs 5 Lakh
- 75%
- Effective Date
- April 1, 2026
- Lending Against Bullion/ETFs
- Prohibited
