Gold has been on a long and strong bull run since late 2022 and last week it scaled an all-time high of about $4,060 per troy ounce. Indian households collectively hold over 25,000 tonnes of gold, according to a PwC report. At current prices, this treasure trove could be worth over $3.2 trillion – even higher if expressed in rupee terms.

Gold loans have been the most accessible way of monetising gold holdings for Indians. Per an ICRA report, gold loan AUM in the organised market as of FY25 was worth about ₹12 lakh crore. This is projected to reach ₹18 lakh crore by FY27 at a healthy CAGR of 22 per cent.

With gold at all-time high and gold loans finding solid traction, this is a good time to take stock of the implications that gold prices have on your gold loans.

LTV ratio

LTV or loan-t

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