Loans sanctioned by UCBs not to exceed 75 per cent of the value of gold ornaments and jewellery

It has now been decided to prescribe a Loan to Value (LTV) Ratio of not exceeding 75 per cent for UCBs’ lending against gold jewellery (including bullet repayment loans against pledge of gold jewellery). Gold jewellery accepted as security will be valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India Bullion and Jewellers Association Ltd. Jewellery of lower purity of gold shall be valued proportionately.

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