Understanding Loan-to-Value Ratios for Gold Loans

What is Loan-to-Value (LTV) Ratio?

The Loan-to-Value (LTV) ratio determines the percentage of your gold's value that a lender is willing to offer as a loan. It directly impacts the loan amount you can receive when pledging your gold.

Example: If your gold is valued at ₹1,00,000 and the LTV is 75%, you can get a loan of ₹75,000.

LTV Ratio for Gold Loans in India

As per the Reserve Bank of India (RBI) guidelines:

• The maximum LTV ratio for gold loans is capped at 75% of the market value of the pledged gold.
• Factors like market conditions and gold purity can influence the exact amount offered.

How Does Muthalagu Finance Maximize Your LTV?

• Accurate Gold Valuation: Using state-of-the-art methods, we determine the exact value of your gold based on its weight, purity, and current market rate.
• 916 BIS Hallmarked Gold Advantage: For hallmarked gold, we offer higher LTV ratios, ensuring maximum loan amounts.
• Customized LTV Options: Flexible LTV-based schemes allow you to choose the best option for your financial needs.

Factors Affecting LTV Ratios for Gold Loans

Gold Purity

• Higher purity gold (e.g., 22K or 24K) fetches better LTV ratios.
• Muthalagu Finance prioritizes hallmark gold for higher valuations.

Market Gold Rates

• Fluctuations in gold prices directly impact loan amounts.
• We update valuations daily to reflect the latest market rates.

RBI Guidelines

• We adhere to regulatory caps to ensure compliance and transparency.

Loan Scheme Chosen

• Some schemes prioritize lower interest rates with lower LTV ratios.
• Others maximize the loan amount for urgent financial needs.

How LTV Impacts Your Gold Loan Amount

Gold Value	LTV Ratio	Loan Amount Offered
₹50,000	75%	₹37,500
₹1,00,000	65%	₹65,000
₹2,00,000	50%	₹1,00,000

Note: Higher LTV ratios provide more funds but may have slightly higher interest rates.

Why Choose Muthalagu Finance for Gold Loans?

• Transparent Valuation: Detailed breakdown of your gold’s value and LTV calculations.
• Competitive Interest Rates: Tailored rates to match your chosen LTV scheme.
• Quick Loan Disbursement: Receive your funds within minutes of approval.
• Secure Storage: Pledged gold is stored in high-security vaults, fully insured for your peace of mind.
• Flexible Repayment Options: Choose plans that align with your financial goals.

Steps to Get a Gold Loan with Muthalagu Finance

Step 1: Gold Assessment

Bring your gold to any Muthalagu Finance branch for a free valuation.

Step 2: LTV Calculation

We calculate your loan eligibility based on your gold’s value and the applicable LTV ratio.

Step 3: Loan Approval

Choose your loan scheme, submit basic documents, and get instant approval.

Step 4: Disbursement

Receive your loan amount in cash, cheque, or bank transfer.

FAQs About Loan-to-Value Ratios for Gold Loans

1. Can I get a higher LTV ratio?

Muthalagu Finance ensures you receive the maximum LTV permitted by RBI, especially for hallmarked gold.

2. Does the LTV ratio vary for different gold qualities?

Yes, higher purity gold qualifies for better LTV ratios due to its value.

3. How often do gold rates impact my LTV?

Gold rates are updated daily, ensuring accurate and fair valuations for all customers.

4. Are there risks in opting for high LTV loans?

While higher LTV loans provide more funds, they may have higher interest rates. Choose based on your repayment capacity.