What is the LTV in gold loan?

LTV (Loan-to-Value) is the percentage of gold value lent as loan. RBI caps LTV at 75% for EMI loans and 60% for bullet repayment loans. Example: ₹1,00,000 gold at 75% LTV = ₹75,000 loan. The remaining 25% acts as a buffer against gold price drops during the loan tenure.