Gold loan: Avoid maxing out on loan limit, maintain 20% valuation buffer
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar suggested borrowing under 80% of the permitted amount to keep a buffer, favoured EMI repayment to bring the loan-to-value ratio down, warned against judging capacity by the gold's value, and advised tenures of six to 12 months.
More of Abhishek's views on debt and loans
With gold loans rising sharply, the article explains how higher gold prices raise loan eligibility, how price falls push up loan-to-value ratios and trigger margin calls or auctions, and how repayment structure affects risk. It advises borrowing conservatively, reading loan terms and dealing only with regulated lenders.
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Gold loan: Avoid maxing out on loan limit, maintain 20% valuation buffer