Gold loan repayment option: Choose based on cash flow, not loan eligibility
Last Update Date: 05-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said counting accrued interest in the LTV limit may cut bullet-loan disbursals by about 10–15%, and pointed out that the lump sum due at maturity and a thinner buffer raise risk for borrowers.
More of Abhishek's views on debt and loans
This article explains RBI's revised loan-to-value norms for gold loans, which count accrued interest for bullet repayment loans and cap their tenure at 12 months. It compares bullet, EMI and interest-only repayment, their total cost and gold-price risk, and suggests choosing based on cash flow.
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Gold loan repayment option: Choose based on cash flow, not loan eligibility