What is the current price of gold per 10 grams as of February 2026?

Gold prices have surged to a record ₹1,60,540 per 10 grams in early 2026.

How do high gold prices affect loan amounts?

Higher gold prices significantly increase borrowing capacity, as the same quantity of gold now secures a substantially higher loan amount due to the RBI's 75% LTV cap.

What advice does Muthoot Finance offer during this gold rally?

Muthoot Finance advises borrowers to use the window of high gold valuation for strategic purposes like debt consolidation or business expansion, emphasizing transparent appraisal processes.

Home / Business and Economy / Gold Soars: Borrowing Power Hits New Highs

Gold Soars: Borrowing Power Hits New Highs

12 Feb

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Summary

Gold prices surged to ₹1,60,540 per 10 grams, an 18% increase.
Higher gold values significantly boost borrowing capacity for households.
RBI's 75% LTV cap means more capital is secured by the same gold quantity.

Gold Soars: Borrowing Power Hits New Highs

Gold prices in India have surged to a record ₹1,60,540 per 10 grams in early 2026, marking an 18% increase. This historic rally has prompted Muthoot Finance, India's largest gold loan NBFC, to issue a market advisory for consumers. The advisory highlights how these record prices directly enhance the borrowing capacity of Indian households.

The primary impact of this surge is the increased Loan-to-Value (LTV) output. With the Reserve Bank of India capping gold loan LTV at 75%, the same quantity of gold jewelry now secures a substantially higher loan amount. This transforms gold from a passive reserve into an active financial tool.