Home / Business and Economy / Gold Soars: Borrowing Power Hits New Highs
Gold Soars: Borrowing Power Hits New Highs
12 Feb
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 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.
Muthoot Finance advises borrowers to utilize this period of high valuation for strategic financial moves, such as debt consolidation or business expansion. The company emphasizes transparent appraisal processes to ensure customers maximize their asset value. Enhanced borrowing power and potential capital savings through improved credit terms are key advantages for borrowers.
In this high-price market, Muthoot Finance stresses the importance of using RBI-regulated lenders for secure valuations at real-time market peaks. This ensures bank-grade security and accurate appraisals.
