<h1>Loan-to-value ratio increase for gold loans expands permissible borrowing and tightens collateral ownership and monitoring rules.</h1> RBI updated lending directions for loans secured by gold and silver collateral: it prescribes differentiated LTV ceilings by loan size, mandates LTV calculation against pledged collateral value (and total repayable for bullet loans), and bars lending where ownership is doubtful. Lenders must obtain a borrower declaration of rightful ownership, monitor aggregated or repeated pledges under the AML framework, prohibit advances against primary bullion or bullion-backed financial assets, impose aggregate weight limits for pledged ornaments and coins, require valuation by actual purity, and ensure timely return of collateral upon full repayment; small gold loans are exempted from credit appraisal and priority sector end use checks apply conditionally.