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June 06, 2025

Gold loan stocks rally after RBI hikes loan-to-value ratio limit and eases small loan norms

Gold loan stocks rallied between 2-7% after RBI hiked the Loan-to-Value (LTV) ratio limit for gold loans below Rs 2.5 lakh, which will be revised to 85% from 75% as part of the latest norms.Shares of Muthoot Finance, Manappuram Finance, and IIFL Finance rallied upto 7%, 5%, and 5% respectively. Muthoot Finance is currently trading at Rs 2,440 up from day’s low of Rs 2,284. On the other hand, Manappuram Finance is trading at Rs 245 up from day’s low of Rs 233. And IIFL Finance is currently trading at Rs 449 up from day’s low of Rs 428.Also Read | RBI slashes rates by 50 bps: What it means for debt mutual fund investorsThe RBI Governor also clarified that small-ticket gold loans will not require credit appraisal, and end-use monitoring will be limited to loans under the Priority Sector

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