RealWorld
Gold-backed lending

The 30-Day Lag Problem

Since April 1, 2026, India caps gold loans at 85%, 80% or 75% LTV depending on loan size, and values the gold on a 30-day moving average. After a price crash, the book looks healthier than it is. Drag the sliders to see how long.

Collateral & shock
Pledged gold valueRs 6.0lakh
140 lakh
Lender's own LTV policy70%
50%85%
Gold price drop25%
0%50%
Days since the drop10days
030 days
Margin call trigger (editable assumption)90% LTV
80%100%
-
Loan issued
-
LTV on 30-day average
-
LTV at today's price
What the book reports
Collateral marked on the 30-day average
Collateral value
LTV
Headroom to trigger
Status
What a buyer would pay
Collateral marked at today's price
Collateral value
LTV
Top-up to return to policy LTV
Status
LTV after the drop, day by day

How the tiers work

Caps per RBI's framework: 85% for loans up to Rs 2.5 lakh, 80% from 2.5 to 5 lakh, 75% above 5 lakh. The tier follows the loan, not the gold, so a slightly larger ticket can lower the maximum LTV and cut the amount you can lend. Crisil reported in June 2026 that most lenders hold 65 to 75% in practice. The 90% margin call level and the straight-line average after a one-day price step are assumptions of this model, not RBI rules.

RealWorld

Illustrative model. Not credit advice. Sources: RBI gold loan directions (effective April 1, 2026), Crisil Ratings, June 2026.