How do currency fluctuations impact gold loan interest rates and repayment terms?

Currency changes don’t directly alter gold loan rates, but they do affect how lenders look at the pledged gold’s value. Since gold is priced globally in US dollars, any movement in the rupee–dollar rate can shift its local price in India.

When the rupee slips or prices swing too much, the Loan-to-Value (LTV) ratio changes accordingly. It doesn’t always mean a higher interest rate, though fresh applications during such periods might get a slightly lower loan amount.

If the rupee stays steady and gold prices hold their ground, rates mostly remain unchanged, and borrowers tend to get the usual LTV benefit allowed by the RBI.

In most cases, these are temporary adjustments. Once your gold loan is approved, the agreed rate and repayment plan stay the same until the end of the term.