Economics · Banking and Finance
Consider the following statements regarding the Loan-to-Value (LTV) Ratio: I. It is calculated as the ratio of the loan amount to the appraised value or purchase price of the asset, whichever is lower. II. Higher LTV ratios typically result in loans with higher interest rates due to increased risk for the lender. III. The Reserve Bank of India recently increased the LTV ratio to 95% for all gold-backed loans up to ₹5 lakh per borrower. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II, and III
- 2I and III only
- 3II and III only
- 4I and II only✓
Correct answer
I and II only
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