Domestic gold-loan lenders are well ring-fenced from price correction risks despite the recent increase in the regulatory loan-to-value (LTV) cap to 85%, according to a report by Crisil Ratings. These lenders have adopted conservative guards while lending, including keeping the LTV ratio in the range of 65-75% and sticking to prudent risk management practices, it said. “The sector’s resilience, riding on robust processes, such as regular mark-to-market (MTM) valuation of gold, adequate LTV buffers and streamlined auction processes, is reflected in negligible credit cost borne by lenders in this segment over the past decade,” the report stated.