In order to mitigate the impact of Covid-19 pandemic on the households and to allow them to take higher loan against their gold, the Reserve Bank of India on Thursday increased the permissible loan-to-value ratio (LTV) on gold loans for non-agricultural purposes to 90% from 75% earlier. This relaxation will be available till March 2021. "As per extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery for non-agricultural purposes should not exceed 75 per cent of the value of gold ornaments and jewellery. With a view to mitigating the impact of COVID-19 on households, it has been decided to increase the permissible loan to value ratio (LTV) for such loans to 90 per cent," RBI governor Shaktikanta Das said while addressing the media after its 3 day MPC meeting. With the relaxation in LTV, banks can lend more money against pledge of gold ornaments and jewellery. Analysts say this move is positive for banks and NBFCs that deal in gold loan.