Mumbai, June 6 -- The Reserve Bank of India (RBI) will ease key provisions in its proposed gold loan framework-raising the loan-to-value (LTV) ratio and exempting small-ticket borrowers from credit appraisals-after feedback from non-banking financial companies (NBFCs), cooperative banks, and government departments, governor Sanjay Malhotra said on Friday.

Aimed at improving access to formal credit for rural and semi-urban borrowers, the new rules will exempt gold loans up to Rs.2.5 lakh from credit appraisals, raise the LTV cap for small-ticket loans to 85% from 75%, and allow borrowers to self-declare gold ownership in the absence of purchase invoices.

The revised guidelines are expected to be released later today or by Monday, Malhotr...