loan against gold ornaments

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loan against gold ornaments

Purpose	All type of agriculture / allied activity, Business enterprises, Any other activity taken up by the applicant for self employment, Personal consumption needs, non speculative purpose.
Eligibility	All individual / proprietors borrowers

Finance

Type of Facility	For non-agriculture purpose Demand Loan Overdraft For agriculture purpose Demand Loan Overdraft Term Loan
Loan Limit	For non-agriculture purpose : Max- ₹ 50.00 Lacs per borrower For agriculture purpose : Max- ₹ 10.00 Lacs per borrower
Assessment of Loan limit	70% of rate of 22 Carat gold jewellery or 70% of value appraised by Appraiser, whichever is less.
Check points	Primary gold i.e. gold in any unfinished or semi finished form & includes ingots, bar blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires shall not be pledged Gold Bricks / Biscuits/Sikh Bangles / Kada need not be taken as security for advance Silver or Diamond jewellery have not to be accepted for advance Gold ornaments with names inscribed of person other than borrower (S) are not to be accepted The valuation of the ornaments must be based on the weight and fineness of gold contents only No Objection Letter from wife of the borrower, stating no objection for the pledge of the gold ornaments

Security and Margin

Security	Pledge of gold ornament, which has purity between 24 carat to 22 carats only/ pledge of Gold coins specially minted & sold by the bank having per coin weight upto 20 gms. The aggregate weight of Gold coins shall be restricted upto 50 gms per customer
Margin	For Non-Agricultural Purposes: 30% For Agricultural Purposes : For Demand Loan/ OD: 25% against value of gold ornaments offered as security as assessed / appraised by the approved valuer. For Term Loan: 50%

Rate of Interest and Repayment

Rate of interest (floating)

a) For Non - Agriculture purpose:

Nature of Facility	Rate of Interest (floating)
Demand Loan	1 YEAR MCLR+1.50%
Overdraft Facility	1 YEAR MCLR+2.00%

b) For Agriculture Purpose

Nature of Facility	Loan Amount	Rate of Interest
CC/OD for crop production	Irrespective of amount	1 YEAR MCLR
Demand Loan / Term Loan	Upto ₹ 0.50 Lacs	1 YEAR MCLR+1.00%
	Above ₹ 0.50 Lacs to ₹ 2.00 Lacs	1 YEAR MCLR+1.50%
	Above ₹ 2.00 Lacs	1 YEAR MCLR+2.00%

a) Floating On monthly rest (in loan accounts other than Agriculture purpose).
b) For Agriculture purpose loan should be linked to harvesting of crops.

Penal Interest

Upto ₹ 0.25 lacs - NIL
Above ₹ 0.25 lacs & Upto ₹ 2.00 Lacs - 1%
Above ₹2.00 lacs - 2%
No prepayment penalty

Note: The penal interest shall be charged on overdue amount and for the period of irregularity.

Proces Fees

For Non-Agriculture: 0.50% of the loan amount plus GST, if any.
For Agriculture:

Upto ₹ 25000/- Nil
Above ₹ 25000/- 0.50% of the loan amount plus service tax, if any.

Documentation Charges / Prepayment penalty

NIL

Repayment

Demand loan is to be liquidated within a maximum period of 12 months.
Overdraft facility shall be reviewed / renewed every year.
Repayment period for gold loans sanctioned for Agriculture purpose should be linked to harvesting of crops.

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