loan against gold ornaments

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  • loan against gold ornaments
  • Eligibility
    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
    • 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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