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Home >> Loan >> Retail Schemes >> Loan against Gold Ornaments
Loan against Gold Ornaments



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.


All individual / proprietors borrowers

Type of facility

For non-agriculture purpose

a)       Demand Loan

b)       Overdraft


For agriculture purpose

a)       Demand Loan

b)       Overdraft

c)        Term Loan

Loan Limit

For non-agriculture purpose : Max- Rs. 50.00 Lacs per borrower

For agriculture purpose : Max- Rs. 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.


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


  • For Non-Agricultural Purposes: 30%


  • For Agricultural Purposes :

a)       For Demand Loan/ OD: 25% against value of gold ornaments offered as security as assessed / appraised by the approved valuer.

b)       For Term Loan: 50%

Rate of interest

Click here to view Rate of Interest.

Penal Interest

a) Upto    Rs. 0.25 lacs                                       - NIL

b) Above Rs. 0.25 lacs & Upto  Rs. 2.00 Lacs     - 1%

b) Above Rs.2.00 lacs                                        -  2%

c) No prepayment penalty

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

Process fees

Click here to view Process Fee.

Documentation Charges / Prepayment penalty



a) Demand loan is to be liquidated within a maximum period of 12 months.

b) Overdraft facility shall be reviewed / renewed every year.

c) Repayment period for gold loans sanctioned for Agriculture purpose should be linked to harvesting of crops.

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

* For further details please contact the nearby branch or call at 1800-180-1235 & 0124-2340940