Gold Loan

Loan to any individual: For any genuine justifiable reason against gold ornaments/jewellery or specially minted coins upto 50 grams per customer.

For Business purpose: Business expansion/working capital/ equipment purchase or any other justifiable reason. The call will be taken on total financial evolution as practice in all business loan cases.

Eligibility : Loan to individuals & other than individuals

➤ Eligible collateral for LTV is as under:

i. Where interest is serviced at monthly rest:

Limit	Margin	Quantum of Finance	Value of security to be required on loan amount
Loan up to Rs.2.50 lakh	17%	83%	121%
Rs.2.50 lakh to Rs.5.00 lakh	22%	78%	129%
Above Rs.5.00 lakh	27%	73%	137%

ii. BULLET PAYMENT: Where interest will be paid along with principal at the time of maturity of loan (ONLY IN CASE OF BULLET REPAYMENT OPTION WHERE CUSTOMER CHOOSES TO REPAY INTEREST AT THE TIME OF MATURITY):

Limit	Margin	Quantum of Finance	Value of security to be required on loan amount
Loan up to Rs.2.50 lakh	22%	78%	129%
Rs.2.50 lakh to Rs.5.00 lakh	27%	73%	137%
Above Rs.5.00 lakh	32%	68%	148%

iii. Where EMI is serviced at monthly rest:

Limit	Margin	Quantum of Finance	Value of security to be required on loan amount
Loan up to Rs.2.50 lakh	15%	85%	118%
Rs.2.50 lakh to Rs.5.00 lakh	20%	80%	125%
Above Rs.5.00 lakh	25%	75%	134%

 Maximum loan amount:

Maximum Limit for Overdraft facility to Individuals: Rs.5.00 lakh.
Maximum Limit for Bullet payment, term loan and overdraft to other than individuals for single borrower will be Rs.50.00 lakh and jointly within the same family not to exceed Rs.80.00 lakh, minimum loan of Rs.25,000/-. (i.e. Family members mean spouse, children, parents, siblings).

Security : Gold ornaments / Jewellery of not less than 18 carats (preferably Hallmark) certified by approved gold valuer. The gold valuation should be for rate of 22 carat gold; hence the Gold Valuer should adjust net weight of the 18-carat gold to proportionate 22 carat gold and so the rate of 22 carat gold can be applied. Similarly, the rate for 23 & 24 carat gold.

Specially minted gold coins upto 50 gms per customer with “99.99% purity” certification – To be obtained with proper receipt of purchase and ownership.

Guarantors :
- Upto Rs.2.50 lakh: NIL Guarantor
- Above Rs.2.50 lakh: one guarantor with spouse guarantee (without financial)
- In case proposal falls under financial/Cibil deviation, one guarantor with financial income to be obtained

Subscription to Bank's Share - Membership: 1% of the loan amount or Rs.10,000/- whichever is lower

Processing fee :

For New loan: @0.40% of loan amount plus applicable GST
For Top-up Loan: @0.40% for top-up amount plus applicable GST
For renewal of loan: @0.25% of loan amount plus applicable GST

Prepayment Charges: NIL

The gold valuation will be carried out by bank empanel valuers who have entered into agreement with the Bank. The said eligible valuation for pledged gold will be done within branch premises in presence of the valuer, borrower and bank officials. The usual practice of valuation is by asserting the purity of gold by way of stone rub and acid test.

The net weight of the gold ornament is ascertained after deducting of melting loss/weight of other materials like stone, alloys.

The detailed description of the ornaments including breakage/damage will be reported by the valuer in prescribed format as below indicating the purity of gold and equivalent gross and net weight coinciding with 22 carat gold.

The Bank has/will issue to the Borrower/s a certificate or e certificate in duplicate on its letter head regarding assay ( Evaluation) of the collateral and state therein the purity ( in terms of carat), gross weight of the eligible collateral pledged, net weight of gold or silver content therein and deductions, if any, relating to the weight of stones, lac, alloy, strings, fastenings, etc, damage, breakage or defects, if any, noticed in the collateral, image of the collateral; and the value of collateral arrived at the time of sanction. One copy of the certificate or e certificate shall be kept as part of the loan documents and the other copy be given to the Borrower under their acknowledgement.

As of now our Bank has followed the practice of issuing gold rates on bulletin board with average of the opening price of 22 carat gold (gold 916 am price) for the preceding 30 days on monthly basis for loan against the gold across the bank as published by the India Bullion and Jewellers Association Ltd. (IBJA).

The gold rates will be display on the website on daily basis which will be a calculation of average of preceding 30 days of the closing price of 22 carat gold (gold 916 pm price) as quoted by the India Bullion and Jewellers Association Ltd. (IBJA).

Gold valuation format:

Sr No	Details of jewellery	Carat	Gross weight		Net weight		Rate for 10 grams	Total Valuation
Sr No	Details of jewellery	Carat	grams	milli grams	grams	milli grams	Rate for 10 grams	Total Valuation

Release of collateral security (pledged gold): Once the loan availed by the Borrower/s is closed by way of repayment, the pledged collateral shall be returned by the Bank to the Borrower/s within a period of seven working days from the date of such repayment.

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