Gold Loan
Target Group
Individuals (Including farmers) who owns Jewellery.
Loan Amount
Minimum Loan Amount : Rs. 5000/-
Maximum Loan Amount : Rs. 1 Lac subject to the maximum of 70% of the valuation of gold ornaments as per the approved valuer.
Eligibility
- Farmers/ Agriculturist/Other customers with satisfactory dealings subject to compliance of KYC Norms.
- Minimum 18 years and maximum 65 years.
Purpose
- For Agriculture & Allied Activities
- For consumption/ domestic /medical purposes (but not for speculative purposes)
Type of Facility
Term loans may be sanctioned under the scheme for agriculture as well as non-agriculture purposes for the maximum period of 1 year.
Valuation
By Shroff / Jewel Appraiser approved for valuation of jewellery for the purpose of Wealth Tax Assessment. (The Head office would notify the panel of such appraisers whose certificate alone will be accepted by the Branches)
Repayment Period
- Agricultural Purpose : Repayment will be tied up with the harvesting period
- Others
- Repayment in 12 EMI
- Short term loan for 1 year with monthly servicing of interest and bullet payment of remaining dues at the end on due date.
(PDC’s should be obtained from the borrower accordingly)
Security
Pledge of the gold jewelery /ornaments/ gold coins approved by valuer.
Discretionary Powers
Branch Heads : Upto Rs 1.00 Lac and above that at HO Level.
Custody of Pledged Ornaments
The Ornaments should be kept in a plastic Box bearing cloth sealing describing the name of the borrower, Nature of Articles, A/c No. and date of Advance.
The articles should be sealed in the box immediately after their valuation. The sealed packet should bear signature of the borrower and credit incharge. This box should be kept in safe in the strong room under the joint custody of the officials of the branch who are in possession of cash keys.
Every packet should be serially numbered and should be entered in the jewellery pledge register. The entry in the jewellery pledge register should be made under the signature of the borrower and the credit incharge. The full description of the articles with regard to nature of ornament, Gross Weight, Value and number of items alongwith name and address of borrower and Account Number should be given in the jewellery pledge register. The signature of the borrower should also be obtained in the jewellery pledge register at the time of delivery on the settlement of the loan.
Insurance
Jewellery pledged with the bank should be got insured by the branch covering the risk of burglary and FRS at the cost of the borrower.
Default
When the borrower fails to repay the loan on the due date, a notice calling upon him to repay loan within a specified time should be given and if no response is received, a reminder should be sent by registered post informing the borrower that the ornaments would be auctioned and after adjusting the sale proceeds against the outstanding dues to the bank, the balance, if any, would be paid to the borrower.
Other Guidelines
- The applicant should be properly introduced & his/her identity should be properly verified before the loan is granted.
- A declaration must be obtained from the borrower regarding his/her/their bonafide ownership of the ornaments.
- No advance should be granted against security of primary gold, i.e: 24 carat gold bars & biscuits.
- No advance should be allowed against the jewellery which is not owned by the applicant. In case of jewellery embedded the name of the person other than the pledgee, the loan should either be not made or be made in the joint names inclusive of the person whose name is so embedded.
Documentation
- Prescribed Loan application form
- Statement of Bank Account..
- ID Proof, Address Proof, Income Proof.
- Agreement of loan duly stamped
- Certificate of appraiser/valuer countersigned by the borrower
