Gold Loan
Type of Loan: Demand Loan / Overdraft
Objective / Purpose
Avail easy and instant credit facilities against your Gold Ornaments / Jewellery or Coins for consumption/personal purposes as well as income generating activities including Agriculture, Trade, Small Business, Micro & Small Enterprises, Education, Housing etc.
Eligibility
All new/existing individual customers owning gold ornaments / jewellery / coins.
Consumption / Personal Purposes
Avail loans under consumption / personal or consumer credit requirements, other than speculative purpose/purchase of gold in any form.
Income Generating Purposes
For income generating purposes (agri / MSME / business etc.) with minimal documentation. Individuals / proprietorships engaged in Agriculture, Small Business, MSME units, professionals, etc. can avail the Gold Loan facility for productive uses such as farm credit, loans for business/commercial purposes, and loans for creation or acquisition of productive assets.
Margin
- For Personal / Consumption purposes: up to 70% of the current market value of gold.
- For Agriculture or Allied activities: up to 85% of the current market value of gold.
Assaying and Valuation of Gold
Bank-empanelled gold appraisers are available at designated branches for assessment of purity and weight. All gold ornaments will be appraised for weight, purity and fineness before acceptance as security.
Method of Valuation
The intrinsic value of gold contained in the security shall be reckoned net of non-gold elements (stones, gems, alloy, lac, strings, fastenings etc.) to arrive at the net weight of gold.
Gold ornaments/jewellery/coins of 18-22 ct, both hall-marked and non-hall-marked, are accepted and valued based on reference price corresponding to purity using the closing price of gold as published by India Bullion and Jewellers Association Ltd (IBJA) on a periodic basis to determine the LTV ratio.
Rate of Interest
For latest rate of interest: Click Here
Service Charges (Excluding GST)
Processing / Renewal Charges
| Category / Loan Amount | Processing / Renewal Charge |
|---|---|
| Priority Sector Advances - Up to Rs 50,000 | Rs Nil |
| Non-Priority Sector Advances - Up to Rs 25,000 | Rs Nil |
| Non-Priority Sector Advances - > Rs 25,000 to Rs 50,000 | Rs 250 |
| Both Priority & Non-Priority - Rs 50,000 to Rs 1 Lakh | Rs 250 |
| > Rs 1 Lakh to Rs 2 Lakh | Rs 350 |
| > Rs 2 Lakh to Rs 3 Lakh | Rs 500 |
| > Rs 3 Lakh to Rs 5 Lakh | Rs 800 |
| > Rs 5 Lakh | 0.25% with max of Rs 4,000 |
Appraisal Charges
Rs 5 per thousand of loan amount with Min Rs 250 & Max Rs 1000 at Metro centres and Min Rs 200 & Max Rs 500 at Other centres.
Other Charges
- Documentation Charges: NIL
- Prepayment Charges: NIL
- Stamp Charges: At actuals as applicable to respective State
- Safe Custody Charges: If the security is not taken back within one month of due date/liquidation of liability — Rs 100 per month.
Rates are subject to change as and when revised by the Bank.