Gold Loan

Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Gold loans are often used for short term household requirements, business purposes etc. However, in terms of the cost and ease of availing the loan, and the convenience, gold loans are a better bargain.

Purpose

To meet the credit needs of trade, commercial activity, other general business, real estate as also for their bonafide requirements.

Eligibility

Anyone who owns gold ornaments can avail the loan provided he/she is the share holder or nominal share holder of the Bank. (Note: minors are not eligible.)

Procedure

Submit the gold ornaments (within a karat range of 18 to 24 k) along with the application in the prescribed format at the branch. The loan will be sanctioned on the base of the gold valuation which involves verification of its purity.

Charges and other costs

The charges levied are forms, insurance, notice and miscellaneous charges. Please visit the page of service charges in this site

Period

Maximum tenor of 6 months.

Eligible amount

(Shall not exceed Rs.25 lakh)
Bank will periodically review and fix the maximum advance amount payable per gram of gold , which nevertheless will exceed the 80% of the existing market value of the gold.

Repayment

Customers are free to repay part amount of loan and/or accrued interest thereon at anytime.

Rate of interest

To see the interest rate please visit the page of Interest rate in this site. The Bank will charge a minimum interest for 15 days and beyond that the interest will be calculated per day basis . The overdue interest rate is 2% .