Jewel Loans

 

Jewel Loan

1

Purpose

  • Granting of Loans to individuals against pledge of gold jewellery/ornaments for productive and consumption/domestic purposes such as

(i) For funding Agricultural and allied activities towards crop cultivation, investment purposes such as minor irrigation, farm mechanization, purchase of live stocks.

(ii) For funding small business, traders, professionals & self-employed and other MSE activities undertaken by individuals either as term loan or Cash Credit (Pledge) facility.

2

Eligibility

  • Individuals.
  • Applicant should be the owner of the gold jewellery/ornaments proposed to be pledged. In case the jewellery is owned by the spouse she/he should join as co-borrower for the loan.
  • Loans can be granted only against 22 carat ornaments.
  • In case of loan against security of specially minted gold coins, the total weight of the coins should not exceed 50 grams per customer.

3

Nature of facility

Term Loan or Cash Credit

4

Quantum of Loan minimum/maximum

Minimum Amount: Rs.1000/-

Maximum Amount: No Limit.

5

Margin

25% to 35% depending on scheme.

6

Rate of interest

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7

Guarantor

Not Applicable.

8

Security

Pledge of 22 carat or Hallmarked gold ornaments/jewellery, gold coins (specially minted and sold by Banks) owned by the applicant/s.

9

Processing fees/other charges

NIL for loans up to & inclusive of Rs.25000/-

0.50% of the loan amount for loans above Rs.25000/- with a minimum of Rs.575/- +GST and maximum of Rs.2875/- +GST inclusive of taxes.

10

Jewel Appraisal Charges

Rural area: 0.507% of loan amount with a maximum of Rs.253/- + GST

Other than rural: 0.563% of loan amount with a maximum of Rs.282/- +GST

11

Account Closure Charges

Rs.100/- + GST

12

Repayment Period

12 to 30 months depending on the scheme.

13

Application with checklist

Download from here (link to be provided)

14

Scale of Finance

  • 75/65% of Gross value of 22 carat or hallmarked gold ornaments/jewellery arrived at the rate per gram of gold notified by the Bank on daily basis.                                      

OR

  • 75/65% of Appraised value of the gold ornaments/jewellery arrived at by the appraiser, whichever is less.

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