Gold Loan

Type of Loan

Demand Loan

Objective/Purpose

To enable Borrowers in Rural/ Semi-urban/Urban/Metropolitan areas to avail of easy and instant credit facilities for the purpose which are categorized as Priority Sector Activities like Agriculture, Retail Trade, Small Business, Micro & Small Enterprises, Education , Housing etc.

Eligibility

1. Loan against security of gold ornaments can be made to all Borrowers who would avail such loan for Agriculture & Allied Activities, Activities related to Micro & Small Enterprises, Retail Trade, Housing, Education etc.

2. Necessary declaration from the eligible borrowers will be required to be obtained specifying the purpose of such loan at the time of sanction.

Margin

1. Loan against security of gold ornaments can be made to all Borrowers who would avail such loan for Agriculture & Allied Activities, Activities related to Micro & Small Enterprises, Retail Trade, Housing, Education etc.

2. Necessary declaration from the eligible borrowers will be required to be obtained specifying the purpose of such loan at the time of sanction.

3. A margin of 25% is to be maintained on the market price of the gold.

Amount of loan to be sanctioned per Gram of Gold

Maximum amount that can be sanctioned per gram of standard gold will be decided by Head Office fortnightly and will be dully communicated to the Zones/Branches .

Assesse/Testing of Gold Ornaments

1. All gold ornaments before being accepted as security should be apprised by an experienced Gold Smith for its weight, purity and fineness.

2. For this purpose a Gold smith having good reputation for his professional skill and undoubted integrity should be identified by conducting discreet enquiries.