Gold Loan

Eligibility

• All individuals can avail loan against gold ornaments owned by them
• Valuation and Assaying of Gold Collateral
  • The valuation of gold is based on the average of the closing price of 22-carat gold  over the preceding 30 days, as published by the India Bullion and Jewellers Association (IBJA) or The closing price of 22 carat gold on the preceding day as published by  IBJA whichever is lower.
  • For gold jewellery /Ornaments with purity below 22 carat (but not less than 18 carat), rate per gram is arrived proportionately based on 22 carat rate.
  • In the process of gold valuation, Bank will be performing assaying procedures which includes stone touch testing, Nitric acid testing, using Gold purity analyser (wherever available).
• Methodology Adopted for Determination of  Net Weight of Gold
  • Gross weight is recorded using Legal Metrology Department certified weighing machines. Net weight is arrived after deducting weight of non Gold items if any , and there after applying a  standard deduction of 0.50% to1%.
  • Advances are to be sanctioned only on the net gold contents of the ornaments as per the above guidelines or net weight certified by the Appraiser, whichever is lower.
• Loan To Value (LTV) Ratio*
  • As per the RBI Guidelines maximum permissible LTV Ratio for Consumption Gold loan is given below

Loan Amount per Borrower	Maximum LTV Ratio
<= Rs.2.5 Lakhs	85%
>Rs.2.50 Lakhs - <=Rs.5 lakhs	80%
>>Rs.5 lakhs	75%

        *subject to regulatory caps and internal credit policies. The prescribed LTV ratio shall be maintained on an ongoing      basis throughout the tenor of the loan.

Documentation

• Please click here for Gold Loan Agreement copy

Fees & Charges

• Please click here for detailed Schedule of Charges for Loans and Advances
• Please click here for detailed Schedule of Charges of Savings Account

Apply

• Please click here to Apply