Limit under Gold Loans is to be assessed as under:
Loan amount requested by Applicant/assessed amount on declaration;
75 % of the appraised value of Gold Ornaments of 22 carat fineness (65% of the appraised value of Hall mark Gold ornaments of below 22 carat up to 18 carat fineness applicable to 7 designated zones like Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal and Jaipur)
Amount eligible based on the per gram rate fixed by the bank for 22/20/18 carat fineness.
Whichever is lower
Specially minted gold coins sold by any Bank (24 carat fineness) shall be treated as gold ornaments for loan assessment purpose.
If gold ornaments are of Hall mark 22 carat fineness Rs.50 extra per gram can be given under this scheme for gold loan repayable within 9/6/3 months tenure.(#)
(#)The loan component including any additional amount for hall-marked jewellery shall be restricted to 75% of assessed gold value