Product

• Union Swarna Shakti Loan Scheme-Retail

Eligibility

• Any individual owning gold ornaments/Jewellery/Coins, either singly or jointly.

• Branches to ensure that all KYC/AML norms are complied with for all borrowers.

• Pawn brokers and jewellery shop owners are not eligible under the scheme.

Purpose of Gold Loan

• Finance to meet the financial requirements of the educational purposes including vocational courses and for construction/purchase of dwelling units

Assessment of Loan amount

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;

OR

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)

OR

Amount eligible based on the per gram rate fixed by the bank for 22 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

Quantum of Loan Amount

• For 22 Karat -Maximum amount of loan is Rs.20 lakhs

• For Hallmark gold of 18/20 Karat- Maximum quantum of loan amount shall be restricted to Rs. 5 lakh per borrower.

Margin

• 25%- 22 karat

• 35%- Below 22 karat & up to 18 Karat

(Gold Purity below 22 Karat and up to 18 Karat accepted in branches fallen in 7 designated zones Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal and Jaipur.)

Repayment Period

• Bullet repayment – 12 Months

• Can be repaid in lump sum or in part payments but the loan must be repaid within 12 months along with monthly accrued interest thereon.

Security

• Pledge of Gold Ornaments/Jewellery/Coins

Rate of Interest

• As per Gold Loan Interest rate table.

Processing Charge

• NIL

Appraisal Charges

• Appraisal charge of 0.40% of loan amount with a maximum cap of Rs.500/- and minimum of Rs. 100/-