Eligibility

1. 1) Any individual owning gold ornaments/Jewelry/Coins, either singly or jointly
2. 2) Pawnbrokers, Jewelers & Jewelry shop-owners are not eligible for Gold Loan.
3. 3) Loans can be granted against Gold Ornaments/Jewelry and specially minted pure Gold Coins sold by our Bank/other Banks. The weight of the coin(s) shoold not exceed 50 grams per customer.

Purpose of Gold Loan

1. 1) Agriculture: Gold loans for meeting crop production expenses and/or for creation of assets to be used in farming operation or for allied agricoltural activities like diary, pooltry, fisheries etc and other agri related activities.
2. 2) loans for day to day working capital requirement of business unit, petty trade, purchase of business tools, furnishing of business premises, purchase of furniture & fixtures etc..
3. 3) Consumption loan: Gold loan for consumption purposes are sanctioned to meet unforeseen expenses / contingencies / expenses for medical treatment/ for marriage and other ceremonies / expenses, for education/business needs, etc.

Assessment of loan amount

75%of the appraised value of Gold Ornaments of 22 carat fineness;
OR
Amount eligible based on the per gram rate fixed by the bank for 22 carat fineness
OR
Loan amount assessed based on scale of finance for crop production/ actual amount of credit requirement for other than crop production, as the case may be.

Whichever is lower

1. 1) Specially minted gold coins sold by any Bank (24 carat fineness) shall be treated as gold ornaments for loan assessment purpose.

Nature of facility

1. 1) Loans against gold ornaments can be sanctioned in the form of Union Green Card with operative limit up to 5 years, Short Term Crop Loan, Cash Credit (Pledge), Secured Overdraft, Demand Loan or Term Loan Repayable in Installments with tenure up to 3 years.

Maximum amount of Loan

1. 1) Maximum of Rs.20.00 Lakh for priority sector loans including Agriculture purposes
2. 2) Maximum of Rs.25.00 Lakh for non priority sector loans.

Repayment period for Gold Loan

1. 1) Agriculture: The repayment period may be fixed as per anticipated harvesting and marketing period for the crops for which loan is granted. For demand loan, repayment period shoold be fixed based on the income generation coinciding with harvest and marketing time, total period not exceeding 18 months.
2. 2) For term loan,the repayment period of the loan shoold be fixed in line with the term loan purposes but not exceeding three years coinciding with harvesting and marketing season//generation of income from the activity.
3. 3) Non Agriculture purposes :Tenor of loans shall not exceed 12 months from date of sanction..

Forms & Documents

1. 1) Appropriate DPN note, Gold loan pledge form, Letter of continuity,  Hypothecation of crops/assets –Agriculture ,Hypothecation of assets other than Agriculture ,Letter of general lien and setoff, Undertaking from borrower /Guarantor for disclosure to CIBIL and any other document stipolated in sanction.



Details of modifications in guidelines for Union Gold Loan Scheme are as under: -

SNO	EXISTING GUIDELINES	MODIFIED GUIDELINES
01	Gold Loan Scheme guidelines- Modified For Gold Loans above Rs.25. lakhs	For Gold Loans above Rs.25. lakhs. To continue Deviation in ClBlL score of less than 650 can be permitted by the Regional Head subject to satisfying reasons for low CIBIL score on a case to case basis to the existing customers not having any credit facility from our Bank. To continue To continue
	Minimum CIBIL Score of 650 and equivalent to be ensured for new customers. Minimum CIBIL score of 650 and equivalent to be ensured for existing customers not having any credit facilities from our Bank. No deviation is allowed in case of ClBlL Score below 650.
	Borrower with existing credit facilities and proven track record, CIC score shall not be applicable. If there are defaults on credit cards or otherwise as reported by ClBlL/Credit Information companies up to Rs 2.00 lakhs and the applicant produces sufficient proof for having removed default, the credit facilities can be sanctioned by the respective delegate on being satisfied with the proof of removal of default.
02	Gold Loans can also be sanctioned for all eligible purposes under other priority Sectors. Typical requirements under other priority sector are loans for day to day working capital requirement of business unit, petty trade, purchase of business tools, furnishing of business premises, purchase of furniture and fixtures etc. The loan amount wiII be sanctioned based on a declaration by the borrower.	Non-agricultural Gold Loans to individuals in the business activity may be classified under MSME. Branches to obtain Udyam registration number of the MSME business activity as per norms including relaxation/extension given by the Government and the same to be mentioned in the appraisal note/sanction letter and fed in finacle for ready reference. Branches can generate Udyam registration number instantly if borrower does not possess.
	Additional weightage	Only Hall Mark Gold
4	Union Krishi Kamadhenu Gold Loan scheme: Margin:20%---12 months tenure	Margin as per tenor of Loan