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Scheme Code

GOLD LOAN –(Priority Sector-Agriculture)- UKKGL


To provide hassle-free credit to farmers to meet the emergency requirement for income generating agriculture, allied activities and food & agro processing activities.


These guidelines will govern loan extended to individuals against security of Gold ornaments/Coins. However Gold loan for domestic Jewellery manufacturers /Exporters is outside the purview of this policy. The scheme will encompass exposure to individual/joint individual customers only.

Implementation of the scheme

The Gold Loan Scheme shall be implemented through all Branches of the Bank. The Branches where Gold Loan Scheme is not presently implemented would obtain prior approval from their respective Regional Office.

Regional offices shall implement the scheme after ensuring provision of proper infrastructure including security and manpower.


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

Loans can be granted against gold ornaments/Jewellery and specially minted pure gold coins sold by our bank/other bank. The total weight of the coins should not exceed 50 grams per customer.

The applicant should be properly introduced to the Bank or his identity and address should be established by verifying ration card/identity card/ passport/Aadhaar Card/PAN card/similar documents acceptable to the Bank. Branches are to ensure that all KYC/AML norms are complied with for all borrowers.

Purpose of Gold Loan

Finance to Agriculture, allied activities.

Finance to food and agro processing activities.

Assessment of loan amount

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;


80 % of the appraised value of Gold Ornaments of 22 carat fineness;


Amount eligible based on the per gram rate fixed by the bank for 22 carat fineness (daily price data and the Quantum of Gold Loan/Per gm to be taken from link created in UBINET).

Whichever is lower

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

Loan Amount

Maximum amount of loan is restricted to Rs.5 lakhs per borrower and the loan is exclusively for the purpose of Agriculture, Allied Activities and food & agro processing activities only based on declaration.


20% (Minimum)

Nature of facility

Loans against gold ornaments can be sanctioned in the form of Demand loan.

Repayment Period

Tenure-12 Months.

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

Branch to ensure sufficient LTV ratio is maintained throughout the tenure of the DL Facility.


Pledge of Gold Ornaments/Jewellery/Coins.

Rate of Interest

One year MCLR (Presently 7.25%)

Service Charges

Nominal charges of Rs.100/-

Appraisal Charges

Appraisal charge of 0.40% of loan amount with a maximum cap of Rs.500/and minimum of Rs. 100 /- per case are to be recovered from the borrower.

The appraiser fee shall be recovered from the borrower. In case where appraisal exercise is initiated in standard account by the Bank for the purpose of authentication of original appraisal, the charges will be borne by the bank.

The above appraisal charge is the ceiling limit for payment of fees. However, Regional Heads are empowered to prescribe lower fees at Branches in their Region for renewal as well as new accounts based on the prevailing competitive situation at local level.