Product

• Union Gold Loan-Agriculture

Purpose of Gold Loan

• Gold loans for meeting crop production expenses and /or for creation of assets to be used in farming operation or for allied agricultural activities like dairy, poultry, fisheries, etc. and other agriculture activities.

Eligibility

• 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.
• Existing as well as new customer, whose willingness to open account with us.

Assessment of Loan Amount

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 Hallmark Gold ornaments of below 22 carat upto 20 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- up to 50 gram per customer) 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.100 lakhs
• For Hallmark gold of 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 20 Karat

(Gold Purity Below 22 Karat and up to 20 Karat accepted in branches fallen in 7 Designated zones Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal and Jaipur.)

Repayment

• Maximum 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.

Security

• Pledge of Gold Ornaments/Jewellery/Coins.

Rate of Interest

For 22 Karat

For below 22 Karat- 25 basis point higher than 22 Karat
#Subject to revision from time to time 

Processing Charges:- As per below table:-

Processing charges

Processing Charges:- As per below table:-

Appraisal Charges

For Loans up to Rs. 5.00 lakhs:-

• 0.40 % of the loan amount with a Minimum of Rs 100/- and Maximum of Rs 500/- per case + GST
• Loans above Rs 5.00 lakhs - up to Rs 10.00 lakhs;-
• Rs 600/- per case + GST
• Loans above Rs 10.00 lakhs-
• Rs 750/- per case +GST

Benefits

• Principal repayment schedules may be fixed at monthly, quarterly, half yearly, yearly installment or bullet repayment depending on income generation and/or seasonality.
• For Agricultural Gold Loan, repayment of loan should coincide with harvesting/marketing of crops. As regard to agricultural gold loan for agricultural and allied agricultural activities such as dairy, fishery, piggery, poultry, bee-keeping, etc., Branches should take into consideration due dates fixed on the basis of fluidity with borrowers and harvesting/marketing season while charging interest and compounding the same if the loan/installment becomes overdue.
• For demand loans, repayment period should be fixed based on the income generation coinciding with harvest and the marketing time, total period not exceeding 18 months.
• For term loan, the repayment period of the loan should be fixed in time with the term loan purposes but not exceeding 3 years.
• White fixing repayment schedule, Branches may ensure that anticipated exposure on due date along with interest accrued/other charges do not exceed the present value of pledged Ornaments/Coins