Product

• Gold loan - Agriculture Above Rs 25 lakhs

Purpose of Gold Loan

• The farmers, engaged in agriculture, cultivating own and /or leased land or engaged in cultivation of crops.
• Farmers in allied activities like dairy, poultry, fisheries, piggery, sheep rearing etc.
• Entrepreneurs and farmers who need investment credit for acquiring farm machinery, undertaking land development, irrigation, horticulture, transportation of agriculture produce etc.
• All other farming activities which are permitted to be classified under agriculture as per RBI/GOI/NABARD guidelines.

Eligibility

• All farmers: individuals who are owner cultivators, Agri entrepreneurs
• Tenant farmers, oral lessees and sharecroppers.
• Any person engaged in any agriculture or allied activities and wants to repay loans availed from non-institutional lenders as well as persons engaged in activities permitted by RBI to be classified under agriculture. A self-declaration has to be obtained from the applicant that he/she is engaged in Agri and allied activities and that the loan availed Against the pledge of gold ornaments is for repayment of higher interest rate loans availed from non-institutional lenders.

Assessment of Loan Amount

• A. Loan amount requested by Applicant/assessed amount on declaration;

OR

• B. 75% of the appraised value of Gold Ornaments of 22 Karat fineness (65% of the appraised value of Hall mark Gold ornaments of below 22 Karat up to 20 Karat fineness applicable to 7 designated zones i.e., Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal and Jaipur)

OR

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

OR

• D. Loan amount assessed based on Credit requirements like Agriculture, Allied activities, Agriculture infrastructure and ancillary activities as the case may be.

Eligible loan amount: A/B/C/D -WHICHEVER IS LOWER

Note:

• Specially minted gold coins sold by any Bank (24 Karat fineness) up to 50 grams shall be treated as gold ornaments (22 karat fineness) for loan assessment purpose.
• If gold ornaments are of Hall mark 22 Karat fineness additional advance of Rs.50 per gram can be given under this scheme.

Quantum of Loan amount

• Min- Above Rs 25.00 lakhs
• Max- Rs 50.00 lakhs

Maximum number of loans to a single borrower under branch delegation:-5

For above 5 loans to a single borrower, RO permission to be taken

Margin

• 25%

Repayment

• Maximum Tenure-12 Months.
• Bullet payment or in part payments but the loan must be repaid within 12 months along with accrued interest thereon.

Appraisal charges:

• Rs 750/- per case +GST

Rate of Interest

• For 22 karat: 1 Year MCLR + 0.10%

#Subject to revision from time to time.

Processing charges

• Rs 500 + GST

#Subject to revision from time to time

Proof of Activity

For all loans branches to obtain

• land records like Adangal /Pahani /ROR/RTC/Khata extract, Khata passbook in case of land-based activities.
• Permission letter issued by local authority to carry out their activity in case of allied activities.

Farm mechanisation/ Entrepreneurs - bills evidencing the activities or proof of pursuing the activity