1.          

  Eligibility

• Any individual MSME including Proprietorship firm, Business owners, Women Entrepreneurs, Self- employed professionals, Individuals doing Retail/Wholesale trade business 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.

2.          

Purpose

Finance to MSME units engaged in the trading, services and manufacturing sectors for their business requirements like day to day working capital requirements, petty trade, for expansion of business units etc. The loan amount will be sanctioned based on a declaration by the borrower.

3.          

Facility

Demand Loan

4.          

Quantum

Maximum: Rs 50.00 lakh

5.          

Assessment

• 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 22/20/18 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 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.

6.          

Margin

• Margin 25% for 22 karat fineness
• Margin 35% for 20/18 Karat fineness of Hall mark Gold ornaments

7.          

Interest Rate

For 22 Carat Gold - EBLR – 0.45% p.a. to EBLR + 0.10% p.a.

(0.25% higher for 18/20 Carat Gold)

8.          

Charges

No processing charges for limits upto Rs 10 lakh. Rs 500 + GST for limits above Rs 10 lakh.

(Processing charges waiver for the month of October 2022)

9.          

Security

Pledge of Gold Ornaments/Jewellery/Coins

10.       

Repayment

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.