Product

• Union Gold Loan-Retail

Purpose of Gold Loan

• Gold loan for consumption purpose are sanctioned to meet unforeseen expenses/ contingencies / expenses for medical treatment/for marriage and other ceremonies/ expenses for Education/ Business needs etc.

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

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;

OR

Bullet payment option:-

65% of the appraised value of Gold Ornaments of 22 Karat fineness (65% of the appraised value of Hallmark Gold Ornaments of below 22 Karat up to hallmarked 20 Karat fineness applicable to 7 designated zones like Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal, and Jaipur)

Monthly interest payment option:-

70% of the appraised value of Gold Ornaments of 22 Karat fineness (70% of the appraised value of Hallmark Gold Ornaments of below 22 Karat up to hallmarked 20 Karat 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 Karat fineness Whichever is lower

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

If gold ornaments are of Hallmark 22 Karat 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 65% and 70% of assessed gold value under bullet payment option and monthly interest payment option respectively

Quantum of Loan Amount

• For 22 Karat-Maximum amount of loan is Rs.50 lakhs
• For Hallmark gold of 20 Karat-Maximum quantum of loan amount shall be restricted to Rs. 5 lakh per borrower.

Margin

35% - 22 Karat (Bullet payment option)

30%-22 Karat (Monthly interest payment option)

35% -Below 22 Karat up to 20 Karat (Hallmarked)-Bullet Payment option

(Gold purity below 22 Karat and up to 20 Karat (Hallmarked) accepted in branches coming under 7 designated zones Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal, and Jaipur)

30% Below 22 Karat up to Hallmarked 20 Karat-Monthly Interest Payment option ( Gold purity below 22 Karat and up to hallmarked 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

• As per Gold Loan Interest rate table.

Processing charges

• 0.50% of loan amount or Max. 1000

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