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  • Gold Loan – Non-priority sector - Monthly interest payment

Purpose of Gold Loan

  • To meet Medical Expenses and Meeting Unforeseen Liabilities /investments/domestic expenses.


  • 1. Any individual owning gold ornaments/Jewellery/Coins, either singly or jointly.
  • 2. Existing as well as new customer, whose willingness to open account with us.

Assessment of Loan Amount

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


B. 70% 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)


C. Amount eligible based on the per gram 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).


D. Loan amount assessed based on Credit requirements.

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


  • 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 Rs.50 extra per gram can be given under this scheme for gold loan repayable within 12/6 tenure.

Quantum of Loan Amount

  • Min-NA
  • Max- 50 lakh
  • For Hall-marked gold of 20 karat maximum quantum of loan amount shall be restricted to Rs 5.00 lakhs per borrower


  • Margin 30% for 22 karat fineness
  • Margin 35% for 20 Karat fineness of Hall mark Gold ornaments

Appraisal Charges

S No.

Loan amount

Processing Charges


Loans up to Rs 5.00 lakhs

0.40% of loan amount with a minimum of Rs.100.00 and maximum of Rs.500.00 per Case + GST


Loans above Rs 5.00 lakhs - up to Rs 10.00 lakhs

Rs 600.00 per Case + GST


Loans above Rs 10.00 lakhs

Rs 750.00 per case + GST

#Subject to revision from time to time


  • Maximum Tenure-12 Months.
  • Interest will be charged to the account at monthly rests and demanded on monthly. Interest to be serviced as and when debited.
  • LTV of 75 per cent shall be maintained throughout the tenure of the loan for all loans extended against pledge of gold ornaments and jewellery for non-agricultural purposes. The LTV ratio shall be computed against the total outstanding in the account including outstanding in the account including accrued interest and current value of gold jewellery accepted as security / collateral, determined as per the methodology prescribed in the Operational guidelines circular

Rate of Interest

For 22 karat-

Up to Rs 5.00 lakhs


Above Rs 5.00 lakhs and Up to Rs 25.00 Lakh


Above Rs 25.00 lakh


  • For below 22 karat- 25 basis point higher than 22 karat.

#Subject to revision from time to time

Processing charges

  • 0.50% of loan amount or Max. 1000

#Subject to revision from time to time