Product

• Union Krishi Kamdhenu Gold Loan Scheme

Eligibility

• Individuals against security of Gold ornaments/Coins. The total weight of the coins should not exceed 50 grams per customer. However, Gold loan for domestic Jewellery manufacturers/ Exporters is outside the purview of this policy. The scheme will encompass exposure to individual/joint individual customers only.
• Loans can be granted against gold ornaments/Jewellery and specially minted pure gold coins sold by our bank/other bank.
• 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. Branches are to ensure that all KYC/AML norms are complied with for all borrowers.
• 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.
• This scheme shall be implemented through all rural, semi urban and selected urban branches only.

Purpose of Gold Loan

• 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.
• The farmers, engaged in agriculture, cultivating own and /or leased land or engaged in cultivation of crops.
• All other farming activities which are permitted to be classified under agriculture as per RBI/GOI/NABARD guidelines.
• Loans sanctioned should be activity and beneficiary specific and are not based on type of collateral

Assessment of loan amount

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

OR

• B. 80% / 85% 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

  • 1. 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.
  • 2. 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- NA
• Max- Rs. 25.00 lakhs

For Hall-marked gold of 20 karat maximum quantum of loan amount shall be restricted to Rs 5.00 lakhs per borrower/customer ID.

Margin

• Margin 20% - 12 months tenure (22 karat)
• Margin 15% - 6 months tenure (22 karat)
• Margin 35% - 12/6 month (Below 22 Karat up to 20 Karat)

Security

• Pledge of Gold Ornaments/Jewellery/Coins

Rate of Interest

• One-year MCLR (22 karat)
• One-Year MCLR+0.25% (Below 22 karat)
• # Subject to revision from time to time

Repayment Period

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

Interest Frequency

• Every 6 months -frequency at the end of the September and March and interest for break period, if any, will posted on due date.

Processing charges

#Subject to revision from time to time.

Appraisal Charges

#Subject to revision from time to time.