Product

• Union MSME Gold Loan Plus - (UMGLP) – MSME – Bullet repayment:

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. Branches are to ensure that all KYC/AML norms are complied with for all borrowers.
• UDYAM/MSME/SSI registration is mandatory.

Assessment of Loan amount

Limit under Gold Loans is to be assessed as under:

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

OR

• B. 65% /70% of the appraised value of Gold Ornaments of 22 Karat fineness (65% of the appraised value of Hall mark Gold ornaments of 22 Karat fineness for 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 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 MSME, other Priority Sector 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 Rs.50 extra per gram can be given under this scheme.

Quantum of Loan Amount

• Min- NA
• Max- 50.00 lakh

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

Repayment Period

• 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 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-

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

#Subject to revision from time to time

Processing Charge

#Subject to revision from time to time.

Appraisal Charges

#Subject to revision from time to time.

Benefits

#Subject to revision from time to time.