Product

• Union MSME Gold Loan Plus

Objective

• To provide hassle-free credit to MSME units to meet the financial requirements of the business including day to day working capital requirements, petty trade, for expansion of business units etc.

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.
• Branches to ensure that all KYC/AML norms are complied with for all borrowers.
• Pawn brokers and jewellery shop owners are not eligible under the scheme.

Purpose of Gold Loan

• 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.

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 Period

• 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

Security

• Pledge of Gold Ornaments/Jewellery/Coins

Rate of Interest

• As per Gold Loan Interest rate table.

Service Charges

• No processing charges for limits upto Rs 10 lakh.
• Rs 500/- + GST flat for limits above RS 10 lakh.

Appraisal Charges

• Appraisal charge of 0.40% of loan amount with a maximum cap of Rs.500/- and minimum of Rs. 100/-

Benefits

Processing Charges:- As per below table:-