Product

• Union Swarna Sakthi Loan Scheme – USSLS: (Non - priority sector – Bullet Repayment)

Eligibility

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

Purpose of Gold Loan

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

Assessment of Loan amount

• 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 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.

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 for gold loan repayable within 12/6 tenure.

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 35% - 12 months tenure (22 karat) & (Below 22 Karat up to 20 Karat).
• Margin 30% - 6 months tenure (22 karat)

Repayment Period

• Maximum Tenure-12 Months - Bullet repayment (or) Maximum Tenure - 6 Months -Bullet repayment.
• 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.