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. 60% of the appraised value of Gold Ornaments of 22 Karat fineness

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 months 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

• 40%

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.