Product

• Union Swarna Shakti Loan Scheme-Retail

Eligibility

• Any individual 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 meet the financial requirements of the educational purposes including vocational courses and for construction/purchase of dwelling units

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.20 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 thereon.

Security

• Pledge of Gold Ornaments/Jewellery/Coins

Rate of Interest

• As per Gold Loan Interest rate table.

Processing Charge

Processing Charges:- As per below table:-

Appraisal Charges

For Loans upto Rs. 5.00 lakhs:-

0.40 % of the loan amount with a Minimum of Rs 100/- and Maximum of Rs 500/- per case + GST

Loans above Rs 5.00 lakhs - up to Rs 10.00 lakhs;-

Rs 600/- per case + GST

Loans above Rs 10.00 lakhs-

Rs 750/- per case +GST