Gold Loan

• The gold loan, also referred as a loan against gold, is a secured loan that a borrower takes from a lender in lieu of gold ornaments such as gold jewelry.

REPAYMENT PERIOD:-

1. Upto 12 months (Maximum 12 months) for bullet loan scheme.
2. Upto 36 months (Maximum 36 months) for general gold loan scheme.

However repayment period of Gold loan is subject to changes in accordance to RBI guidelines / directives from time to time.

MARGINS:-

1. General Gold Loan:

• In order to standardize the valuation and make it more transparent to the borrower, gold jewelry accepted as security / collateral will have to be valued at the average of closing price of 22 carat gold for the preceding 30 days as quoted by Indian Bullion and Jewellers Association Limited [Formerly Known as Bombay Bullion Association Ltd. (BBA)]. Loan shall be upto a maximum of 75 % of the valuation of gold ornaments pledged by the borrower.

2. Gold Loan under Bullet Repayment:

• The valuation of gold ornaments shall be done as specified above for general gold loan. The Loan to Value (LTV) ratio shall not exceed 75% of the valuation of gold ornaments, including interest.

GUARANTORS / SURETIES:

• One Surety.