- 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.
- Upto 12 months (Maximum 12 months) for bullet loan scheme.
- 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.
- 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.
- 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.