Product

• Union Gold Loan-Retail

Purpose of Gold Loan

• Gold loan for consumption purpose are sanctioned to meet unforeseen expenses/ contingencies / expenses for medical treatment/for marriage and other ceremonies/ expenses for Education/ Business needs etc.

Eligibility

• Any individual owning gold ornaments/Jewellery/Coins, either singly or jointly.

• Loans can be granted against gold ornaments/Jewellery and specially minted pure gold coins sold by our bank/other bank. The total weight of the coins should not exceed 50 grams per customer.

• Existing as well as new customer, whose willingness to open account with us.

Assessment of Loan Amount

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;

OR

75 % of the appraised value of Gold Ornaments of 22 carat fineness (65% of the appraised value of Hall mark Gold ornaments of below 22 carat up to 18 carat 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 22/20/18 carat fineness.

Whichever is lower

Specially minted gold coins sold by any Bank (24 carat fineness) shall be treated as gold ornaments for loan assessment purpose.

If gold ornaments are of Hall mark 22 carat 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 75% of assessed gold value

Quantum of Loan Amount

• For 22 Karat-Maximum amount of loan is Rs.50 lakhs

• For Hallmark gold of 18/20 Karat-Maximum quantum of loan amount shall be restricted to Rs. 5 lakh per borrower.

Margin

• 25%- 22 karat

• 35%- Below 22 karat & up to 18 Karat

(Gold Purity Below 22 Karat and up to 18 Karat accepted in branches fallen in 7 Designated zones Chandigarh, Delhi, Lucknow, Ranchi, Varanasi, Bhopal and Jaipur.)

Repayment

• Maximum Tenure-12 Months.

• Can be repaid in lump sum or in part payments but the loan must be repaid within 12 months along with accrued interest thereon.

Security

Pledge of Gold Ornaments/Jewellery/Coins.

Rate of Interest

• As per Gold Loan Interest rate table.

Processing charges

• 0.50% of loan amount or Max. 1000

Appraisal Charges

• Appraisal charge of 0.40% of loan amount with a maximum cap of Rs.500/and minimum of Rs. 100 /-