Product

• Union Secured Overdraft Gold Loan

Purpose

• Overdraft can be allowed for Agriculture and Allied activities, Business activities, consumption purposes and contingencies.

Eligibility

• Any individual owning gold ornaments/jewellery/coins, either singly or jointly having savings bank accounts with our Bank.

• 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.

• Union Bank of India Staff are not eligible under this scheme.

Assessment of Loan Amount

Loan amount requested by Applicant/assessed amount on declaration;

OR

75% of the appraised value of Gold Ornaments of 22 carat fineness

OR

Amount eligible based on the per gram rate fixed by the bank for 22 carat fineness.

OR

Loan amount assessed based on Credit requirements like Agriculture, Allied activities, MSME, other Priority Sector, Retail, Non-Priority Sector, as the case may be.

WHICHEVER IS LOWER

Specially minted gold coins sold by any Bank (24 carat fineness- up to 50 gram per customer) shall be treated as gold ornaments for loan assessment purpose.

Quantum of Loan Amount

For 22 Karat only

• Only one SOD account per customer are allowed

• Minimum Amount – Rs.5.00 Lakhs

• Maximum Amount – Rs.50.00 Lakhs

Margin

• 25%-22 karat

Security

• Pledge of Gold Ornaments/Jewellery/Coins.

Rate of Interest

• As per Gold Loan Interest rate table.

Processing Charges (Fresh & Renewal)

• Rs.1000/- + GST

Gold Appraisal Charges (Fresh & Renewal)

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