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
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)
Amount eligible based on the per gram rate fixed by the bank for 22 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.20 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 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
NIL
Appraisal Charges
Appraisal charge of 0.40% of loan amount with a maximum cap of Rs.500/- and minimum of Rs. 100/-
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