MainMenuEnglishLevel-2_MainMenuEnglishLevel-2_Gold_loan_2011.pdf

7/30/2019 MainMenuEnglishLevel-2_MainMenuEnglishLevel-2_Gold_loan_2011.pdf

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CENTRAL OFFICE, CHANDER MUKHI

NARIMAN POINT, MUMBAI-400021

CENT GOLD LOAN SCHEME (Priority Sector)

Nature of Facility Demand Loan facility against Gold Ornaments (D/L Agri)

Eligibility All types of agriculturists, who are carrying out production orientedactivities, irrespective of size of holding, agricultural labourer, rural

artisans etc, are eligible to avail loan under the scheme.

Borrower should be a local resident and his identity should beproperly established before sanctioning the loan.

Purpose To meet agricultural expenses for crop production, purchase of milch

animals, sheep, poultry and other allied activities, including recurringexpenses incurred on minor irrigation, land development, farm

mechanization etc. and also to meet consumption needs of family.

Quantum of Finance Rs. 2000/- per gram of gold or 80% of bullion Market rate of 22 carat

gold per gram whichever is less. Maximum limit per borrower Rs 5

lakhs. The gold ornament can be either hall marked or otherwise.

Margin The branches should monitor the market price of gold and sanction the

loan by keeping atleast 20% margin subject to Rs. 2000/- per gram

(Maximum)

Security Pledge of ornaments with the bank.

Processing charges Upto Rs 25000/- Nil

Above Rs 25000 uptoRs 2.00 lacs Rs 500.00

Above Rs 2.00 lacs uptoRs 5.00 lacs

Rs 250 per lac or partthereof

Rate of Interest Same as applicable to Agricultural advances subject to change in the

interest by Central office from time to time. The present rate is as

follows. Existing rate is as follows:

a. Agriculture

1. All gold loans upto Rs 3.00 lac extended for Agricultural

purpose will continue to attract rate of interest at 7.00% p.a withinterest subvention as hitherto.

2. For other casesLimit Rate of interest%

Upto Rs 50000 Base rate +0.50

Above Rs 50000 upto Rs 2.00 lacs Base rate +1.00


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Above Rs 2.00 lacs upto

Rs 5.00 lacs

Base rate +2.00

b. Other priority sector

Based on activity as per extant interest rate guidelines

Repayment One year with roll over facility for further period of one year.

Documents Demand Pro-note

A suitable letter of authority for payment of cash or for credit ofthe amount to the savings/current account as the case may be

obtained from the applicant.

Agreement ( letters of declaration cum pledge as per schedule ofdocuments appended)

Appraisers certificate.

Appointment ofGold Appraiser

The Branch Manager should obtain the application of a reputedjewel appraiser of the area with 2 testimonials and forward thesame to Zonal Office, with his recommendations.

The appraiser has to execute an Indemnity bond in favour of thebank and give minimum deposit of Rs. 5000/- to the bank.

The fees of the Jewel Appraiser must be kept to the minimumand his fees must be recovered from the borrower only.

Terms and condition for engaging Appraiser is enclosed as Annexure V

Appraisers Charges Upto Rs. 50000/- Rs. 3.50 per thousand with minimum Rs.

25.00 max. Rs 150.00

From Rs. 50001 to Rs

1.50 lacs

Rs. 3.50 per thousand with minimum Rs.

25.00 max. Rs 250.00

From Rs. 150001 toRs 3.00 lacs

Rs. 3.50 per thousand with minimum Rs.25.00 max. Rs 350.00

From Rs. 300001 to

Rs 5.00 lacs

Rs. 3.50 per thousand with minimum Rs.

25.00 max. Rs 500.00

Other terms and

condition Gold loan can be allowed on declaration by the borrower having

land as is used for production or allied activities or for other

priority sector activities.

Declaration from the borrower that the ornaments belong tohim/her and has a right to pledge them and that no once else has

a claim or interest therein.

Gold will be tested /appraised about the purity by Jewel Appraiser inpresence of the borrower, Bank official.


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Flow Chart of Gold loan financing

CustomerApproaching Branch

Office with jewels for goldloan

Jewel Appraiser Verifying the purity of

gold Note the particulars

item viz. Gross Weight,Net Weight, Purity,Rate per gram andestimated value of

gold/jewels

Branch ManagerVerifying the ownership of

jewels

Appraisal of Gold/Jewels