Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Gold loans are often used for short term household requirements, business purposes etc. However, in terms of the cost and ease of availing the loan, and the convenience, gold loans are a better bargain.
At present Four types of gold loan will be issued from the bank
a) Short term Gold loan --- Duration 3 months
b) Medium Term Gold Loan ----Duration 6 months
c) Gold loan General --- Duration 1 Year
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Purpose
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To meet the credit needs of trade, commercial activity, other general business, real estate as also for their bonafide requirements.
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Eligibility
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Anyone who owns gold ornaments can avail the loan provided he/she is a member or nominal member of the bank.
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Procedure
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Submit the gold ornaments (within a karat range of 18 to 24 k) along with the application in the prescribed format at the branch. The loan will be sanctioned on the base of the gold valuation which involves verification of its purity.
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Repayment
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Customers are free to repay part amount of loan and/or accrued interest thereon at anytime.
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Rate of interest
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The Bank will charge a minimum interest for 15 days and beyond that the interest will be calculated per day basis .
1 Upto 3 Months 8.00% pa
2 Above 3 Month to 6 Months 9.50% pa
3 Above 6 Months to 1 Year 10.00% pa