Co-lending Gold Loans

Secured loan that customers can avail under co-lending model in lieu of pledging the gold collaterals like Jewellery, Ornaments & Coins (specially minted).

Gold valuation /Assaying

Intrinsic value of the gold arrived by assaying the gold for impurities (Alloys/lac etc) and by deducting the weight precious stones / gems etc contained in it. Gold assaying is done by the co-lending partner using any of the methods like Stone Test, Acid Test, Color test, stone and wax weight assessment, Verification of Hallmarking etc.

Day price of gold considered will be lower of the two;

• The average closing price for gold of that specific purity over the preceding 30 days, or
• The closing price for gold of that specific purity on the preceding day

as published either by the India Bullion and Jeweler’s Association Ltd. (IBJA) or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI)

If price for the specific purity is not directly available on IBJA / Commodity exchange, then the published price of the nearest available purity will be used and proportionately adjust the weight of the collateral based on its actual purity to arrive at valuation.

Storage & Release of Pledged Gold - Gold will be securely stored and released by co-lending partner at its branch.

• Individual (18-75 years).
• Have Officially Valid Documents as KYC (Aadhaar / Driving License / voter ID /Passport / Job card issued by NREGA).
• PAN or Form 60 Mandatory
• Applicant must provide Personal Details, Household details, Business / Activity Details, Income Details etc. as applicable for the bank to decision the case.
• Eligible gold collateral with purity 18k to 24k

Customer final loan eligibility will be determined basis the loan eligibility criteria set for the specific product.

Loan Purpose - Consumption & Income Generating

Loan Amount - Basis credit assessment, market value of the gold being pledged and repayment capacity a maximum loan ticket size of Rs.10 lakhs. 

Loan-to-Value Ratio (LTV) - The LTV would range between 85% -75% of the gold’s value based on Regulatory guidelines issued from time to time

Tenure - 3 months to 36 Months*

*For loans where interest is payable other than on monthly basis (i.e. quarterly, half yearly, 9 months etc.) OR where both interest and principal are due for payment at maturity of the loan (also known as bullet repayment loans), shall be capped to 12 months.

Rate of Interest - Upto 30%

Types of Repayment Option

• Bullet Payment – Both interest and principal are due for payment at maturity of loan.
• Interest due at fixed intervals: Loans where interest is due at fixed intervals (Monthly/ Quarterly/ Half-yearly/, Annually) and principal is due at the maturity of the loan/ end of tenure.

*Charges

• Processing fee
• Demand Notice
• News Paper publication Charges for Auction
• Loan Recall Notice
• Auction Notice
• Auction charges
• Pre-payment penalty
• Penal charges
• Valuation charges
• Stamp duty charges
• Storage Charges
• Charges for lost pledge token

*Above charges may differ from co-lending partner to partner, the specific will be available in gold  loan documentation

Note: The product features and charges may differ from one co-lending partner to another.