FINANCING AGAINST PLEDGE OF GOLD ORNAMENTS/JEWELLERY/GOLD COINS FOR AGRICULTURE

  • Purpose
    • To meet the short-term production / investment credit for genuine Income Generating Agri purposes:
    • Crop production/ allied agriculture activities.
    • Acquiring farm machinery, irrigation equipment, taking up horticulture activity, transport vehicle for transporting agri. produce etc.
    • Repayment of loans availed from non-institutional lenders.
    • All other agriculture activities which are permitted to be classified under agriculture as per RBI/GoI/NABARD guidelines.
  • Eligibility
    • All farmers: Individuals/ Agri. entrepreneurs including Tenant farmers, Oral lessees and Sharecroppers.
    • Any person engaged in any agriculture or allied activities as well as persons engaged in activities permitted by RBI to be classified under agriculture.
    • In case loan is to be utilized for repayment of loan availed from non-institutional lenders a self-declaration has to be obtained from the applicant that he/she is engaged in Agri. and allied activities and that the loan availed against the pledge of gold ornaments is for repayment of higher interest rate loans availed from non –institutional lenders.
    • Borrower should be KYC compliant.
    • Declaration for Agriculture Gold Loan: For sanction of Agriculture gold loan up to the loan limit of Rs 2.50 lakh, a self-declaration must be obtained from the applicant.
    • For loans above ₹ 2.50 lakh evidence of land holding record and/or valid documentary proof of Agri activities is to be obtained.
    • The borrower must be having regular source of Income to service the Interest/EMI in the account (Including projected income).
  • Nature of Facility
    • Demand Loan (Bullet Repayment)
    • Demand Loan (EMI Based)
    • Overdraft Facility
  • Extent of Loan (per borrower)
    • Minimum Loan: Rs. 10000/-
    • Maximum Loan: Rs. 25.00 lakh
  • Margin
    • 15% (at the time of sanction)
  • Security
    • Pledge of Gold Jewellery / Ornaments / Coins.
    • No loan to be sanctioned against bullion, primary/ smuggled gold.
    • In case of ornaments with jewel fittings, infilling, net weight as certified by assessor shall be considered for determination of quantum of loan.
  • Repayment Period
    • Demand Loan: EMI based (Max 36 months)– Regular servicing of interest and principal as and when levied.
    • Demand Loan: Bullet Repayment (max. up to 12 months) -Payment of interest and principal at maturity.
    • Overdraft: The overdraft facility will be sanctioned for a period of 12 months only subject to annual renewal. Servicing of interest as and when due and levied.
  • Processing fee/Upfront Fee/Documentation Charges/Other
    • Sanction limit: Upto ₹50000
      • Processing fee/Upfront Fee: NIL
    • Sanction limit: Above ₹ 50000
      • Processing fee/Upfront Fee: ₹500 +GST
  • Other Charges
    • CIC (CIBIL, Equifax etc.) charges as applicable (presently Rs 100 + GST.)
    • Valuation Charges (Appraisal charges): – Applicable Gold Appraiser Fee should be borne by the customer. The valuer will be paid ₹ 5/- per thousand with minimum of ₹500/- and maximum ₹1200/-.
    • Re-appraisal Charges: – The appraiser will be paid ₹150/- per pouch at the time of revaluation of Jewellery.
    • Safe keeping charges: – ₹ 100/- per month or part thereof to be charged and to be recovered after the expiry of the prescribed tenure of gold Loan for every type of loan facility (Currently 12/36 months respectively) as Safe Keeping charges after closure of loan facility.
    • Upto ₹2.50 lakh: 0.25% of the loan amount +GST (Maximum upto ₹5000 + GST)
    • Above ₹2.50 lakh
    • Documentation Charges (upto Rs 25.00 Lakh) -Nil