Gold Loan Policy
Gold Loan Overview
The company provides demand loans against 22-carat gold jewellery for up to 12 months. Loans can be taken for business, personal, or domestic needs—not for illegal or speculative purposes. Only individuals who legally own the jewellery and meet RBI KYC requirements are eligible.
Gold Eligibility & Loan Amount
- Loan amount depends on net gold weight, purity, and RBI LTV limits
- Minimum: 1 gram and ₹1500 loan
- Stones (diamond, pearl, coral, etc.) are deducted from the weight
- Ownership of gold must be verified; above 20g, the customer must explain how they acquired it
- Third-party pledging allowed only with notarized Power of Attorney
Interest, Charges & Repayment
- Interest rates and charges follow the company's board-approved policies
- Minimum interest period: 7 or 15 days depending on scheme
- Minimum interest: ₹100
- Penal interest applies if dues are unpaid after the due date
- Additional charges may include processing, security, appraisal, notice, SMS, stamp duty, and auction-related charges
- Loans can be renewed only after fully closing the old loan, with new eligibility based on current LTV
Jewellery Handling, Release & Risk Controls
- Jewellery is appraised for purity, packed securely, and stored in the strong room
- Released only after full repayment and verification of documents/ticket
- Lost pawn ticket requires indemnity
- For deceased borrowers, jewellery is released to legal heirs
- Fraud, spurious gold, or stolen gold must be reported immediately to management and police
- Regular internal audits ensure correct handling, purity checks, and compliance
Default, Auction & Recovery
- If the borrower does not close the loan even after reminders, the gold is auctioned
- Minimum 14-day notice before auction
- Public announcement in one local and one national newspaper
- Company cannot bid in the auction; borrowers may participate
- Auction proceeds are used to settle outstanding dues; excess is refunded, shortfall is recoverable
- Asset classification and income recognition follow RBI norms
FAQs
You can get up to 75% of the gold value as loan amount, as per RBI guidelines. The exact amount depends on the purity and current market value of your gold ornaments.
Gold ornaments should be of minimum 18 karat purity to be eligible for a gold loan. We use electronic gold testing machines to determine the exact purity.
Gold valuation is done using electronic gold testing machines in your presence. The valuation is based on current market rates, purity, and weight of the ornaments.
Yes, your gold ornaments are stored securely in bank lockers and are covered by insurance. We maintain detailed documentation with photographs for complete transparency.
Yes, you can prepay your gold loan at any time without any prepayment penalties. This helps you save on interest costs.
In case of default, we have the right to auction the gold ornaments as per RBI guidelines. Any surplus amount after recovering the dues will be returned to you.