A. Any Farmers, Agriculturist, Businessman, other existing clients having satisfactory dealings with the bank and any other persons introduced by the reputed existing clients are eligible for taking a loan under this scheme.
B The applicant must be above 18 years of age at the time of applying for the loan. So anyone who is aged 18 years and above can easily avail the loan if he or she matches the other mandated criterion, but applicants more than 70 years of age cannot apply for the loan under this scheme.
C. The loan amount can also be used for Agriculture &Allied Activities, consumption or domestic or medical purposes (but not for speculative purposes) and for meeting business needs.
D. Loan can be availed by pledging gold ornaments or jewellery of the applicant. Gold coins can also be pledged to avail a loan under this scheme.
E. A margin of 25% is maintained with the bank under the loan scheme. It means that the full value of the pledged ornaments is not granted as loan. Only the 75% value of the pledged ornaments including gold coins is granted as the loan amount.
F.The loan sanction and disbursal process is fast and simple. The documents required are simple in nature and after submitting the necessary documents, the loan is issued instantly. Disbursement can be made either by credit to the Savings Account or Current Account or any other appropriate account of the borrower.
G. The bank charges low interest rates for Gold Loans so that the customers can afford the loan repayment easily without having to worry about the high interest rates.
H. The loan is issued for tenure of a maximum of 5 years in case of term loan and in case of cash credit it is repayable on demand. Thus the individual who avails the loan needs to make sure that the EMI payments will start immediately from the after the month of loan disbursement and has to be completed within 5 years.
I.As per banks policy there is no processing fees for processing the loan and there is no pre-payment penalty if the customer pays the loan earlier than the stipulated time.
J.The valuation of the Gold/ Gold Jewellery and Ornaments/ Gold Coins specially minted and sold by the Banks offered as security shall be done by the Shroff / Jewel Appraiser approved by the Bank. The borrower should bear the actual valuation charges.