The loan is offered against gold jewelry and ornaments and has the following features and benefits:
- The minimum amount of loan provided is Rs.25, 000 and one can avail loans of higher amounts for a maximum of Rs.50 lakhs.
- The repayment options to the customer are flexible and he or she may choose any mode of repayment suiting his or her needs.
- 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
- Loans are also available for short-tern needs of individuals where the tenure is for a short period of time
- Loan is available against the security of gold ranging from 18 Karats to 24 Karats and not lower than that
- The rate of loan offered per gram of gold pledged is higher than that offered by other banks under the same scheme
- The gold deposited with the bank is kept with utmost security with no fear of theft or damage.
- The bank’s reference price for Loan against Gold is Rs.2570 per gram
- The bank does not offer the full value of gold as loan. There is a margin requirement of 30% of the value of the gold which is retained by the bank and the rest 70% is offered as loan
- The maximum rate of lending against the security of 24 Karat Gold is Rs.1799 per gram
- Interest rates are competitive and in tandem with that charged by other banks so that customers may prefer Yes Bank rather than other banks
- No guarantor / collateral are required. A guarantor is someone who guarantees to pay the loan himself/herself if the applicant fails to repay the loan himself. Under the Gold Loan scheme, the bank does not ask for any guarantor who should undertake to guarantee the loan repayment. Collateral is an asset against which loan is issued and in case of failure to repay the loan, the bank has the power to possess the asset and sell it off to meet the outstanding loan amount. However, Yes Bank, under its Gold Loan Scheme goes easy on the customer and does not demand any collateral for issuing the loan and the loan is given hassle-free.
An individual applying for the loan should meet the following eligibility criteria as laid down by the bank.
- The loan is issued to individuals who are Resident Indians
- The age of the individual should be between 18 years to a maximum of 65 years
- The purity of the gold against which loan is available is 18 Karat to 24 Karat