Whereas it is observed that the price of gold in the market is steadily increasing day by day: And whereas there is a constant demand of the consumer for enhancement of scale of finance for loan against gold ornaments.
And whereas the matter was reviewed thread bare in the meeting of the Board of Directors held on 26.11.2011 and it is resolved to revise the scale of finance against pledge of gold ornaments.
Now, therefore, pursuant to the aforesaid decision of Board of Directors and in modification of this office
order No. 22/2010-2011 dt. 25.11.2011 it is hereby ordered that with effect from 1st December 2011 loan against security of gold ornaments shall be made according to the following policy.
Parameters |
Existing Policy
Form 01-12-2010 to 30-11-2011 |
Revised Policy form
01-12-2011 |
Eligibility |
A well introduced nominal member or an existing ordinary member. |
No Change |
Purpose |
Agricultural, non agricultural or any other propose as approved in the by laws except speculative ones. |
No Change |
Title of ornaments to be pledged |
Advance can be made only to a true owner after obtaining a declaration to the effect that ornaments are his/ her own property.
No advance shall be made to a money lender against re-pledge of ornaments held as security against loan made by him. |
No Change. |
Sanctioning Authority |
Branch Manager or in his absence the authorized officer in charge of branch is authorized to sanction the loan as per order no. 10/87-88 dated 28-08-1987 as revised upto date and as may be revised hereafter subject to ratification by Board in the next meeting. |
No Change. |
Ceiling of Loan
|
Rs.300000/- (Three lacks) per individual but 500000/- (Five Lacks) per family. |
No Change |
Linking of share |
- Up to Rs.50,000/- (fifty thousand) – a nominal member or an ordinary member irrespective of value of his /her share holding
- Above Rs.50,000/- (Fifty thousand) - Only an ordinary member holding share at least @ 2.5% of the loan amount subject to multiple of Rs. 20/-
|
No Change |
Basis of Valuation &
Mode of Calculation of Loan |
Rs. 12860/-(Twelve Thousand Eight Hundred Sixty)per 10 grams of net weight of gold contents
Rs. 9000/- (Nine Thousand) per 10 grams of net weight of gold contents. |
Rs. 21450/-(Twenty One Thousand Four Hundred Fifty)per 10 grams of net weight of gold contents
Rs. 15000/- (Fifteen Thousand) per 10 grams of net weight of gold contents |
Margin to be retained |
30.03% |
30.07 % (approx) |
Slabs for rate of Interest and mode of Charging of interest. |
Upto Rs. 50000 and above Rs. 50000 as per order no. 21/2009-10 dated 23-12-2009 to be compounded at monthly rests and as may be revised hereafter. |
No Change |
Repayment period |
Within twelve months from the date of loan either by unusual installment or by a lump-sum upto loan limit of Rs.1,00,000/- only according to the convenience of the borrower. No part delivery of Pledged Ornament shall be allowed against part payment. On full payment of Loan & Accrued Interest, delivery of the Ornaments to the borrower against surrender of the receipt which will be made obtaining an acknowledgement by the borrower that the article have been received back in full and perfect condition. |
No Change |
Recovery |
By public auction sale if not repaid within 26 (twenty six) months even after issuance one reminder notice after twelve months from the date of loan by ordinary post and another (but last) to the registered address of the borrower by registered post. |
No Change |
