Parameters | Existing Policy w.e.f 11.11.2024 | Revised Policy w.e.f. 13.05.2025 till further order |
Eligibility | A well introduced nominal member or an existing ordinary member. | No Change
|
Purpose | Agricultural, non-agricultural, personal or any other purpose as approved in the by-laws except speculative ones. Borrower have to produce copy of document regarding land (ROR) for agricultural purpose. OD against gold can be issued for business and personal purpose only 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 400000/- (Rupees Four Lakh) per individual as Gold Loan in Bullet repayment method and total gold loan to any individual combining OD against Gold and Gold loan against Bullet repayment method against nominal membership shall not exceed Rs 500000/- only. | No Change |
Linking of share | a)Upto Rs 5,00,000/- (Rupees Five Lakh) only against nominal membership or against ordinary/regular membership to an individual irrespective of borrower’s share- holding.
b) Above Rs.5,00,000/- (Five Lakh) – Only an ordinary member holding share at least @ 2.5% of the loan amount subject to multiple of Rs. 20/- Any modification of Share linking towards gold loan may be considered subject to prior approval of the Authority of the Bank. | No Change |
Basis of Valuation &
Mode of Calculation of Loan | Rs 74533/- (Rupees Seventy-Four Thousand Five Hundred Thirty-Three) for Hallmark Gold and Rs 74112/- (Rupees Seventy-Four Thousand One Hundred Twelve) only for Non-Hallmark gold per 10 gram of net weight of Gold Contents.
Rs 55000/- (Rupees Fifty-Five Thousand) only per 10 Gram of net weight of Gold contents for Hallmark Gold Ornaments.
Rs 53000/- (Rupees Fifty-Three Thousand) only per 10Gram of net weight of gold contents for other than Non-Hallmark gold ornaments. | Rs 88834/- (Rupees Eighty-eight Thousand Eight Hundred Thirty-Four) for Hallmark Gold and Rs 86979/- (Rupees Eighty-Six Thousand Nine Hundred Seventy-Nine) only for Non-Hallmark gold per 10 gram of net weight of Gold Contents.
Rs 64000/- (Rupees Sixty-Four Thousand) only per 10 Gram of net weight of Gold contents for Hallmark Gold Ornaments under Bullet repayment and that Rs 66000/- (Rupees Sixty-Six Thousand) only per 10 gram of net wight of Gold contents for Hallmark Gold ornaments for OD against Gold category.
Rs 62000/- (Rupees Sixty-Two Thousand) only per 10Gram of net weight of gold contents for other than Non-Hallmark gold ornaments under Bullet Repayment method and Rs 64000/- (Rupees Sixty-Four Thousand) only per 10 Gram of net weight of gold contents for other than Non-Hallmark gold ornaments for OD against Gold loan. |
Renewal of Gold Loan | Fresh weight of Gold Ornaments is to be obtained compulsorily at the time of third time renewal, if any, of the Gold Loan. | Fresh weight of Gold Ornaments is to be obtained compulsorily at the time of each renewal, if any, of the Gold Loan.
|
Rate of Interest | a) 9.20% to be compounded at monthly rests and as may be revised hereafter for Gold loans under Bullet Repayment method.
b) 9.50% to be compounded at monthly rests as may be revised hereafter for Overdraft Loans against Pledged Gold ornaments. | a) 9.10% pa for agricultural purpose (Land document required). b) 9.30% pa for non-agricultural, personal and/or business purpose. c) 9.40% pa for Overdraft loan against pledged gold ornaments for business/personal purpose.
All ROI are to be compounded at monthly rests and as may be revised hereafter.
|
Slabs for rate of Interest and mode of Charging of interest. | 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 instalment or by a lump-sum amount 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 articles have been received back in full and perfect condition. In case of Overdraft Loan against Gold, the account will be treated as NPA like other overdraft loans as per IRAC norms of RBI. So, recovery should be done accordingly. |
No Change.
|
Recovery | By public auction sale if not repaid within due time. At least one Reminder Notice shall be issued to the registered address of the borrower by registered post. Given above ** in details. | No Change |
On review of Order No. 2 dated 03.05.2025 under reference Memo No. 73/2025-26, it is hereby ordered that the figure Rs.88,834/- (for Hallmark Gold) shall be read as Rs.88,800.00 (Rupees Eighty Eight Thousand Eight Hundred) only and the figure Rs.86,979/- (for Non-Hallmark Gold) shall be read as Rs.86,900/- (Rupees Eighty Six Thousand Nine Hundred) only for the purpose of easeful calculation of quantum of Gold Loan permissible under both Overdraft and Bullet Repayment schemes. Moreover, all concerned are hereby informed that a separate GL Code 11139 has been created exclusively for Gold Loan (Agricultural Purpose) under Bullet Repayment scheme and henceforth all disbursements of Gold Loan for agricultural purposes shall invariably have to be made under this newly launched GL Code. In this regard, branches are asked to prepare separate Gold Loan Receipt Books exclusively for the said product as early as possible and the purpose of loan should remain reflected in pages. The Order is issued for the best interest of the Bank and shall be effective on and from 15-05-2025 and shall remain effective till further order.
