Gold Loan
Unlock instant funds with secure, affordable, and trusted gold loans.
Methodology for Gold Assaying and Valuation Purity-Based Weight Adjustment
Market-published gold rates for 22, 18, and 14 carat gold are used for valuation. For gold articles of other purities, the net weight is adjusted to the nearest higher purity for which a market rate is available.
Price Used for Gold Valuation
For each purity, the lower of the following two figures is considered:
- Average of the preceding 30 days’ closing prices, published by the India Bullion and Jewellers Association (IBJA)
- Closing price of the immediately preceding day, published by IBJA
Working Hours: Monday – Saturday (10 a.m to 7 p.m) / Sunday – Holiday
Purity Adjustment Table
| Gold Purity / Carat | Applicable Gold Rate | Weight Adjustment |
|---|---|---|
| 91.6% (22 ct) and above | 22 ct market rate | No adjustment |
| 87% (21 ct) | Adjusted to 22 ct | 4.5% reduction |
| 83% (20 ct) | Adjusted to 22 ct | 9.1% reduction |
| 79% (19 ct) | Adjusted to 22 ct | 13.6% reduction |
| 75% (18 ct) | 18 ct market rate | No adjustment |
| 70% (17 ct) | Adjusted to 18 ct | 5.6% reduction |
| 66% (16 ct) | Adjusted to 18 ct | 11.2% reduction |
| 62% (15 ct) | Adjusted to 18 ct | 16.7% reduction |
| 58% (14 ct) | 14 ct market rate | No adjustment |
Stone Weight Deduction Guidelines Applicable for all States
| Stone Weight (of Gross Weight) | Deduction |
|---|---|
| Less than 5% | No additional deduction |
| 5% – 10% | Normal purity deduction + 1% |
| 10% – 25% | Normal purity deduction + 2% |
| More than 25% – 40% | Normal purity deduction + 5% |
This methodology is uniformly applied across all branches.
Gold Loan Charges
Auction Charges are mentioned below
| Particulars | Charges (Inc. Tax) |
|---|---|
| Printing & Stationery | Rs. 6/- |
| Advertisement Charges | Rs. 170/- |
| Transportation | Rs. 50/- |
| Insurance | Rs. 30/- |
| Charges Paid to Auctioneer | Rs. 45/- |
| Postage | Rs. 80/- |
| Expenses Incurred for Sorting, Lifting and Other Auction-related Work | Rs. 160/- |
| Total Auction Charges (Inclusive Tax) | Rs. 541/- |
Gold Loan Charges:
| S. No. | Particular | Charges / Fees |
|---|---|---|
| 1 | Processing Fee (During Settlement) | Rs. 25/- + Tax |
| 2 | Form K Charge/Fee (Delivery against Lost Pawn Ticket) |
Rs. 75/- (including Tax) – First Instance Rs. 100/- (including Tax) – Subsequent Instances |
| 3 | Charge/Fee for Delivery of Statement of Account to Customers |
Free of cost, if demanded within 30 days of closure of account. After 30 days: Rs. 25/- + Tax |
| 4 | Postage - Ordinary Letter | Rs. 5/- (including Tax) |
| 5 | Postage - Registered Letter | Rs. 30/- (including Tax) |
| 6 | Cheque Sending Charge to Auction Surplus Customers | Rs. 50/- (including Tax) |
| 7 | Penal Charge/Fee After Due Date | 2% p.a. on total outstanding as on due date |
| 8 | CERSAI Registry |
Rs. 50/- + Taxes (Loan up to Rs. 5 Lakhs) Rs. 100/- + Taxes (Loan above Rs. 5 Lakhs) |
Safe custody Charges on monthly basis for the period of under-utilization of credit limit exceeding 90 days
Gold Loan Charges:
| Gold Weight | Monthly Safe Custody Charge / Fee |
|---|---|
| Below 20 Gm | Rs. 8/- |
| 20 to < 50 Gm | Rs. 40/- |
| 50 to < 100 Gm | Rs. 93/- |
| 100 Gm and above | Rs. 277/- |
Best Gold Loan Schemes and Rates
| Scheme Code | Min Loan Limit | Max Loan Limit | Interest Range by Tenure | |||
|---|---|---|---|---|---|---|
| 90 Days | 180 Days | 270 Days | 365 Days | |||
| SSMH | Min 10,000 | 99,999 | 18% - 24% | 17% - 24% | 16.75% - 24% | 16.50% - 24% |
| SSMH1 | Min 1,00,000 | 2,50,000 | 17% - 24% | 16% - 24% | 15.75% - 24% | 15.50% - 24% |
| SSMH2 | Min 2,50,001 | 5,00,000 | 15% - 24% | 14% - 24% | 13.75% - 24% | 13.50% - 24% |
| SSMH3 | Min 5,00,001 | 10,00,000 | 13.99% - 24% | 12.99% - 24% | 12.74% - 24% | 12.49% - 24% |
| SSMH4 | Min 10,00,001 | 24,99,999 | 10.95% - 24% | 10.70% - 24% | 10.45% - 24% | 10.20% - 24% |
| SSMH5 | Min 25,00,000 | 49,99,999 | 10.90% - 24% | 10.40% - 24% | 10.15% - 24% | 9.90% - 24% |
| SSMH6 | Min 50,00,000 | 1,50,00,000 | 10.90% - 24% | 9.90% - 24% | 9.90% - 24% | 9.90% - 24% |
| SSMHA+1 | 1,95,000 | 10,00,000 | 12.50% - 24% | 11.50% - 24% | 11.50% - 24% | 11.50% - 24% |
| SSMHT+1 | Min 2,00,000 | No Limit | 13% - 24% | 12% - 24% | 12% - 24% | 12% - 24% |
| SSMHT+2 | Min 1,00,000 | No Limit | 14.50% - 24% | 13.50% - 24% | 13.50% - 24% | 13.50% - 24% |
| SSMHT+3 | Min 75,000 | No Limit | 16% - 24% | 15% - 24% | 15% - 24% | 15% - 24% |
| SSMHDS | Min 1,000 | Max 99,999 | 13% - 24% | 12% - 24% | 12% - 24% | 12% - 24% |
| SSMHC | 1,00,000 | 5,00,000 | 20.61% - 24% | 20.61% - 24% | 20.61% - 24% | 20.61% - 24% |
Notes
- The SSMHT+1, SSMHT+2, SSMHT+3, are takeover schemes which are takeover from Nationalized Bank, Private Bank & NBFC and Local Finance respectively.
- Individual Exposure Limit- Maximum loan value of Rs.25 Lakh is sanctioned by Branch Head and above this limit is approved by higher authorities.
- Processing fee for gold loan shall be charged at Rs.25/- (Tax Extra).
- Compounding in all Schemes at monthly rest
Approach for Gradation of Risk
The Lending Rate will be different for different categories of borrowers, considering profile of the customer, tenure of customer relationship, past repayment track record, customer segment, market reputation, inherent credit and default risk in the products, subventions and subsidies available, ancillary business opportunities, future potential, group strength and value to lender group, overall customer yield, Loan-to Value (LTV) ratio, nature and value of primary and collateral security etc. The Lending Rate is determined on a case to case basis.
