Accessibility Tools
Contrast
Text
Tools
Powered by Cleuz
Gold Loan

Benefits of a Gold Loan

Gold Loans offer numerous benefits, making them a popular choice for quick financial assistance. Key benefits include:

Quick Disbursal

Gold Loans are processed and disbursed rapidly, often within a few hours, providing immediate access to funds.

Minimal Documentation

The documentation required is minimal, typically involving only identity and address proof, making the process hassle-free.

High Loan Amount

Borrowers can secure a substantial loan amount based on the value of their gold, making it ideal for significant financial needs.

Lower Interest Rates

Gold Loans generally come with lower interest rates compared to unsecured loans, reducing the overall cost of borrowing.

Flexible Repayment Options

Borrowers can choose from various repayment plans, including bullet repayment and EMIs, allowing for convenient and tailored financial planning.

Security of Gold

The pledged gold is stored securely by the bank, ensuring its safety until the loan is repaid.

Gold Loan

Methodology for Determination of Net Weight and Valuation of Gold/Silver Collateral

In accordance with the Reserve Bank of India (RBI) guidelines, Sundarlal Sawji Urban Co-operative Bank Ltd., Jintur has adopted the following methodology for determination of the net weight and valuation of gold and silver collateral accepted for sanction of loans:

1. Determination of Net Weight

  • The pledged ornaments are weighed on calibrated electronic weighing scales.
  • Gross weight of the ornament is first determined.
  • Weight attributable to stones, pearls, beads, lac, wax, enamel, threads and other non-gold/non-silver components is excluded.
  • The balance weight is treated as the net weight of the eligible gold/silver collateral.
  • Where exact segregation is not possible, standard deductions approved by the Bank are applied uniformly across all branches.

2. Determination of Purity

The purity of the pledged ornaments is assessed by trained staff/approved assayers through one or more of the following methods:

  • Verification of BIS hallmark, wherever available.
  • Touchstone testing.
  • Karat meter testing.
  • Visual inspection and other approved non-destructive methods.

3. Valuation of Gold/Silver Content

  • Valuation is based only on the net weight of the eligible gold/silver content.
  • No value is assigned to diamonds, precious stones or any other embedded material.
  • The price adopted for valuation is the rate approved by the Bank from time to time, in accordance with applicable RBI guidelines.
  • The same valuation methodology is uniformly followed across all branches of the Bank.

4. Determination of Loan-to-Value (LTV) Ratio

LTV Ratio (%) = Outstanding Loan Amount ÷ Value of Eligible Gold/Silver Collateral × 100

The Bank ensures that the LTV ratio remains within the limits prescribed by the Reserve Bank of India from time to time.

5. Disclosure

This methodology is applicable uniformly across all branches of the Bank and may be revised from time to time in accordance with RBI directions and the Bank's internal policies.

Sundarlal Sawji Urban Co-operative Bank Ltd., Jintur