BoM launches gold loan scheme

‘Maha Jewel’ scheme will be available initially in 176 branches of the bank across the country, said a press release from BoM.

Applicants who fulfill KYC norms in the 18-70 age group are eligible. The purpose of the loan is to cater to the requirements of business,agriculture and meeting other personal expenses.

The bank has also declared that the quantum of loan varies from minimum of Rs 25,000 to a maximum of Rs 5 lakh. The eligible loan amount is Rs 1,200 per gram of 22 carat or 65 per cent of the market value of the net weight of the Gold ornaments which ever is less,and subject to the minimum and maximum ceilings. The gold ornaments to be pledged shall be tested and certified by an appraiser empanelled by the Bank. The gold appraisal charges shall be borne by the borrower.

The rate of interest for gold loans is as low as 7 per cent p. a (for agricultural purposes) and for purposes other than Agriculture it varies from 10.75 per cent (Senior citizen) to 11.25 per cent (others) while the maximum repayment period is three years.

For the top up loan,the existing home loan borrowers not beyond age of 60 years,after paying minimum 24 monthly installments can apply for top up loan from the bank.

In order to be eligible,the borrower should have annual gross income higher than Rs 3 lakh and the borrower should not have defaulted in payment of any installments at any stage.