Gold Loan

Quantum of Finance / Loan-to-Value Ratio (LTV):

Consumption Loans:

Quantum of finance is fixed up to a maximum of 85% based on the client level exposure under consumption loan category as per regulatory guideline The appraiser shall assess the purity (caratage) and the net weight of the gold ornaments. The value of the ornaments is determined based on the applicable lending gold rate, along with the assessed purity and net weight of the gold ornaments.

Gold ornaments and jewellery accepted as security/collateral will be valued based on the average of the closing prices of IBJA 22 carat gold for the preceding 30 days or IBJA spot rate, whichever is lower.

As per RBI regulation, Loan-to-Value (LTV) ratio should be maintained throughout the tenor of the loan for all maturities. Loan outstanding has to be reduced by the borrowers, in case of LTV breach, so as to maintain the LTV within the prescribed norms throughout the tenor of the loan.

Income Generating Loans:

The amount of finance will be determined based on the eligibility assessed for the specific income-generating activity undertaken. Collateral rates are determined based on the appraiser’s assessment of the purity (caratage) and the net weight of the gold ornaments. The value of the ornaments is then calculated using the applicable lending gold rate, along with the assessed purity and net weight of the gold ornaments