Gold Loan

 gold loan

 

Gold Loan is defined as a form of debt financing whereby a potential gold producer borrows gold from a lending institution, sells the gold on the open market, uses the cash for mine development, then pays back the gold from actual mine production. Gold loans had less appeal in the 1990s as mining companies were offered other increasingly sophisticated financial instruments, such as forwards and options, by the bullion banks.

 

Gold loan Schemes

 

Name RGL – A
Time Period 3 Month 6 Month 9 Month 12 Month
Interest rate 12% 18% 22% 27%

 

Name RGL – B
Time Period 1 Month 2 Month 3 Month 6 Month 9 Month 12 Month
Interest rate 14% 16% 18% 21% 25% 30%

 

Name RGL – C
Time Period 3 Month 6 Month 9 Month 12 Month
Interest rate 18% 21% 24% 27%

 

Name RGL – D
Time Period 3 Month 6 Month 9 Month 12 Month
Interest rate 20% 24% 28% 30%

EMI Schemes

Name RGL – 1 RGL – 2 RGL – 3
Time Period 12 Month 24 Month 36 Month
Interest rate 12% 14% 16%
Loan Type EMI (Flat rate scheme)

 

Conditions

 

  • The quality of Gold should be 22 ct

 

  • In case of stone mixed ornaments, the stone value should be reduced from total value.

  • The Company will make only a preliminary verification of the Gold and the Company has the right to further check the purity / weight of the Gold internally or by experts at any point of time if required, at the Company’s sole discretion, at the cost and expense of the Loan Applicant/Borrower.

  • On every loan minimum 7 days interest to be paid.

  • The interest/EMI to be paid monthly under all schemes.

  • The processing fee for normal schemes (RGL-A, RGL-B, RGL-C, RGL-D) are @Rs.50/- up to one lakh, then @Rs.100 per lakh will be charged.

  • The processing fee for EMI schemes (RGL-1, RGL-2, RGL-3) are @1% of the loan amount.

  • Interest along with Part payment of the principal can be made.

  • On default in payment in normal schemes (RGL-A, RGL-B, RGL-C, RGL-D), the interest slab will shift to next slab automatically, and the borrower will have to pay the interest as per said slab.

  • On default in payment in EMI schemes (RGL-1, RGL-2, RGL-3), The penal interest of @2% per month will be charged on defaulted EMI, for defaulted days.

  • Default of above 12 months, penal interest @ 4% will be charged for every additional month.

  • Not withstanding anything mentioned herein, the Loan Applicant/Borrower shall repay the entire dues/outstanding under the Loan including principal, interest (“Dues”), and other charges, immediately on demand, if the Company observes, after verification internally or by experts, that the whole or part of the Gold is not of the prescribed weight / purity or if the title of the Loan Applicant/Borrower to the Gold is found defective or if the same is disputed by any other person.

  • In the case of 6 months default, in EMI schemes, the company can ask the Loan Applicant/Borrower to repay the entire dues/outstanding under the Loan including principal, interest (“Dues”), and other charges, immediately. If the Loan Applicant/Borrower fails to make the repayment, The company will be free to proceed for auction of the gold after this period.

  • In the event the Loan Applicant/Borrower fails to produce the receipt/pawn ticket at the time of settlement, the Company at its sole discretion may ask for completion of verification formalities to prove the right of the borrower over the gold, and the borrower is bound to cooperate with completion of the process and procedures. Gold will be released only after full verification in this respect. Charges and cost, if any, on this count, will have to be borne by the borrower.

  • The Company shall have the right to make disclosure to Credit Information companies or such other similar agencies, as required under statutory regulations.

  • Gold coins/ biscuits/bullions will not be accepted.

  • In case of death of the borrower, the nominee of the borrower can withdraw the gold. For this purpose, the borrower will have to nominate a person while applying for loan. The nominee will have to bring his id proof along with pawn ticket/receipt to claim the gold.

  • At the end of the tenure of the scheme, the borrower has to close the loan account by payment of all dues along with the principal within a reasonable time of one week. The company will be free to proceed for auction of the gold after this period.