CENTRAL OFFICE, CHANDER MUKHI NARIMAN POINT, MUMBAI-400021

CENT GOLD LOAN SCHEME (Priority Sector) Nature of Facility Eligibility Demand Loan facility against Gold Ornaments (D/L Agri) All types of agriculturists, who are carrying out production oriented activities, irrespective of size of holding, agricultural labourer, rural artisans etc, are eligible to avail loan under the scheme. Borrower should be a local resident and his identity should be properly established before sanctioning the loan. To meet agricultural expenses for crop production, purchase of milch animals, sheep, poultry and other allied activities, including recurring expenses incurred on minor irrigation, land development, farm mechanization etc. and also to meet consumption needs of family. Rs. 2000/- per gram of gold or 80% of bullion Market rate of 22 carat gold per gram whichever is less. Maximum limit per borrower Rs 5 lakhs. The gold ornament can be either hall marked or otherwise. The branches should monitor the market price of gold and sanction the loan by keeping atleast 20% margin subject to Rs. 2000/- per gram (Maximum) Pledge of ornaments with the bank. Upto Rs 25000/Nil Above Rs 25000 upto Rs 500.00 Rs 2.00 lacs Above Rs 2.00 lacs upto Rs 250 per lac or part Rs 5.00 lacs thereof Same as applicable to Agricultural advances subject to change in the interest by Central office from time to time. The present rate is as follows. Existing rate is as follows: a. Agriculture 1. All gold loans upto Rs 3.00 lac extended for Agricultural purpose will continue to attract rate of interest at 7.00% p.a with interest subvention as hitherto. 2. For other cases Limit Upto Rs 50000 Above Rs 50000 upto Rs 2.00 lacs

Purpose

Quantum of Finance

Margin

Security Processing charges

Rate of Interest

Rate of interest% Base rate +0.50 Base rate +1.00

Above Rs 2.00 lacs upto Rs 5.00 lacs b. Other priority sector

Base rate +2.00

Repayment

Based on activity as per extant interest rate guidelines One year with roll over facility for further period of one year.

Documents

Demand Pro-note A suitable letter of authority for payment of cash or for credit of the amount to the savings/current account as the case may be obtained from the applicant. Agreement ( letters of declaration cum pledge as per schedule of documents appended) Appraisers certificate. Appointment of The Branch Manager should obtain the application of a reputed Gold Appraiser jewel appraiser of the area with 2 testimonials and forward the same to Zonal Office, with his recommendations. The appraiser has to execute an Indemnity bond in favour of the bank and give minimum deposit of Rs. 5000/- to the bank. The fees of the Jewel Appraiser must be kept to the minimum and his fees must be recovered from the borrower only. Terms and condition for engaging Appraiser is enclosed as Annexure V Appraisers Charges Upto Rs. 50000/Rs. 3.50 per thousand with minimum Rs. 25.00 max. Rs 150.00 From Rs. 50001 to Rs Rs. 3.50 per thousand with minimum Rs. 1.50 lacs 25.00 max. Rs 250.00 From Rs. 150001 to Rs. 3.50 per thousand with minimum Rs. Rs 3.00 lacs 25.00 max. Rs 350.00 From Rs. 300001 to Rs. 3.50 per thousand with minimum Rs. Rs 5.00 lacs 25.00 max. Rs 500.00 Other terms and Gold loan can be allowed on declaration by the borrower having condition land as is used for production or allied activities or for other priority sector activities. Declaration from the borrower that the ornaments belong to him/her and has a right to pledge them and that no once else has a claim or interest therein. Gold will be tested /appraised about the purity by Jewel Appraiser in presence of the borrower, Bank official.

Flow Chart of Gold loan financing

Appraisal of Gold/Jewels

Customer Approaching Branch Office with jewels for gold loan

Branch Manager Verifying the ownership of jewels

Jewel Appraiser Verifying the purity of gold Note the particulars item viz. Gross Weight, Net Weight, Purity, Rate per gram and estimated value of gold/jewels