As Jewel Loansarefully secured, easy to market with minimal procedure, they are a popular loan product. Jewel Loans are alsohassle free from the customers as well as from Bankers point of view.

Now, due to COVID-19 crisis, Gold loans are gaining attraction, becoming more popular with banks. The yellow metal has traditionally been regarded as a safer mode of investment and borrowing as compared to other options. Now, from the feedback received from the branches, and looking to the rate of interest charged by other banks, to improve the Jewel Loan portfolio of the Bank and to achieve the set bank target, bank has introduced a new product, named Vikas Laghu Suvarna with decreased rate of interest.

Sl. No Details Guidelines
1. Name of the Product Vikas Laghu Suvarna
2. Product Type

Term Loan

3. Purpose

For Personal /General Business Purpose and Non-Crop agriculture purpose

4. Eligibility


5. Maximum Loan amount

Need Based loan subject to Maximum of Rs.15.00 lakhs per party

6. Per Gram Lending

80% of the Market value (LTV)/Appraised value of the Gold Pledged subject to a Maximum of Rs.3200 Per Gram (Subject to change as and when revised by Head Office)

7. Rate of Interest

Till the Completion of 6 Months- 7.25% per annum Overdue accounts shall be charged at 10.50% per annum

8. Security

Pledge on Gold Ornaments of 22 Carat Purity

9. Repayment

Repayable in lump sum along with accrued interest within 6 Months from the date of sanction

10. Processing Charges

0.25% of loan amount

11. Other terms and conditions

If the account remains unpaid for more than 90 days from the due date, the account will be classified as NPA.

Lending Procedure is as applicable to the General Gold Loan.

Foreclosure of the existing gold loans for availing under the present scheme shall not be entertained. (i.e. Existing Jewel Loans shall not be allowed to get renewed under this product).