Cent MSME Gold Loan Scheme

Name of the Scheme	Cent Gold Loan Scheme
Eligibility / Target Group	Proprietorship firms having KYC complied accounts with our Bank. Gold/Jewellery shop owners, Goldsmiths/appraisers and their close relatives are not eligible.
Purpose	To meet non-speculative business-related needs, Production credit/working capital needs etc.
Type of Facility	Demand Loan (Bullet Repayment)
Security	Pledge of gold Jewellery, gold ornaments (Max weight 1000 gram) of 18/20/22 Karat purity or Gold Coins (Max. 50 grams per person). Gold Jewellery/Ornaments of 18/20 Karat will be proportionately valued at the Rate of 22 karat.
Quantum of Loan	Min. Rs. 10,000/- Max. Rs. 60 Lakh. Overall limit under RAM segment capped at Rs. 60 Lakh.
Loan Eligibility Norms	Gold Loan Exposure > Rs. 2.50 Lakh will be assessed based on repayment capacity of the customer.
Margin	30%
Loan to Value	70%
Repayment	12 Months
CIC Score	No Minimum CIC score requirement. For borrower with Annual Income above Rs. 10 Lakh, CIC will be extracted for considering deductions.
Rate of Interest	RBLR (8.50%) + 0.25 = 8.75% presently.
Processing Fee	Up to Rs. 5 Lakh: NIL. Above Rs. 5 Lakh: 0.30% of Loan Amount + GST, maximum Rs. 5,000/-. Valid up to 31st March 2027.
Prepayment / Foreclosure Charges	NIL
Appraisal Fee	Loan amount slab-wise appraisal fee to be collected from borrowers: Appraiser not registered under GST: 1. First-time appraisal: 0.20% of loan amount, minimum Rs. 100/- + GST, maximum Rs. 3,000/- + GST. 2. Renewals: 0.10% of loan amount, minimum Rs. 50/- + GST, maximum Rs. 1,500/- + GST. Appraiser registered under GST / Corporate Appraiser: 1. First-time appraisal: 0.22% of loan amount, minimum Rs. 110/- + GST, maximum Rs. 3,300/- + GST. 2. Renewals: 0.11% of loan amount, minimum Rs. 55/- + GST, maximum Rs. 1,650/- + GST.
Release of Pledged Collateral	Release or return the pledged eligible collateral held as security to the borrower(s) / legal heir(s) within a maximum period of seven working days upon full repayment or settlement of the loan.
Safe Keeping Charges	Loan amount slab-wise safe keeping charges will be levied after 30 days of expiry of tenure of the Gold Loan or after 30 days of closure of the loan, if gold/ornaments are not redeemed.
Calculation of Gold Rates for Financing Gold Loans	The lower of the following will be considered: 1. Average closing price of 18/20/22 karat gold (24 karat gold in case of gold coins sold by Banks) for the preceding 30 days, as quoted by India Bullion and Jewellers Association Ltd., less the applicable margin mentioned above; or the previous day's closing price quoted by India Bullion and Jewellers Association Ltd. 2. Applicable percentage as mentioned in the LTV column of the current market price of 18/20/22 karat gold (24 karat gold in case of gold coins sold by Banks), depending on the tenure of the loan, whichever is lower. Gold Rate administering functionality along with LTV monitoring is implemented in the system.
Gold Purity Testing Methods	Touch Stone Method Nitric Acid Test Method Specific Gravity Test Method Assaying Machines / Gold Purity Testing Machines / Karat Meters (wherever machine is provided)
Assessment of Net Weight	Weight towards stones, wax, thread, fastening, etc., as well as precious/semi-precious stones like diamonds, must be deducted from gross weight to arrive at the weight of gold. As gold jewellery/ornaments cannot be made of pure gold (24 karat), these ornaments of 18/20/22 karat fineness contain other metals like copper/silver, etc. Depending on the quality of the ornament, 5% to 10% (or even more, as assessed by the gold appraiser) of the arrived weight is to be deducted, and net weight calculated. Gold loan is to be sanctioned at the rate applicable to 22 karat on the net weight. Conversion of low-purity gold, i.e., 18 karat/20 karat into 22 karat, is to be done manually until the gold rates for 20 karat and 18 karat are made live in the system.