Loan against Gold Ornaments

Instant Gold Loan

• Draw instant Cash by pledging your Gold Ornaments and Jewellery.
• Higher loan amounts, depending on purity, net weight of the gold.
• Choose from a range of schemes; there is one just right for your needs.

FAQ

What is Gold Loan?

Gold loans are secured loans where the customer pledges the gold ornaments they hold as a collateral deposit against the money they are going to receive. Gold loans are usually taken for short term financial obligations.

Why Gold loans are preferred over personal Loans?

Gold loans are secured loans whereas personal loans are unsecured. The gold loan requires a collateral deposit, where the gold itself is pledged against the money the customer receives, while in personal loans collateral deposits are not required. Gold loans allow greater disbursal amount; through the gold loan, you can draw up to 5 crores while personal loan allows disbursal up to just 40 lakhs. The lower interest rate of the gold loan is another feature that has convinced people to avail gold loan facilities widely for their financial requirements.

How to apply for a Gold Loan?

Procedures included in the application for a gold loan are very simple. You have to first approach a lender, the lender will value your gold and calculate the maximum amount you can borrow. You will be required to fill a loan application for this and submit necessary documents such as copies of ID proofs and valid address proof. Once the value is calculated the money is instantly disbursed and you can use it for your intended purpose immediately.

Who can apply for a Gold Loan?

Anybody over the age of 18 can apply for a gold loan provided he or she is the actual owner of the ornaments they present. The banks are not required to consider factors such as income, age, credit score, banking history, etc.

Highlights of Gold Loan

• Minimum Requirements: A certified copy of Aadhaar number, Voters ID & Bank Passbook Copy, one recent photograph, The Permanent Account Number or Form No. 60 as defined in Income-tax Rules,1962.
• Pay interest only for the exact period of loan, and to the exact number of days.
• Different schemes for different needs, to suit all income groups.

Contacts for Gold Loan Enquires:

SL NO.	HEAD SALES NAME	CONTACT NO
1	TONY HAZRA	6382611048

Regions

SL NO.	REGION NAME	REGIONAL MANAGER	CONTACT NO.
1	GL-ANDHRA PRADESH	PUJARI NARASIMHAIAH	6374462906
2	GL-ASSAM	BANAMALI DEKA	6374464047
3	GL-BIHAR	PENTAM DURGESH	9949032844
4	GL-HARYANA	DEEPESH KUMAR YADHAV	6374464163
5	GL-MADHYA PRADESH	MANOJ KUMAR SWARNAKAR	8512919217
6	GL-ODISHA	MANOJ KUMAR JENA	9361181129
7	GL-PUNJAB	ANIL KUMAR TIWARI	9888173112
8	GL-RAJASTHAN NORTH	OM SINGH YADAV	7014809291
9	GL-RAJASTHAN SOUTH	DHIRAJ KUMAR	7994456994
10	GL-TELANGANA	M SRINAVAS RAO	9618850276
11	GL-UTTAR PRADESH NORTH	SANKAR KARMAKAR	7908488631
12	GL-UTTAR PRADESH SOUTH	BIDYUT SHIL	6374467296
13	GL-WEST BANGAL	BEERENDRA KUMAR UPADHYA	9131166724
14	GL-KARNATAKA	MAHANTISH KALI	8925808336
15	GL-MAHARASTRA	KISHORE ASHOKRAO KADAM	6374464800

Gold Loans Operational Schemes:

Please avail special rebate immediately on regular payment of interest on the loan on certain schemes only. Refer table shown below.

Rebate in Gold loan Scheme

a. For regular monthly interest paying customers, the initial interest rate will be continued during the loan tenure.
b. OGL registered customers will get attractive interest rate rebate by repledging via online mode in SX scheme based on the repledge frequency as follows:

• For regular monthly interest paying customers, the initial interest rate slab will be continued during the contracted loan tenure.

OGL Effective Interest Rate
Re-pledge (Transactions) Frequency Criteria	SX scheme
Pay full interest & Minimum 4 Repledges in every 15 days from the inventory created date	12%
Pay full interest & Minimum 3 Repledges in every 15 days from the inventory created date	4%
Pay full interest & Minimum 2 Repledges in every 15 days from the inventory created date	2%
Pay full interest & Minimum 2 Repledges in every 30 days from the inventory created date	1.5%
Pay fu22ll interest & Minimum 1 Repledge in every 30 days from the inventory created date	1%

• For counting number of repledges during every 15days, the difference between two pledges shall be minimum 1 day.
• Available only for SX scheme
• Repledge via only mode (Web/App) only will be considered for interest rate rebate eligibility.
• Repledge done on the inventory creation day will not be considered for interest rate rebate eligibility.
• All other conditions of OGL special rebate scheme remaining same.

Note

• Minimum 15 Days interest applicable for pledges in all schemes except SX scheme, due to OGL rebate applicable under online repledge.
• Overdue interest is chargeable at 3% p.a. after loan tenure.
• Compounding in all Schemes at monthly rest.
• Processing fee of Rs. 10/- for all schemes at the time of settlement. Additional processing fee on Repledge at 0.007% of new pledge value.
• Individual maximum exposure limit: 25 Lakhs. Requires separate approval for additional exposure.

Approach for Gradation of Risk

The process of gradation of risk and interest determination is primarily based on the details/attributes of the loan scheme, say, LTV, tenure of the loan and the amount of loan extended. As a result, higher the risk perceived for a loan, based on assessment of the said factors the interest rates are likely to be higher and vice versa. For example, for the loans with lesser tenure (e.g. SX scheme) the risk perceived is higher and thus maximum interest rate is applied.

For further details contact nearest branch. For a branch near you, log on our Website.

Gold loan FAQS:

How are Gold Loans different from other loans like Personal Loan or Credit Card?

Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant. It is true that Gold loans, like personal loans or credit card borrowings, are often used for short term household requirements. However, in terms of the cost and ease of availing the loan, and the convenience when repaying, gold loans are a better bargain. Personal loans and credit card borrowings are unsecured loans and therefore may carry a higher rate of interest. Moreover, personal loans require considerable effort in documentation formalities and they commit you to an inflexible EMI schedule for repayment. Gold loans, on the other hand, are cheaper and can be availed of in minutes. You can also stretch the repayment to your convenience; the only requirement is that you have to service the interest periodically. Credit card borrowings may be easier to avail than even gold loans but the interest rates are prohibitive and it can lure people into a debt-trap.

Who is eligible to avail Asirvad Gold loans? What security has to be provided?

Anyone who owns gold ornaments can avail the loan. (Note: minors are not eligible.) To obtain the loan you need to submit your gold jewellery (within a karat range of 18 to 24 k) at the branch. The loan amount that is sanctioned will be based on the gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.

What are the documents required for taking loan against gold ornaments? Are there any end-use restrictions involved?

We need one document of identity proof (such as Aadhar Card or Voter ID card,) and one document of residential proof. There are no end-use restrictions in gold loans.

What is the rate of interest charged on such loans? How is the interest calculated?

Our base rate of interest is 26 percent. However, depending upon how high the loan to value (LTV) is, additional interest (amounting to risk premium) ranging from 3-12 percent is charged over and above the base rate. The interest and risk premium is applicable only for the days the money was actually utilised. There are no prepayment penalties.

Monthly compounding interest is charged, which the borrower has to pay at the specified periodicity or at the closure of loan, whichever is earlier. The interest rate is fixed and calculated on a reducing balance basis.

What is the tenour of such loans?

Our gold loan products have a tenour of three months. Customers are counselled to service the interest on a monthly basis, to avoid risk of default.

How long will it take for me to get my gold loan?

Once you submit your application form and supporting documents, we shall give approval within a matter of minutes provided everything is in order. All loan approvals are at the sole discretion of the branch head.

Are the pledged gold ornaments safe and secure with Asirvad?

Gold ornaments accepted as pledge by the customers are stored at the branches in strong safe / strong room built to the standards and specifications applicable to commercial banks. The pledged gold ornaments are insured for full value. Moreover, electronic surveillance technology is deployed to protect the gold.

Do I require a Guarantor or Introducer for availing Gold loan? Do I need to open an account with a Bank?

No. Unlike other loans, there is no need for either a Guarantor or Introducer and there is no need for a bank account if the transaction is less than 1 lac. However, we recommend transactions through bank account, as it comply regulations.

How do I repay my Gold loan?

You repay the loan at the end of the loan tenure. You do not have to go through hassle of servicing EMIs every month. However, interest has to be serviced periodically, as per the terms of sanction. Repayments can be made in cash, by cheque or DD.

Moreover, at Asirvad, repayments towards interest and/or principal can be conveniently made at the counters of any of our other Asirvad Gold loan Branches of over 430 + branches, irrespective of where the loan was taken from. Enquiries about outstanding amount etc. can also be made at any of these branches. However, the pledged ornaments will be released/handed back only at the branch from where the loan was originally availed.

We have also enabled online payment of interest and repayment (full or partial) of principal. Instructions on how to make such online payments are given on ONLINE GOLD LOAN section of this website.

Is there any maximum and minimum limit for availing Gold Loan? What about the tenure of the loan, lock-in period, and prepayment penalties?

Asirvad Gold loans may be availed for any amount between Rs.1,000 to a maximum of Rs.1.5 crore. Loan requests more than 1.5 crore shall be considered with special approval of management. Loans are available for periods three months. Our gold loans do not have any minimum or lock- in-period and there are no prepayment penalties should you choose to repay earlier than scheduled.

Whether partial payments of loan and interest are accepted?

Customers are free to repay part amount of loan and/or accrued interest thereon at anytime in order to reduce the interest burden on the loans. Interest is calculated on daily product basis on the amount of loan outstanding at the end of the day.

How can customers settle the loan account and get back the gold ornaments?

The customer has to submit the pawn ticket (given to them at the time of taking loan) to the counter staff at the branch with a request to close the loan account. The staff will enquire into your account in the (computer) system and inform you of the outstanding loan amount (principal + interest accrued). By depositing the outstanding loan amount with up to date interest, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.

What happens if the loan amount is not repaid on the due date?

In case loan amount is not repaid on or before the due date, penal rate of interest is liable to be charged on the loan amount from the due date of loan.

Is there a possibility of damage to the ornaments at the time of appraising?

Appraising is done in the presence of the customer only. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.

What are the things that people should keep in mind while taking a gold loan?

The most important things from the customer’s perspective are transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. There should be no hidden costs and no nasty surprises. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any mala fide actions after the jewellery has been pledged. The choice of loan products should cover the range from high LTV (loan to value) to low LTV, with appropriate variations in interest rates. At Asirvad, you will find that all these aspects are well taken care of.

What makes Asirvad Gold loan different from other providers of gold loans?

In addition to the transparency, security, and range of its gold loan products (as mentioned above), Asirvad Finance distinguishes itself from others primarily on the basis of the ease with which gold loans can be availed from our branches. The only requirement is that borrowers present themselves at our branches with the gold jewellery and with a valid ID and address proof. Our streamlined systems and procedures ensure that a gold loan can be availed in a matter of minutes. Also, we offer the highest LTV to those interested in availing the maximum amount of loan against their jewellery. We can do this because with our long experience in the business, we have acquired the capability to handle the extra risk involved.

What are some of the gold loan schemes that Asirvad Gold Loan offers to suit its customers from different income groups?

Our gold loan schemes fall broadly into following categories:

• High loan to value: These schemes offer the maximum amount of loan per gram. At the same time, in keeping with the extra risk, the interest cost to the borrower is higher. Typically, such schemes will have a tenure of 3 months.
• Low interest rate: In this category, the interest rates are lower but the Loan to Value (LTV) is also comparatively less.

Our products are tailored not to the income group of the customer, but to relevant considerations like how much loan customers would like to avail against a given item of jewellery, and their comfort levels with respect to the interest rate and periodicity of repayment of interest and principal. Incidentally, gold loans can be availed at our branches for amounts as low as a thousand rupees and as high as 1.5 crore & even above 1.5 crore as exception.

In case of default, when will the gold jewellery be auctioned off?

In case of persisting overdue, the ornaments are liable to be auctioned but only after giving sufficient notice to the borrower. Asirvad serves a reminder to its overdue accounts apart from periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction. We reiterate that

1. periodical monthly payment of interest due and
2. re set your account on or before due date, are recommended as an easy way to avoid such contingencies.

Whom do I contact for more details?

Kindly get in touch with the staff at the branch nearest to where you are located. Information about branches convenient to you can be easily obtained from our website.

Charges on Gold Loans

(*) is + taxes as applicable  

Postage Charges
Letter type and charges for intimation letters.
Notice Date	Letter Type	Charge
Due date intimation 15 days prior to maturity	Ordinary	Rs.10 *
Auction intimation after Maturity	Registered	Rs.30 *

Advertisement Charge-Auction intimation
Rest of Pan India	Rs.50 *

Delivery of gold against lost pawn ticket
First Instance	Rs.75
Subsequent Instance	Rs.100

Statement of accounts
Within 30 days of closure	NIL
After 30 days of closure	Rs.25

Criteria	Karnataka State stamp duty	Rajasthan State	Other than Rajasthan & Karnataka State stamp duty
Pledge Value less than or equal to Rs.1 lakh	Nil	0.325% of pledge value (0.25%+ 30% surcharge)	Nil
Pledge Value above 1 lakh to 10 lakhs	0.1% of the pledge value	0.325% of pledge value (0.25%+ 30% surcharge)	NIL
Pledge Value above 10 lakhs	0.2% of pledge value	0.325% of pledge value (0.25%+ 30% surcharge)	NIL

Gold Processing Charge
At the time of Loan Settlement	Rs. 10/- * (Rupees Ten only)
Additional Processing Fee on Repledge	0.07%* of New Pledge Value

Custody Charge for Nil Balance Accounts
Upto 180 days	Rs. 2
After 180 days	Rs. 100 plus proportionate additional charge for each day thereafter.

Security charges ranges from Rs.15 to Rs.95 based on the loan amount in all branches as mentioned below.
Pledge Amount	Security Charges
Up to 10000	No Charges
>10000 to 50000	Rs.15
>50000 to 1 Lakh	Rs.30
> 1 Lakh to 1.5 Lac	Rs.45
> 1.5 Lac to 2 Lac	Rs.60
> 2 Lac to 5 Lac	Rs.75
Above 5 Lac	Rs.95

Auction Charges ranges from Rs.500 to 1000 based on the loan amount as mentioned below.
		Loan Amount
Particulars	0-1Lakh	1 – 2 Lakh	2Lakh & Above
Printing & Stationary	50	100	150
Advertisement Charges	150	150	150
Transportation	50	75	100
Insurance	25	75	75
Charges paid to auctioneer	25	50	50
Postage	50	50	50
Expense incurred for sorting,litting,and other auction related work	150	250	425
Total Auction Charges	Rs.500	Rs.750	Rs.1000

Gold Loan Interest Rates:

Mode of calculation

• Interest rate will be quoted on annualized basis only.
• Interest amount will be calculated on the daily outstanding balance in the loan account at the contracted rate.
• Interest will be calculated on the basis of 365 days a year.
• Compounding, if any, will be provided in specific loan schemes.
• All loans carry the fixed contracted rate till closure of account.

Risk related rate of interest

• Since a higher LTV (loan per gram) translates to a higher risk interest rate and LTV will be correlated.
• Assuming all other factors to be the same a higher LTV loan will attract a correspondingly higher interest rate as compared with a lower LTV loan.
• The interest rate applicable will vary from time to time and will be mentioned against the specific operative schemes / loan products.

Penal / Overdue interest

• When the loan remains outstanding beyond the ‘normal’ tenure overdue / penal interest will be charged at 3% pa (i.e. Contracted rate plus 300 basis points) on the amount due and payable till the account is regularized / closed

General Terms & Condition:

1. The Borrower confirms to have fully read and understood the various schemes offered by the Company and based thereon, the Borrower has requested/selected to avail the Loan under the scheme (with interest rates as applicable) as mentioned in pawn ticket.
2. The Borrower confirms that the stones fixed in the pledged gold ornaments/items, if any, do not have any market value and that the said gold ornaments /items is/ are the absolute and unencumbered property of the Borrower and no other person has any right, title, interest or claim thereon.
3. The Borrower confirms that all particulars/details given in the applications are true and correct and no information has been suppressed/ withheld. The Borrower acknowledges that the Company shall have no liability for any consequence arising out of any erroneous/misleading details provided by the Borrower for which the Borrower shall be solely liable. The Company may sanction, at its sole discretion, loans of such amount, as the Company may deem fit, for such purpose(s), as set out in the application form.
4. The Borrower shall pay interest at the rate specified in the Pawn ticket and incidental charges as applicable to the loan. When interest is not paid at monthly intervals, the interest shall be compounded on a monthly basis. Interest will be calculated on the basis of 365 days a year on the amount outstanding. If the loan is not repaid on demand within the loan tenure, as specified in the pawn ticket, the Company shall have the right to levy overdue interest @3% P.A after expiry of the loan tenure, as specified in the pawn ticket on the amount of loan plus interest in default. Interest will be payable from the date of the loan till the account is closed, both dates inclusive.
5. The loan is based on the weight, purity, and existing market value of the Gold.
6. 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 Borrower. The Company shall, at its discretion, have the right to open the packets, melt all or any portion of the Gold, at any time during the currency of the Loan.
7. Notwithstanding anything mentioned herein, the Borrower shall repay the entire dues/outstanding under the Loan including principal, interest, 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 Borrower to the Gold is found defective or if the same is disputed by any other person. The certificate issued by the Company stating the exact grams of the gold after translating the same to 22 carats is based on the preliminary verification made at the time of granting the loan and may be treated as provisional and not final.
8. The period of Loan is as mentioned in the pawn ticket and the Borrower is required to repay the loan along with interest on or before the completion of loan tenure, as specified in the pawn ticket from the date of disbursement. However, the Borrower shall have the option to foreclose the loan at any time during the currency of the loan by paying the principal loan amount along with interest and other Incidental charges as applicable to the loan. Similarly, the Company may, at its sole and absolute discretion, have the right to further extend the tenure of the loan for such periods, but not exceeding one year from the date of disbursement of the loan. Borrower can also make part payments of principal or interest at any time during the currency of the loan. Pre-payment charges, if any, will be mentioned in the pawn ticket. Notwithstanding anything mentioned herein, the Company shall be entitled to recall / cancel the Loan at any time at its discretion without assigning any reasons and thereafter the Dues shall immediately become payable to the Company.
9. The postage charges, as revised from time to time at the discretion on the Company, shall be recovered from the respective account.
10. If full repayment of the loan, along with interest and charges, is not made within the period of the loan (as specified in the pawn ticket) or within such period as demanded by the Company, the Company shall have the right to sell or otherwise dispose of the Gold through public auction at the risk and cost of the Borrower. The Borrower, out of his/her free will, authorizes the Company to dispose of the Gold by public auction at any time after 2 weeks from the date of notice to the Borrower at the given address and adjust from the net proceeds of such sale, all amounts, including interest and other charges, due to the Company in respect of the loan. If there is any surplus on such sale, the Company shall have the right to appropriate such surplus towards any other liability of the Borrower, solely or jointly with others, on any account whatsoever, to the Company at any of its offices. The net surplus, if any, after such appropriation, shall be refunded to the Borrower within 30 days of auction. In case of any shortfall after disposal of the Gold, the Company shall have the right to resort to legal proceedings against the Borrower to recover the shortfall.
11. Notwithstanding anything referred above, if the Company is convinced, at its sole discretion, that the estimated realizable value of the gold at any time is less than the total amount due by way of principal, interest and other charges on this loan or on any other loans availed by the Borrower at any of the branches of the Company or there exists any other circumstance, which in the sole opinion of the Company, is prejudicial to the interest of the Company, the Company reserves the right to sell the gold by public auction at any time during the currency of the loan after serving a registered notice to the Borrower.
12. Further, the Borrower understands and acknowledges that the Company shall subject to auction, all accounts remaining fully or partially unsettled after expiry of the loan tenure, as specified in the pawn ticket or otherwise. The Company shall intimate the Borrower by registered letter or courier service or SMS or telephone or personal intimation or e-mail or any other mode of communication its intent to subject the Gold to public auction well before the proposed auction date. The auction shall be conducted as per the guidelines issued by the concerned Regulatory Authorities from time to time. The list of accounts subject to auction along with the date and venue for auction shall be displayed at the concerned branch of the Company and on the Company Website and shall also be published as per the guidelines issued by the concerned Regulatory Authorities from time to time.
13. In the event of loss of pledged Gold due to theft, burglary or for any other reasons from the custody of the Company, the liability of the Company shall be limited to replacing the lost Gold with equal net weight as mentioned in the loan application form / pawn ticket.
14. The Company shall have the right to exercise lien on the Gold offered as security for this loan to secure the repayment of any other liability of the Borrower to the Company, which is due and payable, until such other liability is also fully settled. Exercise of such lien will be duly intimated to the Borrower by letter, courier service, email, SMS, telephone or any other mode of communication.
15. The Company may effect changes prospectively in the interest rate, charges etc. after due intimation to the Borrower. The Borrower undertakes to settle the loan within 7 days of the date of such intimation in case the revised rate of interest, charges etc., as intimated by the Company are not acceptable to the Borrower.
16. The Company shall have the right to assign or transfer or securitize the rights to obtain necessary advance or financial facility from any Bank or Financial Institution or other organizations or for any other lawful purpose, at any time during the currency of the loan.
17. The address for all communications to the Borrower shall be the one furnished in the loan application form by the Borrower. Unless any change of address is duly intimated by the Borrower to the Company in writing and duly acknowledged, any communication sent to the Borrower in the address furnished in the loan application shall be tantamount to valid receipt / acceptance of the communication sent by the Company. The Borrower shall also keep the Company duly intimated about any changes in the recorded landline phone or mobile phone number to facilitate communications. The Borrower understands and agrees that the Company may contact the Borrower over phone to pass on transactional as well as promotional communication and the Borrower consents for the same. It is also understood and agreed by the Borrower that such conversation may also be recorded by the Company for future use.
18. In the event the Borrower fails to produce the pawn ticket at the time of settlement, the Company may, at its sole discretion, deliver the pledged Gold of the Borrower after completion of the prescribed formalities and subject to payment of processing charges, as may be applicable from time to time.
19. The Borrower shall bear, pay and reimburse all present and future charges relating to administration, interest tax, service tax, duties (including stamp duty), sales tax/VAT and taxes (of any description as may be levied by the Government or any other authority from time to time) and all other costs and expenses whatsoever in connection with (a) application for and the grant and repayment of the Loan; (b) recovery and realization of the loan together with interest; (c) enforcement of Security ; (d) clearance of arrears of all taxes and any other charges and levies of the Government in respect of Security and (e) insuring the Security.
20. The rate of interest and the approach for gradation of risk and rationale for charging different rates of interest to different category of customers is based on the details/attributes of the loan scheme vis-a-vis Loan to Value (LTV), tenure of the loan and the amount of the loan extended.
21. The locker facility, if any, provided by the company at any of its branches is not regulated by the Reserve Bank of India
22. The Company shall have the right to make disclosure to Credit Information Bureau of India Ltd. (CIBIL) or such other similar agencies.
23. All disputes, differences and/or claims arising out of or touching upon this loan, whether during its subsistence or thereafter, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory amendments thereof and shall be referred to the Arbitration of a Sole Arbitrator to be appointed by the Company. The award given by such Sole Arbitrator shall be final and binding on the Borrower and the Company. The venue of arbitration shall be in Kerala.