Loan against pledge of gold ornaments is available for advances under priority sector. The scheme been implemented through selected branches all over the country. The gold ornaments / jewellery must belong to the persons pledging them and he/she must be a local resident and preferably an account holder of the branch. In case there is no account, the identity, address, introduction etc of the person should be provided to the satisfaction of the branch.

The advance value is fixed as per valuation of gold ornaments to be pledged by the applicant based on the purity of the gold and the prevailing market price of the gold.  The valuation of the ornament will be done by the Bank’s approved assayer/valuer.

The maximum amount that can be availed under the scheme is ` 3.00 lacs under scheme.

Repayment schedule will as per the income generation of the borrower depending on the purpose of loan. Maximum period allowed under the scheme is 24 months.

The Rate of Interest depends on the sector of advance as per RBI / Bank’s guidelines in the matter which varies from time to time.

For Agricultural purpose, a declaration given by the applicant is enough for proof of holding and cultivation requirement.

Loan under this scheme is not sanctioned against the pledge of gold coins, bullions etc.