Gold Loan Operational Schemes

The S-Category branches are located in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana.

Gold Loan Schemes for S-Category Branches

Gold Loan Schemes for A-Category Branches

Gold Loan Schemes for B-Category Branches

Gold Loan Schemes for C-Category Branches

• Interest will be charged after a 30-day period, plus a 3-day grace period.
• Interest shall be compounded monthly in all schemes.
• The PL1 Scheme is applicable only in the state of Kerala.
• The S category branches include Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana.
• The Takeover Scheme (MT+A, MT+B, MT+C, MT+S, MT PLUS, MT+2) follows the same conditions, with a minimum interest period of 15 days.

Branch Categories List

OGL Special Rebate for X/PL1 schemes

Terms and conditions

• For counting the number of repledges every 15 days, the difference between two pledges shall be a minimum of 1 day; otherwise, no rebate will be provided. For example, if a customer takes a loan on 02/03/2024 and repledges on the same day, they will not get a rebate. If they repledge the next day, they will get a rebate. This rebate is available only for X and PL1 schemes.
• Only repledges made via the Web or App will be considered for interest rate rebate eligibility.
• Repledges made on the inventory creation day will not be considered for interest rate rebate eligibility and will not be counted towards the repledge count if the amount is disbursed in cash.
• The scheme and rebate are available only to customers who are registered under the OGL scheme.
• While calculating interest, the first day (one day) of interest on a gold loan should be waived when repledging.
• If the customer’s loan is disbursed in cash, they will not receive a rebate. A rebate is only granted if the customer repledges through the online platform.
• Interest is calculated in full, and the rebate will be applied to the next repledge.
• If the customer pays interest in cash, the full interest will be calculated at the higher slab rate. The rebate will be applicable from the next repledge onwards.
• All other conditions of the OGL special rebate scheme remain the same.

Prompt Payment Rebate

• In rebate model schemes, customers are eligible for a prompt payment rebate based on timely interest payments made within a grace period of 3 days.
• Rebate eligibility will be calculated based on the difference in days between the full interest payment made by the customer and the rebate, which will be applied at the monthly, bimonthly, or quarterly rebate rate applicable to each scheme.
• The rebate is applicable only on full interest payments made by the customer and is valid up to the end of the respective loan tenure.

(NB: Gold ornaments with assessed purity below 70% (<17 Ct) will not be accepted as collateral for gold loan disbursement in all states except Orissa and Bihar. In Orissa and Bihar, gold ornaments with assessed purity below 75% (<18 Ct) will not be accepted.)

When fixing stone-set gold ornaments as a pledge, the actual weight of the stones shall be deducted in addition to the standard deduction based on the purity of the gold from the gross weight.

Deduction Based on weight of stone

(NB: Stone-set gold ornaments will not be accepted as a pledge if the weight of the stones exceeds 50% of the gross weight.)

• An auction will be conducted once the Loan-to-Value (LTV) ratio exceeds 97% (ranging from 97% to 98%) with a 15-day notice. The enabling clause for this will be included in the loan documentation.
• MTM (Mark-to-Market) evaluation will be conducted periodically to assess the risk of the portfolio. Loans in the mentioned category will be reviewed for auction on a monthly basis.