Gold Loan

Purpose
Gold loans are granted against the security of gold ornaments for providing S.T.Credit/ W.C. for crop loans under Agriculture and allied activities, and under Non-farm sector ,viz; for Agriculture (AGL), Production credit under N.F.S. (WCGL), and Allied Activities Credit (AAGL). Repledging of gold ornaments are not allowed.

Eligible Borrowers
Gold Loan shall be advanced to a member, including 'A' or 'B' class member of the PCARDB and there shall not be any sharelinking for such loan advanced.

Loan Period
The period of the loan ranges from 6 months to 1 year.

Min & Max Limit
Gold loans are granted with a maximum limit of Rs. 15,00,000/-.

Quantum of Loan
Loans on the pledge of gold ornaments shall not exceed 80% of the realizable value.

Service Charges
The Appraiser Fee on gold loan will be a minimum of Rs. 100/- and a maximum of Rs. 500/-.

Repayment Period
The loan shall be repaid with interest within the loan period either in instalments or in lump. The interest is to be remitted on a quarterly basis and failure to repay the loan with interest on the due date will necessitate the PCARDB to charge penal interest, till the same is recovered.

Rate of Interest
Loan Amount    Up To    -    15,00,000    ::    9.5     %