Gold loan

Whats a gold loan all about?

If you need funds for the purpose like medical expenses or any other contingencies, various banks are providing gold loans to meet your expenses.

Hassle free quick loans, no-obligations and no guarantee required.
Reasonable rate of interest -0.99% and above.
90% of the maximum value.
30 minutes processing time.
Repayment according to your convenience in equated monthly installments upto 30 months.
Loan available from reputed RBI regd lendors

Eligibility for Deposit

Individuals, Hindu Undivided Families, Trusts and Companies are eligible to subscribe to the Gold Deposit Scheme (GDS). All these however, need to have a Resident Indian status as per the prevailing tax laws.

Tenure

A deposit under the scheme can be made for a period of 3,4,5, 6 or 7 years.

Gold Rupee Conversion Rate

Valuation of Gold-Rupee conversion rate for payment of interest and repayment on maturity/premature withdrawal will be based on the following conversion factors for the respective day.

(a) London AM fixing for Gold -US $ rate. In case, it is not a business day in London, the previous London AM fixing rate will be taken into account for this purpose.

(b) Rupee-Dollar reference rate announced by RBI.

(c) The prevalent custom duty for import of gold will be added to the value arrived at through (a) and (b) to arrive at the value of gold.

Interest is paid in rupees only.

A depositor has the option of taking interest annually or letting it compound on an annual basis. In the second case interest will be paid at the time of maturity.

Payment of interest will be made in terms of rupee equivalent to the price of gold on the day interest is due.

Deposit procedure

Some of the important points associated with the actual deposit procedure are -

Deposit is accepted in various forms such as gold bars, coins, jewellery etc. The jewellery should however be without any stones or gems or any other precious stone. Further, the jewellery tendered should not have ornamental or antique value.
All jewellery has to crushed by the tenderer.
The minimum quantity that has to be tendered is 200 grams.
A preliminary assay will be conducted after which the depositor will have the option of withdrawing the tender.
The deposited gold is kept inside a bag and sealed after the weighing and preliminary testing. This is done in front of the depositor.

Issue of Receipt

The depositor is given the option of taking the receipt in the form of either a Gold Deposit Certificate or Statement of Account/Passbook.
The Gold Deposit Certificate is treated as a mercantile document and is transferable by endorsement and delivery. Deposit in the form of statement of account and passbook is not transferable.

Repayment

Repayment of the deposit is done in the form of both cash and gold.

If the depositor wants repayment in rupees, the gold-rupee conversion rate for the date of maturity will be considered.

In case of redemption in the form of gold, the bank will hand over to the depositor gold of 995/999 fineness in multiples of 10 grams/TT bars. Adjustment is made in the weight mentioned in the final receipt in case redemption is made in 995 bars instead of 999 bars. However, quantity in excess of multiples of 10 grams is paid in rupees only.

The depositor has the option of renewing the deposit on the date of maturity at the then prevailing interest rates.

Premature Payment

No premature withdrawal is permitted in the first year of deposit.

The bank in the case of premature payment levies a penalty. The amount of penalty varies with deposit period and the date of premature encashment.

If the depositor wants premature withdrawal in rupees, the gold-rupee conversion rate for the date of premature withdrawal will be considered.

Transferability

Only the Gold Deposit Certificate is transferable and not the statement of account of account / passbook.

The transfer needs to be registered with the agency / branch prescribed by the bank.

No transfer is permitted during the 30 days preceding the date on which interest is due and in the last 90 days preceding the date of maturity.

Statement of Account / Passbook can be converted to a Gold Deposit Certificate on the payment of the prescribed fee

Tax Treatment

Interest earned under the scheme is exempt from Income Tax.

The value of assets deposited is also exempt from Wealth Tax.

Deposit is exempt from capital gains made through trading or redemption.