Product Details
Name of Bank
Indian overseas
Bank
Maximum Loan Amount
Rs. 25 Lakhs.
Interest Rate
7%
Loan to Value Ratio
65% to 75%
Maximum Loan Tenure
Maximum 3 Years
Agriculture Term Loan - Jewellery
Fees and Charges
Processing fee :- 0.15% of the loan for loan upto Rs. 10.00 lakhs with minimum of Rs. 150/-
Prepayment Penalty: NIL
Late Payment Penalty: Up to 30 days: 0.25% of the outstanding balance
31-60 days: 0.50% of the outstanding balance
61-90 days: 0.75% of the outstanding balance
91 days and above: 1.00% of the outstanding balance
Penal Interest- 2% p.m.
Legal And Other Charges: Nil
Minimum CIBIL Score
N/A
Eligibility
1. Age: 18 years and above 2. Any individual owning gold ornaments/Jewellery/Coins. 3. Loans can be granted against gold ornaments/Jewellery and specially minted pure gold coins sold by our bank/other bank. The total weight of the coins should not exceed 50 grams per customer. 4. Existing as well as new customer, whose willingness to open account with us.
Fees and Eligibility
Concession and Features
Special Concession
None
Special Features
None
Pros
Express Speed of Sanction Lower Processing Charge Competitive Interest Rate No Closure Charges No Documentation Charges
Cons
Risk of foreclosure. The borrower may have to pay additional charges, such as processing fees and prepayment charges.
Pros & Cons
How to Open?
Application process: Visit your nearest IOB branch and collect the Agricultural Gold Loan application form. Fill out the application form completely and accurately. Attach the required documents, which include: KYC documents such as Aadhaar card and PAN card Proof of agriculture land ownership or lease agreement Gold ornaments to be pledged as security Submit the completed application form and documents to the bank branch official. The bank will evaluate your application and sanction the loan amount based on the value of the gold pledged and your creditworthiness. Once the loan is sanctioned, you will be required to sign the loan agreement and collect the loan amount.
Documents Required
Identity proof: Aadhaar card, PAN card, or passport Address proof: Aadhaar card, driving license, voter ID card, or utility bill Agricultural land documents: Khata or passbook, land title deed, or lease agreement Gold ornaments: The gold ornaments must be of at least 18 carats purity and in good condition Income proof: This is not mandatory for agricultural gold loans, but the bank may ask for it if the loan amount is high Bank statement: This is to verify the borrower's banking history Photographs: Two passport-size photographs of the borrower
Account Opening and Procedure
Indian Bank
Indian Bank Jewel loan provides two loan schemes
1. Bullet Repayment
2. Monthly Repayment
The interest rate varies from 8.65% to 9.00% which is moderate as compared to different banks offering gold loans. However, the LTV Ratio is low i.e., only 65-70%, the other banks in the market offer higher LTV Ratio on the gold loans. Therefore, before applying for such loan check the terms and conditions properly and compare different banks offering gold loans.
Abhijeet Saxena
Abhijeet Saxena
Nalsar University of Law
Ex- Senior Associate, Shardul Amarchand Mangaldas, Delhi
Ex - Khaitan & Co. Bengaluru,
Ex - National Stock Exchange, Mumbai,
Ex - Argus Partners, Mumbai