Agriculture Policy and Information Section

Priority Credit Wing, Head Office, Bengaluru

APIS/ES/1/2020-21 EDUCATIVE SERIES DATE: 20.04.2020

 The prospective borrower should have an SB account with the branch before availing the loan. The
loan proceeds should necessarily be credited to SB account.
 Gold loans are to be granted only against gold ornaments and not against gold coins, Gold Bullion/
Gold Bar, Primary gold. While advancing against the security of specially minted gold coins, weight of
the Gold coins shall not exceed 50 grams per customer.
 Value and lending rate per gram of Jewellery will be uploaded by PC Wing in CANNET/INHOUSE
PORTAL on the last day of every month.
Cannet Quick links Gold lending Rate
 Branch Managers are empowered to sanction these loans within the overall limit fixed by the Circle
Office/Regional Office. In urban and metropolitan cities, gold loans shall be sanctioned only in the
branches designated by the Regional Office duly taking into account potentiality and security
aspects.
CHARGES

1) APPRAISAL FEE:
Loan Amount Appraisal Charges
Up to Rs.5.00 lac 50 paise per Rs.100/- (limit sanctioned) with a Maximum of
Rs.200/-
> 5 lacs 50 paise per Rs.100/- (limit sanctioned) with a Maximum of
Rs.300/-

2) PROCESSING CHARGES AND INSPECTION CHARGES

Loan Amount Processing Charges and Inspection Charges

Up to Rs.0.25 lacs NIL
Above Rs.0.25 lacs up to Rs.1 lac Rs.300/-
Above 1 lac up to Rs.2 lacs Rs.600/-
Above 2 lacs up to Rs 5 lacs Rs.900/-
Above 5 lacs upto Rs.10 lacs Rs.1200/-

3) GOLD LOANS – HANDLING CHARGES : To be collected in case of Gold Loans Closed within three
months from the date of Sanction/Disbursement.

Loan Amount Handling Charges

Up to Rs. 5.00 lac Rs.100/-
> 5 lacs Rs.200/-
 4) SAFE KEEPING CHARGES FOR GOLD LOANS: After 30 days of the expiry of the prescribed tenure of
gold loan.

Loan Amount Safe Keeping Charges

Up to Rs.5.00 lac Rs.100/- per month
> 5 lacs Rs.200/- per month

5) GOLD LOAN RELEASE CHARGES: Rs. 100/- per loan to be collected at the time of closure of loan,
after 3 months of sanction/disbursement, irrespective of loan amount.

6) FOLIO CHARGES: Folio charges are applicable in respect of running limits like GL OD. Debiting folio
charges at half yearly intervals (March and September) at Rs.100/- for 40 entries/part thereof.
Recovery of folio charges shall be along with interest dues.

7) CIC CHARGES: While generating CIC report, Rs. 50/- per report has to be collected from the
borrower and credited to GC- Miscellaneous.

(Of the above charges, processing cum documentation charges and folio charges are automated and
will be collected by the system and the rest of the charges are to be collected manually)

PROCEDURE FOR GRANTING GOLD LOANS:

 Jewels to be accepted as security for gold loan, will be handed over to the Jewel Appraiser for
weighing, appraisal and certification in presence of borrower and Manager/Officer. The appraisal
should be done at the branch itself in the presence of the borrower and officer of the Bank.
 The appraiser shall be seated in such a way that the appraisal work is monitored /captured under
the surveillance of CCTV camera.
 The Jewel Appraiser after appraising the jewels, should record the details in NF.497 under his
signature. Details such as name and address, Small farmer, Marginal farmer, SC/ST, Minority
community and Purpose etc., should be noted in the application.
 The Officer should verify that the particulars such a s g r o s s w e i g h t , n e t w e i g h t and other
details of jewellery pledged have been mentioned in NF.497.
 The Manager should note the amount granted against t h e security, in consultation with the party
and the rate of advance permitted. The Letter of Request NF.497 should be handed over to the
concerned Clerk for preparing the slips.
 Loan amount to be necessarily credited to the borrower's account with the Bank. Transaction Slip
to be prepared for crediting the proceeds to the party's account under authentication of the
sanctioning authority. However, the borrower's signature should also be obtained on the reverse of
the Transaction Slip as we are not obtaining Pronote for gold loans.
 The concerned Clerk should make the necessary entries in the system and send the slips and the
loan papers t o the Officer/Manager/ Senior Manager.
 Loan account Pass Card is to be prepared in duplicate and should be verified and signed by the
Supervisor. One is to be handed over to the borrower with his/her acknowledgement and one should
be kept inside the gold loan packet.
  All particulars of the loan account such as name, number, date of advance, amount, etc., are
written on the Gold Loan Ticket NF. 367 in duplicate. The jewels are to be kept in a cloth bag of
adequate size. One Gold Loan Ticket is securely fastened to it and the other ticket is placed inside
the bag, so that in case the outside ticket gets detached due to constant handling, the jewels
could be identified. The bag should be tied in such a way that the contents do not drop out of the
bag.
 The Double Lock key holders have to check the jewels with the letter of request for loan NF. 497 and
place the same immediately in t h e FBR Strong Room/FBR safe, after making e n t r i e s i n NB.132
(Loan paper Inward Register).
 The securities have to be arranged serially and kept in the Double Lock.
 Loan papers should be arranged serially in files and should be placed preferably in the
Strong Room/FBR Safe OR in Fire Resistant Record Cabinet (which basically has dual locking
arrangement)

PROCEDURE FOR CLOSING GOLD LOAN:

 Branches should invariably insist on production of gold loan pass-card while closing the loan
account. In cases where the production of gold loan pass-card is not possible for any genuine reason,
branch manager should take necessary precautions to ensure that the person is the pledger, and the
fact of having released the jewels without obtaining the gold loan pass-card is to be recorded in the
system or in NB 175 Gold loan pledge and redemption register as the case may be.
 In a l l c a s e s of redemption o f g o l d jewellery, t h e borrower s h o u l d b e asked to give the
description of jewels p l e d g e d .
 A common – pay- in - slip for the total l i a b i l i t y i n the account after debiting interest and any
other charges and when the amount is received by the Cashier, the c h al la n is entered in the system.
 The entries should be checked by the Supervisor. Then the securities and the loan papers are to be
taken out f r o m t h e s a f e by the Double Lock Key holders duly noting in the l o a n paper inward
register NB. 132.
 While redeeming the gold jewels to the borrowers, his/her acknowledgement for having received the
pledged jewels in good and original condition is to be taken in NB 175 “GOLD PLEDGE AND
REDEMPTION REGISTER"
 In the case of illiterate persons, his /her left thumb impression should be got attested by a person
known to the Bank, and it is to be ensured that the Gold is to be returned to the pledger only and not
to the third party.
 The right of general lien/ set off is applicable in case of the gold loan and the clause to this effect is
incorporated in NF 497.

D VIJAYA KUMAR
GENERAL MANAGER