Gold Loan
| Margin | 25% |
| Maximum Repayment Tenor | Tenure of up to 36* Months |
| Collateral Security | Yes |
| Processing Charges | Nominal Processing Fee has to be Paid in Availing a Gold Loan |
| Documentation Charges | Nil |
| Product Name | Rate Of Interest |
|---|---|
| Surjit Gold Loan | Minimum 0.85%* |
Rates Vary According to the Amount and Tenure & Purity
Gold loans are secured loans where the customer pledges the gold ornaments they hold as a collateral deposit against the money they are going to receive. Gold loans are usually taken for short term financial obligations.
Gold loans are secured loans whereas personal loans are unsecured. The gold loan requires a collateral deposit, where the gold itself is pledged against the money the customer receives, while in personal loans collateral deposits are not required. Gold loans allow greater disbursal amount; through the gold loan, you can draw up to 80 lakhs while personal loan allows disbursal up to just 40 lakhs. The lower interest rate of the gold loan is another feature that has convinced people to avail gold loan facilities widely for their financial requirements.
Procedures included in the application for a gold loan are very simple. You have to first approach a lender; the lender will value your gold and calculate the maximum amount you can borrow. You will be required to fill a loan application for this and submit necessary documents such as copies of ID proofs and valid address proof. Once the value is calculated the money is instantly disbursed and you can use it for your intended purpose immediately.
Anybody over the age of 18 can apply for a gold loan provided he or she is the actual owner of the ornaments they present. The banks are not required to consider factors such as income, age, credit score, banking history, etc.
Anyone who owns gold ornaments can avail the loan. (Note: minors are not eligible.) To obtain the loan you need to submit your gold jewellery (within a karat range of 18 to 24 k) at the branch. The loan amount that is sanctioned will be based on the gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.
Our base rate of interest is 12 percent. However, depending upon how high the loan to value (LTV) is, additional interest (amounting to risk premium) ranging from 3-18 percent is charged over and above the base rate.
Our gold loan products have a tenor of 3 months – 12 months. Customers are counselled to service the interest on a monthly basis, to avoid risk of default.
Once you submit your application form and supporting documents, we shall give approval within a matter of minutes provided everything is in order. All loan approvals are at the sole discretion of the branch head.
Gold ornaments accepted as pledge by the customers are stored at the branches in strong safe / strong room built to the standards and specifications applicable to commercial banks. The pledged gold ornaments are insured for full value. Moreover, electronic surveillance technology is deployed to protect the gold.
No. Unlike other loans, there is no need for either a Guarantor or Introducer and However, we recommend transactions through bank account, as it comply regulations.
You repay the loan at the end of the loan tenure or EMIs every month. However, interest has to be serviced periodically, as per the terms of sanction. Repayments can be made in cash, or Online Payments by cheque or DD. Enquiries about outstanding amount etc. can also be made at Branche’s & website login. However, the pledged ornaments will be released/handed back only at the branch from where the loan was originally availed. We have also enabled online payment of interest and repayment (full or partial) of principal. Instructions on how to make such online payments are given on ONLINE GOLD LOAN section of this website.
Surjit Finance Gold loans may be availed for any amount between Rs.3,000 to a maximum of Rs.60 lakhs. Loan requests more than 60 lakhs shall be considered with special approval of management. Loans are available for periods 3 months to 12 months.
Customers are free to repay part amount of loan and/or accrued interest thereon at any time in order for payments.
The customer has to submit the pawn ticket (given to them at the time of taking loan) to the counter staff at the branch with a request to close the loan account. The staff will enquire into your account in the (computer) system and inform you of the outstanding loan amount (principal + interest accrued). By depositing the outstanding loan amount with up-to-date interest, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.
In case loan amount is not repaid on or before the due date, penal rate of interest is liable to be charged on the loan amount from the due date of loan.
Appraising is done in the presence of the customer only. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.
The most important things from the customer’s perspective are transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any mala fide actions after the jewellery has been pledged. The choice of loan products should cover the range from high LTV (loan to value) to low LTV, with appropriate variations in interest rates. At Surjit Finance, you will find that all these aspects are well taken care of.
In addition to the transparency, security and range of its gold loan products (as mentioned above), Surjit Finance distinguishes itself from others primarily on the basis of the ease with which gold loans can be availed from our branches. The only requirement is that borrowers present themselves at our branches with the gold jewellery and with a valid ID and address proof. Our streamlined systems and procedures ensure that a gold loan can be availed in a matter of minutes. Also, we offer the highest LTV to those interested in availing the maximum amount of loan against their jewellery. We are able to do this because with our long experience in the business, we have acquired the capability to handle the extra risk involved.
Our gold loan schemes fall broadly into following categories:
Our products are tailored not to the income group of the customer, but to relevant considerations like how much loan customers would like to avail against a given item of jewellery, and their comfort levels with respect to the interest rate and periodicity of repayment of interest and principal. Incidentally, gold loans can be availed at our branches for amounts as low as a three thousand rupees and as high as 60 lakhs rupees & even above 60 lakhs as exception.
In case of persisting overdue, the ornaments are liable to be auctioned but only after giving sufficient notice to the borrower. Surjit Finance serves a reminder to its overdue accounts apart from periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction.