Jewel Loan

Jewel Loan

The Bank provides Jewel Loan against pledge of gold ornaments to the residents of Bangalore city.


The loan applicant should be/become a nominal member of the Bank. Gold articles should be delivered in person with Address proof or ID proof. In case, the applicant is already not a member of the Bank, a person who is well known to bank should introduce him to the bank.

The Bank will engage a Gold Appraiser to value the gold articles. Based on the valuation report, Rs.4,950/- per gram or 75% of the market value, which ever is less, is considered for quantum of loan.


Maximum loan given is Rs. 40.00 lakhs.

Rate of Interest:
9.00% per annum

As per the guidelines of RBI, interest shall be recovered at monthly rests.

The Jewel loan interest shall be paid on monthly basis. If the borrower fails to pay interest at monthly rests, the interest so due shall be charged to the loan account.

If the borrower fails to pay interest for two successive quarters, the entire principal amount shall be treated as overdue & the Bank shall bring the gold ornaments pledged for auction for recovery of Loan & interest thereon.

Maximum limit:

For individual loanee is Rs 60.00 lakhs inclusive of all loans.
The repayment period for the loan is 24 months and interest should be paid every month. 2 % penal interest will be collected on overdue amount.

Service charges along with Jewel Appraisal chargers will be collected for each loan.

The loan will be considered only if the gold is 22 carat.

The ornaments will be kept in a bag with tag and waxed seal and in the joint custody of Br.Manager and Asst. Manager.

The gold article will be delivered only to the borrower, after closing the account and returning the gold loan receipt.