Gold Loan Scheme
The KSCARD Bank has proposed a scheme to extend a new line of credit to the
affliated PCARDBs in the State to provide production credit / working capital loan
for Agriculture and allied activities to its members against the pledge of gold
ornaments. The eligible PCARDBs in the State for availing this ;line of credit
from the Apex Bank during 2003-04 should have recorded a recovery of 55% and
above as on 30-06-03. The scheme will commence operation from September,2003
onwards.
Eligible Borrower : Gold Loan shall be advanced to a member ,
including‘A’ or ‘B’ class member of the PCARDB and there shall not be any
sharelinking for such loan advanced.
Purpose: Gold loans are granted against the security of gold ornaments for
providing S.T.Credit/ W.C. for crop loans under Agriculture and allied activities,
and under Non-farm sector ,viz; for Agriculture (AGL), Production credit under
N.F.S. (WCGL), and Allied Activities Credit (AAGL). Repledging of gold
ornaments are not allowed.
Period of the Loan: The period of the loan ranges from 3 months (AGL),6
months(AAGL) and 1 year(WCGL).
Min & Max Limit : Gold loans are granted in multiples of
Rs.100/- with a minimum of Rs. 1000/- and a maximum limit of Rs. 50000/-.
Quantum of Loan: Loans on the pledge of gold ornaments shall not
exceed;
a)55% of the present market value or 75% of the realizable value, if the loan
period is 1 year.
b)60% of the market value, if the loan period is 6 months.
c)75% of the market value, if the loan period is 3 months.
Service Charges : The service charges on gold loan will be Rs.0.20 per Rs.
100/- with a minimum of Rs. 10/- and a maximum of Rs. 30/-.This will be
inclusive of Appraiser fee.
Repayment period: The loan shall be repaid with interest within the loan
period either in instalments or in lump. The interest is to be remitted on a
quarterly basis and failure to repay the loan with interest on the due date will
necessitate the PCARDB to charge penal interest @ 2.5% on the defaulted amount,
till the same is recovered.
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