THE KERALA STATE CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD(KSCARDB)

Comprehensive Rural Development Through Credit

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

    • 55% of the present market value or 75% of the realizable value, if the loan period is 1 year

    • 60% of the market value, if the loan period is 6 months

    • 75% of the market value, if the loan period is 3 month

  • 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.