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.
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.
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
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.
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.