Business Segment

Power Up Your Business Growth with SIB Gold Xpress Loan

Need fast business funding? South Indian Bank’s Gold Loan for Business lets you unlock funds using your gold jewellery. Enjoy attractive interest rates and minimal paperwork. Quickly boost working capital, expand your business, or upgrade equipment - while your gold stays safe and secure in your name.

Features of the SIB Business Loan Against Gold

Up To Rs.50 Lakh Funding: Access higher funding based on the value of your gold jewellery.
36-Month Repayment Flexibility: Enjoy a longer repayment tenure for comfortable repayments and better cash flow management.
Loans Starting From Rs. 25,000/-: Avail a gold loan starting from Rs. 25,000/- to meet your immediate business funding needs.
Flexible Interest Servicing Options: Select monthly or half-yearly interest servicing options based on your repayment preference.
Fast Loan Processing: Experience a smooth and efficient process for quicker access to your loan amount.

Eligibility to avail a loan against gold jewellery is as below:

The applicant must:

Be 18 years or above.
Own eligible gold jewellery to pledge as collateral.
Pledge gold of 18 karats or above, subject to valuation, credit assessment, and repayment capacity.
Provide valid documents confirming engagement in income-generating activities.

How Your Business Gold Loan Amount is Calculated with Loan-to-Value (LTV) ratio

Your loan amount is linked to the market value of your gold. The higher the value of your gold, the higher the loan you can get - up to a defined percentage of its appraised worth (LTV). For example, at 85% LTV, you can borrow up to 85% of your gold’s value.

Here is how to apply for a gold loan for your business needs:

Visit any South Indian Bank branch to apply for a gold loan.
Submit your gold jewellery along with valid business documents.
Share your details online if you want our team to contact you.

Apply Now to Get Started!

Our transparent fee structure ensures you know exactly what to expect throughout your loan journey. Check out the various rates and charges related to SIB Gold Loan.

Category	Details
Interest Rates	Check Interest Rates
Other Charges	Handling Charges - Rs. 200/- to Rs. 2,000/- GLREN Charges - Rs. 200/- onwards, up to a maximum of 0.25% of the loan amount Appraiser Charges - Starting from Rs. 150/- per packet Certificate cum gold loan token card missing charges - Rs. 100/- per packet

VALUATION AND ASSAYING OF GOLD COLLATERAL

The valuation of gold jewellery, ornaments, and coins accepted as collateral shall be based on the reference price corresponding to their actual purity (caratage). For this purpose, the lower of the following two values shall be considered:

The average closing price of gold (for the specific purity) published by the India Bullion and Jewellers Association Ltd. (IBJA) or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) over the preceding 30 days; or
The closing price of gold (for the specific purity) published by IBJA or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) on the preceding day.

METHODOLOGY FOR DETERMINATION OF NET WEIGHT

Purity verification methods include:
- Stone-touch testing
- Nitric acid testing
- Densitometer analysis (mandatory where available)
Gross weight is recorded using Legal Metrology Department certified weighing machines.
Weight attributable to stones, beads, strings, wax, or other non-metal elements is fully excluded.
Gold jewellery/ornaments/coins between 18 and 22 carats only are accepted as eligible collateral.

METHODOLOGY FOR DETERMINATION OF VALUE

Value of gold is derived from benchmark price sources:
- India Bullion & Jewellers Association Ltd. (IBJA), or
- A SEBI-regulated commodity exchange
The Bank adopts the lower of:
- Previous day’s closing price, or
- 30-day average price of the relevant purity
Pricing is applied based on the actual caratage of each item.

GOLD AUCTION PROCESS

South Indian Bank extends credit facilities against the pledge of gold jewellery, ornaments, and coins. Given the inherent volatility of gold prices, timely repayment of gold loans is imperative. All gold loan accounts must be settled by repaying the principal, accrued interest, and applicable charges on or before the due date stipulated in the sanction terms.

In the event of non-repayment, the Bank reserves the right to initiate recovery measures, including the auction of pledged gold collateral, in strict adherence to RBI guidelines and the Bank’s internal policies.

Comprehensive notices are duly served to borrowers via registered post at the address recorded with the Bank or through any other permissible mode. This ensures borrowers are afforded a reasonable opportunity to regularise their accounts. Following the issuance of such notices, a Public Notice (where the initial notice remains undelivered), thereafter followed with newspaper publications regarding the Auction and an Auction Notice, will be issued. The auction shall then proceed as per the following timelines:

For Overdue/ NPA cases
If notice delivered to the borrower	Within 38 days from the date of default
If notice not delivered to the borrower	Within 54 days from the date of default

For LTV breached accounts
If notice delivered to the borrower	Within 20 days from the date of breach
If notice not delivered to the borrower	Within 45 days from the date of breach

Transparency and Fairness
- Auction notices are published in at least two leading newspapers (one in the regional language and one national daily), explicitly detailing the date, time, venue, and reserve price.
- The reserve price is set at no less than 90% of the current market value of the gold (based solely on net weight). It may be revised downward to 85% only if two successive auctions fail to elicit bids.
- Auctions are conducted through open competitive bidding in a fair, transparent, and equitable manner. Should the auctions be unsuccessful, the loan account will be closed using proceeds from private negotiations.
- Auctions are held at the respective branch where the gold loan was originally availed.
Borrower Rights
- The borrower may redeem the pledged gold at any time up to the previous working day before the scheduled auction.
- Borrowers and their legal heirs are permitted to participate in the auction.
Post-Auction Procedures
- The successful bidder takes possession of the gold upon full payment.
- Any surplus proceeds (after adjusting any other bank dues) will be refunded to the borrower or legal heir within 7 working days.
- In the case of any shortfall, appropriate recovery proceedings will be initiated as per the terms of the loan agreement.

All auctions are executed with rigorous compliance to RBI directives concerning valuation, notice periods, and transparency. For specific details pertaining to your gold loan account, kindly contact your branch.

Frequently Asked Questions

Get answers to your queries

You can fill up the loan application form and submit it online. A team member of SIB’s gold loan department will get in touch with you for further steps.

A gold loan for business activities is a secured loan where you pledge your gold assets to avail immediate working capital to run your business effectively.

Individuals and Proprietorships above 18 years of age proof of documents supporting income generating activities are eligible for a gold business loan.

Yes, Small and Medium sized enterprises can avail of a gold loan provided they have the right set of documentation

Banks use high-security vaults that are equipped with bio-metric access controls handled by authorised personnel only. Moreover, the gold pledged for an active loan is usually covered by comprehensive insurance as well.

With SIB Gold Xpress Loan, you can get upto 85% of your gold’s current market value and a maximum loan amount of Rs. 25 lakhs. Your gold loan amount also depends on the purity of your pledged gold.

Startups can avail a Gold Loan for Business by submitting valid documents confirming income-generating activities. It is a convenient funding option for first-time entrepreneurs seeking quick capital without a long business history.

You can pay off your gold loan early with minimal or no prepayment penalties. This is a good option for business owners with fluctuating cash flows.

If you are unable to repay your gold loan on time, the lender will send reminders and provide necessary notices to clear the outstanding dues. If the repayment remains unpaid despite these notices, the pledged gold jewellery may be auctioned as per the loan terms to recover the outstanding loan amount.

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