Get Instant Cash Against Gold for Personal Needs with South Indian Bank Gold Loan

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• 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 

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:

1. 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
2. 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.

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 by newspaper publications regarding the Auction and an Auction Notice, will be issued. The auction shall then proceed as per the following timelines:

• 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.