Presented by Virbahadur Singh (100) Khushbu Sharma (88)

INTRODUCTION

What is Gold Loan?

The loan given against gold

Provided by Financial institutes

To meet short term requirements

ADVANTAGES

Does not demand any income certificate

Minimum documentation
Low interest rates

Agriculture loans against gold

Most simple and convenient

Very less processing time

CHARGES ASSOCIATED WITH GOLD LOAN

Loan processing charge

Valuation charge
Late payment penalty

Pre-payment penalty

ADVISE ON GOLD LOAN

Go for gold loan only if you are confident Compare the benefits provided Best option for short term requirements

DOCUMENTS REQUIRED

Identity proof

Address proof
Signature proof

2 passport size photographs

PROCEDURE OF GOLD LOAN

Customer Approach Need Identification

Briefing About Procedure

Disbursement

Documentatio n

Sanction

Valuation of Gold & LTV

Calling Valuator

IMPACT ANALYSIS: RBI's GOLD LOAN REGULATION FOR NBFCs

RBI has come up with a norm for NBFCs that does not allow them to offer a loan above 60% of the value of gold.

Why NBFCs Only ? Why not banks ?

GOLD LOAN AT ICICI BANK LTD

Hassle-free quick processing of loans Simplified paperwork Easy payment options Attractive interest rate & LTV. Loan amount ranging from Rs. 10,000 to Rs.15,00,000

CONTD

Eligibility criteria Ineligible Documentation Sanction Disbursement

CONTD.

Rates & Processing Fees

GOLD LOAN AT SBI BANK

Eligibility Loan amount Repayment period Security

Documents required in SBI

Application for Gold Loans

Two copies of photograph of the borrower(s) Gold Ornaments Witness Letter in case of illiterate borrowers

CONTD

Interest Rate Base Rate 9.70 % w.e.f. 04.02.2013 Size of Credit Limit Upto Rs. 1,00,000/Above Rs. 1,00,000/-

Rate of Interest 4.25% above Base Rate Floating, currently 13.95% p.a. 4.75% above Base Rate Floating, currently 14.45% p.a.

CONTD

Processing fees Processing Fees Loans up to Rs.25000/-

Rs.500/- per application

1% of the loan amount inclusive Loans above of service tax or Rs.1000/- per Rs.25000/- application whichever is higher

MUTHOOT FINANCE GOLD LOAN

Features and Benefits: Loan disbursal Loans starts from Rs. 1,500 to 1 Crore Minimal documentation In-house evaluation of Gold 0% Processing fees Pre-payment option- Without any penalty

CONTD

Gold loan products of Muthoot Finance

Scheme Super Loan Easy Loan Xpress Loan Real value Loan Truevalue Loan Gold Loan Installment Scheme Gold Loan Installment Scheme Fair value Loan Slab Period/s 12 months 6 / 12 months 9 / 12 months 6 / 12 months 3 /6 /12 months 6 / 9 / 12 / 15 months 18 / 21 / 24 months 3/ 6/ above 6 months Rate of Interest 24% p.a. 23% /24 % p.a. 21% / 24% p.a. 20% / 23% p.a. 15% / 18% /21% p.a. 14% / 14.5% / 15% / 16.75 p.a. 17% / 17.25% / 17.5% p.a. 17% p.a./ 20% p.a. / 24% p.a.

Muthoot finance gold loan procedure

Step 1: Submission of application form with gold assets Step 2: Analysis and LTV Step 3: Sanctioned Step 4: Disbursement

MANAPPURAM FINANCE GOLD LOAN

Highlights of Gold Loan Fast process. Minimum documents Requirement Interest rate. Different schemes for different needs, to suit all income groups. No processing fee.

CONTD

Gold loan product and Interest rates

Rate of Interest Kerala - 23% p.a. Outside Kerala - 24% p.a. 22% p.a Rebate @ 2% p.a. shall be provided if account settled / paid interest after 3 months and before 12 months Interest Rebate 1% p.a. shall be provided if account settled / paid interest before first 3 months of the tenure

Scheme Name Time period GL-C1 0 365 days GL-A+ (A Plus)

0 90 days

GL-B2

91 365 days 24% p.a 0 90 days 21% p.a.

Rebate @ 1% p.a. shall be provided if account settled / 91 180 days 23% p.a. (Rebate 1% p.a.) paid interest after 3 months and before 12 months 181 365 days 24% p.a. (Rebate 1% p.a.) 0 90 days 20% p.a. 91 180 days 22% p.a. 181 365 days 0 30 days 31 60 days 61 365 days 0 30 days 31 60 days 61 365 days 24% p.a. 16% p.a. 20% p.a. 24% p.a. 13% p.a. 16% p.a. 24% p.a.

GL-A2

GL-D2

GL-D1

COMPARISION
Basis SBI Bank loans <= Rs.25000 Rs. 500/application, >Rs25000 then 1% 1% of sanction limit 0% 0% loan amount inclusive Processin service tax or Rs.1000 g Fess whichever is high Mini Rs.5000(rural Loan /semi urban), Rs. Rs.10000 to amount 10000(urban /metros) Rs.1500 to 1 Rs.1000 to Rs.1 1500000 Range to 10 lacs Crore Crore
LTV 70 to 75% 70% 60% 60%

ICICI Bank

Muthoot Manappuram Finance Ltd. Finance Ltd.

THANK YOU..!!!