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

SanctionValuation of Gold & LTV

Documentation

Briefing About

Procedure

Need Identification

Calling Valuator

Disbursement

IMPACT ANALYSIS: RBI's GOLD LOAN REGULATION FOR NBFC’s

• 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 NBFC’s 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 Rate of Interest

Upto Rs. 1,00,000/-

4.25% above Base Rate Floating, currently 13.95% p.a.

Above Rs. 1,00,000/-

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

Loans above

Rs.25000/-

1% of the loan amount inclusive of service tax or Rs.1000/- per 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 Slab Period/s Rate of Interest

Super Loan 12 months 24% p.a.

Easy Loan 6 / 12 months 23% /24 % p.a.

Xpress Loan 9 / 12 months 21% / 24% p.a.

Real value Loan 6 / 12 months 20% / 23% p.a.

Truevalue Loan 3 /6 /12 months 15% / 18% /21% p.a.

Gold Loan Installment Scheme

6 / 9 / 12 / 15 months 14% / 14.5% / 15% / 16.75 p.a.

Gold Loan Installment Scheme

18 / 21 / 24 months 17% / 17.25% / 17.5% p.a.

Fair value Loan 3/ 6/ above 6 months 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 ratesScheme Name Time period Rate of Interest Interest Rebate      GL-C1 0 – 365 days Kerala - 23% p.a. 1% p.a. shall be provided if account settled / paid

interest before first 3 months of the tenure    Outside Kerala - 24% p.a.GL-A+ (A Plus) 0 – 90 days 22% p.a Rebate @ 2% p.a. shall be provided if account

settled / paid interest after 3 months and before 12 months  91 – 365 days 24% p.a

GL-B2 0 – 90 days 21% p.a. Rebate @ 1% p.a. shall be provided if account settled / paid interest after 3 months and before 12 months  91 – 180 days 23% p.a. (Rebate – 1% p.a.)

  181 – 365 days 24% p.a. (Rebate – 1% p.a.)         GL-A2 0 – 90 days 20% p.a.           91 – 180 days 22% p.a.

  181 – 365 days 24% p.a.         GL-D2 0 – 30 days 16% p.a.           31 – 60 days 20% p.a.   61 – 365 days 24% p.a.         GL-D1 0 – 30 days 13% p.a.           31 – 60 days 16% p.a.   61 – 365 days 24% p.a.        

COMPARISION

Basis ICICI Bank SBI BankMuthoot Finance Ltd.

Manappuram Finance Ltd.

Processing Fess

1% of sanction limit

loans <= Rs.25000 Rs. 500/application, >Rs25000 then 1% loan amount inclusive service tax or Rs.1000 whichever is high

0% 0%

Loan amount Range

Rs.10000 to 1500000

Mini Rs.5000(rural /semi urban), Rs. 10000(urban /metros) to 10 lacs

Rs.1500 to 1 Crore

Rs.1000 to Rs.1 Crore

LTV 70 to 75% 70% 60% 60%

THANK YOU..!!!