BGVB Gold Loan

Application cum Loan Agreement (Proforma Enclosed) as per Annexure-iii (Revised).*

*Since interest rates are now linked to MCLR, interest clause for bullet repayment I payment of interest on monthly basis be amended accordingly.

All branches are advised to obtain the undertaking at pre sanction stage in each case of advance against Gold Jewellery I Ornaments.

Weighing and valuation of gold ornaments is to be done by the assayer at the branch premises in the presence of Branch Manager I Officer and the Borrower concerned. Jewellery must be tested by and approved by assayer. When appraising the gold ornaments I jewellery the stones and wax contained in the jewellery should not be taken into account. The Assayer should record and weigh different items of security separately, determine the pure gold content and issue a certificate in prescribed format as per Annexure -iv (Revised) of the Bank recording the genuineness and value of security and correctness of weights recorded. A copy of the same may be given to the borrower.

Jewellery along with a list relating to each loan is to be kept in a separate pouch or cloth bag. The pouch is to be properly and securely sealed with the metallic insignia to be supplied to the respective Branch.

A tag should be attached furnishing the particulars such as Account Number, Ledger Folio, and Name of the Account, No. of Demand Pronote, No. of articles, gross weight etc. with the signature of the Branch Manager I Officer-in-charge & Borrower in Annexure - VI (Revised).

The detail of items of jewellery should be recorded in the format of Gold Loan pledge & Redemption Register as per Annexure-V. Borrower should sign in the appropriate column in register to confirm the correctness of the detail while releasing the Gold ornaments.