BGVB Gold Loan

The Gold Loan Scheme was in existence in the erstwhile Gramin Banks before amalgamation and before formation of Bangiya Gramin Vikash Bank in 2007. However, post amalgamation the scheme was never revisited or introduced in line with the amalgamating Banks. Gold ornaments and jewellery are regarded as most valuable property in the hands of Indian household for its inherent liquidity and price. Over the period of time India vis-à-vis world economy has regarded the Gold as the most precious metal having the underlying feature of price appreciation. The economy has also witnessed the paradigm shift in price of the metal over the period of time.

It has been observed that rural populace in order to meet their short term liquidity crunch often pledge gold ornaments, however, not through institutional finance rather through Mahajan comparatively in higher rate of interest. This has resulted in debt trap and losing of precious metal in the hands of few disrupting the normal flow of credit. Therefore Gold Loan Scheme has inherent quality of evenly distribution of credit in the hands of needy to meet their short term obligation towards Agricultural activity and consumption purpose. The social aspect of extending loans pledging gold ornaments in a secured and organized manner through institutional credit is robust and the bank has huge potential in this segment during the ensuing Kharif season and upcoming festive season.


1. Agricultural purpose:

  • Bullet Repayment: Max ₹2 lakh
  • Half yearly Repayment: Max ₹10 lakh

2. Non-Agricultural purpose:

Minimum: ₹0.25 lakh

  • Bullet Repayment: Max ₹2 lakh
  • EMI based repayment: Max ₹25 lakh