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Agri & Rural

Last Updated on: 04/03/2024


Sr. No. Category Description


Scheme Name

Jewel Loan Suvidha



A non-speculative loan scheme for individuals against security of gold ornaments
& specially minted gold coins sold by Banks for undernoted requirements:

✔ Margin money requirement in housing loan

✔ Registration charges of house property

✔ Project price escalation

✔ Reimbursement within a period of 12 months from the date of expenses
incurred by the customer for the purposes as mentioned above on submission of relevant proofs.


Target Group

Any individual above the age of 18 owning gold ornaments/jewellery/coins and having housing
loan account with us either singly or jointly (both existing & new) or with any bank/FI

✔ Maximum Exit Age: No age restriction

✔ Individuals with steady source of income including pensioners

✔ The borrower's account is KYC compliant.


Nature of Facility

✔ Demand Loan - Rs. 0.25 lakhs to Rs. 15.00 lakhs

  • Term Loan - Rs. 0.25 lakhs to Rs. 50.00 lakhs



✔ Only Housing Loan Borrowers of our Bank
(existing & new) and other bank/FI are eligible

✔ Individuals with steady source of income through Salary/Business including
Bank's employees and pensioners. However, submission of proof of income by the borrower is not mandatory for loan up to Rs. 15.00 lakhs (Bullet Payment).

✔ The borrower's account is KYC compliant.


Quantum of Loan

Minimum: Rs. 25,000/-


✔ Bullet Payment: Rs.15,00,000/-

✔ EMI Option: Rs. 50,00,000/-

The quantum of loan should not exceed the purpose for which it is availed..



The loan shall be secured by minimum 18 carat gold
jewellery/ornaments/specially minted coins purchased from

banks (restricted to 50 Grams per borrower).



The per gram rate advised by jewel loan cell, ARID is inclusive of margin.
No further margin to be deducted from the net weight of the gold pledged.


Assessment of Eligible Amount

The amount of loan is decided, based on requirement of loan by the customer and the value Gold less prescribed margin & minimum LTV stipulation.

In addition to the above, borrower should have the minimum capacity to service the EMI (as applicable) for Jewel Loan -Suvidha EMI Option.


Prescribed LTV

Loan amount should not exceed 75 per cent of the value of gold ornaments and jewellery.

If the LTV ratio goes beyond 75%, the excess amount to be recovered immediately.

LTV of 75% is to be maintained throughout the tenure of the loan.


Repayment Options



Bullet Payment

12 Months


60 Months


Rate of Interest

RLLR + 0.00% i.e.,9.35 % at Present


Repayment Mode

Jewel Loan Suvidha - Bullet Payment:
where repayment of loan is permitted by way of bullet repayment during the loan period/end of the term i.e., there is no repayment obligation during loan term.

Maximum Loan

Rs. 15 lakhs



Period of Loan

12 Months

Repayment Mode

Bullet Repayment of Interest & Principal at the time of

closure/end of the term. Interest will be charged in the account at monthly rest but will become due for payment along with

principal only on maturity

Jewel Loan-Suvidha - EMI Option:
where principal together with interest is repayable in Equated Monthly Instalments (EMIs)

Loan Amount

Rs. 0.25 lakhs to Rs. 50.00 lakhs



Period of Loan

60 Months

Repayment Mode

Repayment schedule will be Equated Monthly Installment commencing

from subsequent month of disbursement of loan


Processing Charges

0.25% of the sanctioned limit subject to minimum Rs. 500 +GST and maximum of Rs. 2500/- +GST.


Discretionary Powers

As per Discretionary Power fixed for the sanctioning authorities by the bank for Jewel Loan (Others) Scheme


Pre-closure Charges



Documents & End Use Verification

✔ Margin Money requirement in Housing loan: Margin Money requirement as per the Home Loan sanction letter

✔ Registration charges of House Property: Estimate of stamp Duty

✔ Project price escalation (any of the below mentioned documents)

1. Estimate from empaneled valuer in case of construction

2. Letter from Builder in case of flat



As per bank's extant guidelines



Form 89E & Declaration as per Annexure  -  (Click here)


Additional Features

A. Loan for Margin money requirement in housing loan

✔ All projects under construction or completed

✔ Amount of margin money requirement to be derived from the loan
amount mentioned in Housing Loan Sanction letter

B. Registration charges of house property

✔ All projects due for registration of sale deed

C. Project Price Escalation

✔ During the period of construction and/or till registration of sale deed

D. Reimbursement

✔ Reimbursement within a period of 12 months from the date of expenses incurred by
the customer for the purposes as mentioned above on submission of relevant proofs


Income Tax Benefit

A. Section 24(b)

Deduction under Section 24(b)on account of interest on borrowed capital.

B. Section 80C

loan taken to financing the construction or purchase of house or tomeet
expenses toward home improvement are eligible for tax deduction up to Rs 1.5 lakhs on principal payment

The income tax benefit for loans taken under bullet payment option will be
eligible only for the year it is availed for the specified purpose.

The benefits are applicable subject to fulfilment of the other conditions
prescribed under the respective sections of Income Tax Act' 1960.