Rate of Interest for Various Jewel Loan Schemes Charged by Our Bank
Present RLLR: 9.10% to be updated as 8.85%
| Jewel Loan Schemes |
SLAB |
ROI (RLLR:- 8.35% w.e.f. 12.06.2025, MCLR:- 9.10% w.e.f. 15.01.2025) |
|
AGRI EASY JEWEL LOAN(AGEJL)
|
Maximum Up to Rs. 30 lakhs
|
One Year MCLR i.e. 9.10%
|
|
JEWEL LOAN TO OTHERS (JLOTH)
|
Maximum Up to Rs. 50 lakhs
|
RLLR - 0.10% =8.25%
|
|
SME GOLD(JLSME)
|
From Rs. 25,000/ to Rs. 50 Lacs
|
RLLR - 0.10% =8.25%
|
|
Cash Credit:- RLLR-0.10%=8.25%
|
|
IOB SWARNALAKSHMI (JLSWL - Women Borrowers)
|
Up to Rs. 5 lacs
|
RLLR - 0.15% =8.20%
|
|
KISAN CREDIT CARD JEWEL LOAN(KCCJL)
|
From 2.01 lacs to 3 lacs
|
With Interest subvention under KCC
|
7% (for prompt payment additional subvention of 3%)
|
|
Without interest subvention
|
MCLR(9.10) + 0.90% = 10.00%
|
|
Above Rs. 3 lacs to Rs. 10 lacs
|
MCLR(9.10) + 2.50 = 11.60%
|
|
IOB SWARNA SAMRIDHI(JLSWS)
|
Maximum Up to Rs. 10 lakhs
|
SIX MONTH MCLR i.e. 8.90%, Penal interest of 2% to be charged for the overdue portion
|
|
JEWEL LOAN-SUVIDHA(JLSUV)
|
Minimum Rs. 0.25 lakhs Maximum Up to Rs. 50 lakhs
|
RLLR - 0.10% =8.25%
|
|
IOB GOLD POWERED CARD(GLDPC)
|
Minimum Rs. 0. 25 lakhs Maximum Up to Rs. 25 lakhs
|
RLLR - 0.10% =8.25%
|
In accordance with the directions of the Reserve Bank of India (RBI), the Bank adopts the following transparent and uniform methodology for determining the net weight of pledged gold ornaments and for valuing the gold content for calculation of the Loan-to-Value (LTV) ratio.
1. Determination of Net Weight of Gold
Advances against gold ornaments are granted only after the ornaments are duly appraised by an authorized jewel appraiser, empanelled by the Bank based on professional expertise. The loan sanctioning authority (Branch Manager/Officers) ensures that the weight, fineness, and valuation of the ornaments are fully verified and found satisfactory before sanction.
Based upon the quality of gold brought by the borrower, the following tests are conducted, as required, to determine the purity and net gold content:
- Hallmark Verification - Jewelry items are checked for hallmarking (e.g., 24K, 22K, 18K), which serves as a certified assurance of purity. Markings on jewelry also provide a preliminary indication of karat value.
- Density & Weight Method - Used to differentiate genuine gold from spurious or impure ornaments.
- Touchstone Method - Ornaments are rubbed on a touchstone; the gloss and colour help detect impurities. Coated or fake ornaments show variation in colour.
- Acid Test - Pure gold remains unaffected by standard acid tests, while impure metals show discoloration.
- Karatmeters (XRF Analyzers) - Deployed in select high-potential branches as an additional safeguard to accurately detect spurious elements and confirm karat purity.
After the above appraisal, stones, wax, enamel, beads, and other extraneous items are removed, and only the net weight of the pure gold content is taken for valuation.
2. Price Used for Valuation of Gold Collateral
- Gold accepted as collateral security is valued based on the reference price corresponding to its purity (carat).
- For this purpose, the average closing price of gold of the respective purity over the preceding 30 days, as published by the India Bullion and Jewellers Association Ltd. (IBJA), is adopted.
- This methodology ensures a fair, transparent, and uniform valuation across all branches.
- The same benchmark is used both for fixing the lending rate and for monitoring the LTV ratio.
3. Loan-to-Value (LTV) Ratio
- The Bank adopts LTV ratios depending upon the type of gold loan scheme subject to internal & regulatory guidelines.
- The LTV ratio for each scheme is reviewed periodically by the Bank in line with its credit policy, risk management framework, and regulatory guidelines.
Formula:
LTV Ratio (%) = ((Loan Amount ÷ Market Value of Gold) × 100)
- The calculation is system-driven in the Bank's Core Banking System (CBS), ensuring uniformity, transparency, and compliance across all branches.
4. Transparency & Disclosure
- The above methodology is applied uniformly across all Bank branches.
- Any changes to RBI guidelines, valuation methods, or Bank's internal LTV policies will be updated promptly on this website.
- Customers are encouraged to note that loan eligibility and LTV ratio vary depending on the specific gold loan scheme opted for, while remaining within RBI's overall regulatory framework.