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Gold loan 

Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant. It is true that Gold loans, like personal loans or credit card borrowings, are often used for short term household requirements.

1. Who is eligible to avail Gold loans? What security has to be provided?  Anyone who owns gold ornaments can avail the loan. (Note: minors are not eligible.) To obtain the loan you need to submit your gold jewellery (within a karat range of 18 to 24 k) at the branch. The loan amount that is sanctioned will be based on the gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.

2. What are the documents required for taking loan against gold ornaments? Are there any end-use restrictions involved? We need one document of identity proof (such as ration card, driving licence, PAN Card, Voter ID card, passport etc.) and one document of residential proof. There are no end-use restrictions in gold loans.

3. What is the rate of interest charged on such loans? Rate of interest is 12 percent.

4. What is the tenor of such loans?  Gold loan products have a maximum tenor of one year.

5. How long will it take for me to get my gold loan?  Once you submit your application form and supporting documents, we shall give approval within a matter of minutes provided everything is in order.

6. Are the pledged gold ornaments safe and secure with Manappuram?  Gold ornaments accepted as pledge by the customers are stored in strong cash safes inside a strong room built to the standards and specifications applicable to commercial banks. The pledged gold ornaments are insured for full value. Moreover, security personnel and electronic surveillance technology are deployed to protect the gold.

7. How do I repay my Gold loan?   You repay the loan at the end of the loan tenure. You do not have to go through hassle of servicing EMIs every month. However, interest has to be serviced periodically, as per the terms of sanction. Repayments can be made in cash, by cheque or DD. 

8. Is there any maximum and minimum limit for availing Gold Loan? What about the tenure of the loan, lock-in period, and prepayment penalties?   Gold loans may be availed for any amount between Rs.1,000 to a maximum of Rs.1.00 crore. Loans are available for periods ranging from one month to one year. Our Gold loans do not have any lock- in-period and there are no prepayment penalties should you choose to repay earlier than scheduled.

9. Whether partial payments of loan and interest are accepted? Customers are free to repay part amount of loan and/or accrued interest thereon at anytime in order to reduce the interest burden on the loans. Interest is calculated on daily product basis on the amount of loan outstanding at the end of the day.

10. What happens if the loan amount is not repaid on the due date?  In case loan amount is not repaid on or before the due date, penal rate of interest is charged on the loan amount.

11. In case of default, when will the gold jewellery be auctioned off?  In case of persisting overdue, the ornaments will be auctioned off but only after giving sufficient notice to the borrower.

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