Corporation Bank Gold Loan 2024
Corporation Bank Gold Loan offers funds up to Rs. 3 lakhs or Rs. 25 lakhs (Union Bank of India). The tenure is up to 24 months at the lowest interest of 10.15%. The bank has a loan against the gold scheme for salaried individuals, self-employed professionals, businessmen, pensioners, and other eligible entities. It has a swift and transparent system in place to approve the loan. So, borrowers can expect a hassle-free credit of funds to their registered bank amount.
NOTE: From 1 April 2020, Corporation Bank has been merged with Union Bank of India. So, for the updated scheme for a gold loan and interest rate details, visit the official website of the Union Bank of India.
In this post, we will discuss Corporation Bank Gold Loan features, terms and conditions, eligibility criteria, interest rate, type of schemes, and frequently asked questions.
Features of Corporation Bank Gold Loan
The below mentioned financial requirement can be fulfilled with Gold loan Corporation Bank:
- While Corporation Bank allowed up to Rs. 3 lakhs as loan. But the Union Bank of India offers up to Rs. 25 lakhs for the non-priority sector and up to Rs. 20 lakhs for priority sector and agriculture.
- The tenure offered by the bank is up to 12 months. But, the Union Bank of India provides tenure up to 18 months.
- Acceptable gold purity is 18 to 22 Carat. The gold weight for coins accepted is up to 50 grams per borrower.
- The Union Bank of India/Corporation Bank offers loans against gold to arrange funds to create assets, meet expenses for crop production, or related activities such as fisheries, dairy, poultry, etc.
- It also provides loans for unforeseen situations, emergencies such as ceremonies, education, marriage, medical treatment, and more.
- After the amalgamation of banks, one can also apply for a working capital gold loan for business needs such as expansion, purchase of inventory, staffing, renovation, and more.
Types of Corporation Bank Gold Loan
Corporation Bank offers three different variants of gold loan for the benefit of borrowers.
- Agriculture Jewel Loan (ACADL / ACAOD)Under this type, borrowers can pledge their gold jewellery to get a suitable loan amount which they can use towards agricultural purposes. This loan amount can be used as short term crop loan and can be used to purchase any farm asset.
- Pledge of Gold JewelleryUnder this scheme, customers can pledge their gold jewellery as security and use the loan amount to meet personal and business fund requirements.
- Jewel Loans other than Agriculture (CADL / CAOD)Borrowers can place their gold jewellery as security to avail a loan which they can use for a range of purposes like housing, education and personal expenses.
Corporation Bank Gold Loan Benefits:
Given below are some of the advantages of a Corporation Bank Corp Gold Loan.
- Corporation Bank Corp Gold Loan is a versatile credit product. Customers can avail this loan to meet the costs of education. Housing, business requirements or personal expenses.
- The rate of interest for Corporation Bank Corp Gold Loan is very nominal and affordable.
- Corporation Bank offers flexible repayment tenures for Corp Gold Loan Scheme.
- The documentation required is very simple and the entire sanction process is transparent and hassle – free.
Corporation Bank Gold Loan Scheme Interest Rates
The interest rates for Corporation Bank Corp Gold Loan schemes are outlined below.
| Gold Loan Scheme | Rate of Interest |
|---|---|
| Agriculture Jewel Loan | Tenure up to 12 months – 10. 60 per cent per annumFor tenure above 12 months and up to 24 months – 11. 10 per cent per annumJewel Loan towards short term crop production – 7 per cent per annum |
| Loan by pledging gold jewellery | Linked to base rate, 10. 65 per cent per annum at present. |
| Jewel Loans for purposes other than agricultural requirements | Loan amount up to Rs. 2 lakhs – 11. 60 per cent per annumLoan amount exceeding Rs. 2 lakhs – 12. 60 per cent per annum |
Corporation Bank Gold Loan Eligibility
The eligibility conditions to apply for a Corporation Bank Corp Gold Loan is described below.
- Individuals involved in activities like small business, retail trade, small manufacturing units can apply for Corporation Bank Corp Gold Loan. Also, agriculturists, self-employed individuals and professionals can apply for a Corporation Bank Corp Gold Loan.
- Salaried individuals and pensioners can apply for a Corporation Bank Corp Gold Loan.
Corporation Bank Gold Loan Documentation Required:
Given below are the documents that a customer must submit at the time of application.
- Completely filled application form
- Recent passport size photographs
- Address Proof documents (any one of the following)
- Passport
- Driving License
- Aadhaar Card
- Voter ID Card
- Ration Card
- Identity Proof documents (any one of the following)
- PAN Card
- Passport
- Aadhar Card
- Voter ID
- Driving License
Terms and Conditions for Gold Loan
Here are a few important rules to a loan against gold:
- The bank does not offer the jewel loan to jewellery shop owners, jewellers, and pawnbrokers.
- Apart from KYC documents, the bank may ask for additional documents for an agriculture gold loan. These include hypothecation of crop/gold asset, appropriate DPN note, Letter of continuity, Undertaking from the borrower/guarantor, gold loan pledge form, letter of general lien and setoff, credit report if necessary.
- The loan to value ratio is up to 75% of the gold’s market value. The fund approved is based on the purpose of the loan and the fineness of the asset.
- For an Agri gold loan, the finance is determined based on the crop production requirement or actual need.
- The tenure for agriculture and demand loans is decided on the anticipated harvesting time, income generation, or marketing period of the crop.
- The tenure for non-agriculture and term loan depends on the purpose of the loan, income generation from the crop production, marketing/harvesting season, etc. The period is up to 12 months.
Corporation Bank Gold Loan Scheme FAQs
What is the quantum of loan offered per gram of gold, under Corporation Bank Corp Gold Loan?
- Repayment Period Loan per gram of gold
- Not more than 12 months Rs. 2000 per gram, on 24 carat basis
- More than 12 months Rs. 1900 per gram, on 24 carat basis
What is the maximum repayment tenure offered for Corporation Bank Corp Gold Loan?
A maximum repayment tenure of 24 months is offered for Corporation Bank Corp Gold Loan.
What are the conditions associated with agriculture jewel loan for short term crop production under Corporation Bank Corp Gold Loan?
Agriculture Jewel Loan will be sanctioned to meet the financial requirements of short term crop production after the borrower places suitable gold jewellery as security. A loan amount not exceeding Rs. 3 lakhs will be offered and the amount has to be repaid within a period of 12 months.
What are the processing charges for Corporation Bank Gold Loan less than Rs. 2 lakh?
No processing charges will be levied for gold loans up to Rs. 2 lakhs. For loans less than Rs. 2 lakh, a nominal processing charge would be levied by Corporation Bank.
I am a pensioner. Can I avail Corporation Bank Corp Gold Loan?
Yes, Corporation Bank Corp Gold Loan can be availed by pensioners also.