Bank of Maharashtra (BOM) Gold Loan

Overview about Bank of Maharashtra Gold Loan

Mahabank offers the gold loan scheme called Maha Gold Loan which is offered to borrowers in order to meet their personal financial requirements such as payment of tuition fees, marriage, medical needs, travel for business purposes, etc.

Features of Bank of Maharashtra Gold Loan Scheme

Repayment Tenure

The maximum repayment tenure for this gold loan scheme is 12 months.

Maximum Loan Amount

The maximum loan amount that you can avail from Mahabank under this scheme, is Rs. 5, 00,000. This is determined based on the fact that LTV ratio and scale of finance is not more than 75% of the loan amount during the loan tenure.

Minimum Loan Amount

The minimum loan amount that a borrower will receive against the gold he/she has pledged with the Bank is Rs. 20,000/-.

Scale of Finance

The borrower is eligible for a loan amount of Rs. 1950 per gram for ornaments made of 22 carat gold or the loan amount will be equal to 75% of the market value of the gold ornament (excluding the weight of stones attached to the ornaments, if any), whichever is the least.

Collateral/ Security

The collateral/ security that is to be placed for availing this gold loan scheme is the gold jewellery itself.

Type of Gold

All gold ornaments are accepted by the Bank. The Bank does not provide gold loan for primary gold or bullion.

Repayment option

Under the term loan facility, the principal can be repaid within a loan tenure nit exceeding 12 months and interest is charged on a monthly basis. Repayment under this facility can also be scheduled to bullet payments.

Under the cash credit facility, the entire loan amount has to be repaid once in the year and is subject to an annual review. The interest payment under this facility is charged on a monthly basis and is revised as required by the Bank.

Processing Fee

A processing fee of Rs. 500 is applicable per gold loan application.

Eligibility criteria for Bank of Maharashtra Gold Loan

Anyone can avail the gold loan against their gold ornaments/ jewellery, if they fall within the age limit set the Bank. The applicant should be at least 18 years old and not more than 70 years old in order to avail loan against gold from Mahabank.