• Capital Local Area Bank Loan Against Gold

    Capital Local Area Bank Ltd. is the largest Local Area Bank in India and it has completed 15 years of operations as on 15th January, 2015. It had been operating in Jalandhar, Kapurthala and Hoshiapur in Punjab for the initial 13 years. RBI accorded the approval for expansion in January, 2013 and now the bank has its operations in Ludhiana and Amritsar in Punjab.

    The main aim is to bring modern banking facilities to the rural areas at a lower cost. It aims to make the services of a bank accessible for the common man. It offers safe, efficient and servicer oriented repository of savings to the local community. This reduces the dependency on money lender and making credit easily available.

    The total business of Capital Local Area Bank has crossed Rs.2,760 crores and the bank has 42 branches. Out of the 42 branches, 20 are in rural areas, 16 are in semi-urban areas, 4 in urban areas and 2 in metropolitan. 80% of the business is in rural and semi-urban areas. In a short span the bank branches have managed to become the largest branches at their respective centres.

    Most Indians invest in a lot of gold and it just sits idle at home. With Capital Local Area Bank loan against gold, you can tap into the potential of the gold assets that is lying idle. You can avail hassle free loan against your gold. The advance can be used to invest in agricultural and allied activities. You can use the advance to meet the medical, education and marriage expenses and to meet the requirement of unforeseen events.

    Purpose of Capital Local Area Bank Loan against Gold

    The purpose of loan against gold offered by Capital Local Area Bank is to make the funds available for consumption or domestic or medical purposes. The advance can however not be used for speculative purposes.

    Eligibility criteria for availing gold loan scheme

    Only individuals can apply for Capital Local Area Bank Loan against Gold scheme.

    Features and benefits of Capital Local Area Bank Loan against Gold

    The features of loan against gold from Capital Local Area Bank are as follows:

    • If you are taking a term loan, the maximum loan offered is Rs.10 lakh and it is subject to a maximum of 70% of the valuation of the gold as per the approved valuer.
    • If you are taking an overdraft facility, then the maximum loan amount is Rs.5 lakh subject to the repayment capacity.
    • Margin is set at 30% of the security for term loan and 40% for the overdraft facility.
    • The security offered is the pledge of the gold that is duly valued by an approved valuer.
    • Third party guarantee is required.
    • The interest rate offered is:


      Average rate of interest

      Minimum rate of interest

      Maximum rate of interest

      Loan against property

      14.16% per annum

      12.5% per annum

      14.75% per annum

    Note: The interest rates can be changed at the discretion of the bank. Please check the interest rate at the branch before applying for loan against gold.

    Documents required for Capital Local Area Bank Loan against Gold

    While applying for the Loan against Gold from Capital Local Area Bank, you will have to submit the following documents:

    • Income proof
    • Identity proof such as driving license, PAN card, Passport, Aadhaar Card
    • Residential proof Voter ID, Passport, DL, etc.
    • Other documents as expressed under the scheme.

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