The things that people should keep in mind while taking a gold loan are as follows:
1. To pledge ornaments owned by the customer.
2. Should not pledge ornaments of suspicious nature.
3. Should not pledge ornaments below 18 K gold.
4. Diamonds studded ornaments should not be pledged.
5. Part release of ornaments is not possible.
6. Full payment of gold loan is a must for secure release of ornaments.
1. If defaulted, the bank has the right to charge penal on overdue amount.
2. If defaulted, the bank has the right to auction the gold, subject to terms and conditions.
3. Rate of interest charges and LTV is prerogative of bank rights.