Frequently Asked Questions

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What is a Gold Loan?

It is a  loan secured against the gold ornaments/Bank coins which a customer pledges with the bank. The loan amount can be utilized for personal/business & any other non-speculative  purposes. It’s a loan which can be availed quickly and easily instead of going to Pawn broker with higher rate of interest 

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What are the ornaments/coins that I can pledge?

Only wearable gold ornaments from 18 k to 22 karat and only bank minted coins (24 Karat) up to 50 gms per customer can be funded Non funded items such as hair pins ,Cuff lings ,Gold watch, Gold strap, Gold idols, Gold utensils cannot be accepted, jewellery not more than 50% deduction, Thread mangalsutra,White gold, Diamond jewellery,Imitation jewellery,Ginni,Gold bars .

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Do I need to provide any income documents for gold loan?

Along with fulfilling the eligibility criteria, Minimal documentation is required for the gold loan to get approved. You need to show a valid ID proof , address proof with 3 latest Passport size colour photos  as the basic gold loan documentation prerequisites ITR need to be submitted if availing gold loan Rs 25 lakh and above

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Do I need to be an existing customer of the bank?

The customer need not be an existing customer of the bank.

However, we recommend that while availing the Gold Loan, customer should open a savings bank/current account facility with the bank which will enable the customer to not only enjoy banking services of the bank, but also assist them in servicing the loan conveniently.

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What are the different loan tenures available?

Bullet Scheme Tenure 12 Months (Can be renewed for more 24 Months with the same document with request letter etc.) ,Interest Payment can be Qtrly /Half Yrly and Yearly 

 

Vanilla  Scheme Tenure 36 months. No Renewal Required during the tenure with Monthly Interest. EMI Scheme Tenure ,12,24,36,48 Months OD facility is temporary withdrawn please contact Branch for further details

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How much loan amount can I avail?

Minimum Loan amount: Rs. 20,000/- Maximum Loan Amount: Rs. 25,00,000/- for NTB customer and maximum 5 loans can be availed by a single customer/Family/Group at any point of time. And for existing maximum loan amount is Rs 50 ,00,000

Loan amount Depend on valuation of Gold ornaments assayer by Valuer. Loan eligibility for the customer is 67 to 75% of valuation amount depending on repayment module  for e.g. Monthly Interest in EM/Vanilla 75 % of value of Gold where as it vary from 67 % to 72 % basing on Qtr./Half yrly interest Payment. Value of Gold is arrived by bank as per RBI norms with factoring price fluctuations as per Banks Risk Model

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Do I need a guarantor to avail this loan?

Guarantor is not required while availing Gold Loan.

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What are the different modes of disbursement?

Disbursement can happen by way of Cash, Demand Draft, Fund Transfer (to customer's existing Kotak Mahindra Bank Ltd. account), NEFT & RTGS (to customer's other bank account).

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Can I avail overdraft facility for my business needs?

Yes. Customer can avail overdraft facility which will be valid for a period of 12 months. Customer can revolve & utilize funds as per his/her requirement to the extent of limit sanctioned based on the value of gold ornaments / coins being pledged.

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Can I avail EMI facility?

Yes. Customer can avail Term Loan with EMI as repayment type for the 2 tenures of 24 & 36 months only. Customer will be required to provide Post Dated Cheques to avail such facility.

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Can I foreclose the loan earlier?

Yes. You can choose to foreclose the loan anytime after 1 & 1/2 months of availing the loan. Please refer to General Schedule of Features and Charges for Gold Loans for details.

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Which all documents do I need to provide to avail the loan?

Customer needs to provide KYC documents which include identity, address & signature proof along-with 3 passport size photographs. Existing customers of the bank need to provide only latest address & signature proof.

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Can I avail EMI facility on gold loan?

Yes You can avail the EM Facility on Gold Loan with Maximum tenure of 48 months. Loan to be repaid in equated monthly instalments with principle and interest. EMI can be pre closed only after 6 months otherwise it attracts Pre closure charges.Top Up can be given on EMI loan

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What is the rate of interest applicable on gold loan?

Interest rates are fixed and offered as on date of Loan disbursement . Interest rate starts from  11% , subject to change and at the discretion of the bank .

 

This rate is fixed by the bank, depending on the type of loan and tenure, among other factors. It is always better to know interest rate that you are paying on your loan, because it helps you plan your finances better. 

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How long does it take to process Gold Loan?

Gold loan can be sanctioned in 90 to 120 mins approx. in general from end to end ,if KYC and 3 colour photos are available. There could be delay if customer has to get KYC documents ,photos,etc.opening of  SB account may take some time if customer is New to the bank .

 

Valuation of gold will be done by empanelled assayer, who would arrive at branch on call within 15 min once pricing is arrived  for the deal. Customer has to be present till the gold packet is sealed in the presence of Assayer and branch officials .

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What is the repayment tenure of a gold loan?

Bullet Scheme Tenure 12 Months (Can be renewed for more 24 Months with the same document with request letter etc.) ,Interest Payment can be Qtrly /Half Yrly and Yearly.

 

Vanilla  Scheme Tenure 36 months No Renewal Required during the tenure with Monthly Interest. EMI Scheme Tenure ,12,24,36,48 Months. OD facility is temporary withdrawn please contact Branch for further details

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What are the additional fees that I will need to pay at the time of taking a loan?

Fees and Charges varies from scheme to scheme and loan amount .Basic charges will be applicable for gold loan will be Stamp duty charges ,processing fees and Valuer charges. 

 

Stamp duty charges will be applicable  as per respective state stamp act. Processing fee ranges from o to 1% depending upon the quantity and loan amount subject to deviation. Valuer charges range from Rs 250 to Maximum Rs 1000, depending upon the loan amount ( 2nd valuation will be done if loan amount is Rs 4 lacs and above )

 

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What is the penalty for delay in repayment of gold loan?

If any amount is defaulted penalty of 3% on over due amount will imposed.

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Is the gold pledged with banks safe?

Gold packets are kept in joint custodians of the bank similar to that of cash and other securities. Gold Packets will be handled safely and Swiftly every time by Bank Officials.

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How long does it take to sanction a gold loan?

Gold loan can be sanctioned in 90 to 120 mins approx. in general from end to end ,if KYC and 3 colour photos are available. There could be delay if customer has to get KYC documents ,photos,etc.

 

opening of SB account may take some time if customer is New to the bank .Valuation of gold will be done by empanelled assayer, who would arrive at branch on call within 15 min once pricing is arrived  for the deal. Customer has to be present till the gold packet is sealed in the presence of Assayer and branch officials .

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Are there any foreclosure charges on a gold loan?

if the loan is closed with the locking period  preclosure charges will be applicable to the extent of 2.25 % + GST.

 

Locking period is for min 6 months however negotiable depending upon need. Customer himself should visit the branch to pre close the account, after paying the foreclosure charges as applicable.

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What are the benefits of taking a gold loan with Kotak?

Kotak gold loan is 100% transparent as full process from valuation to disbursement is carried out in front of the customer.

 

Competitive  ROI and Competitive Fees and charges.Kotak gold loan provides a scheme for the tenure of 3 Years where no renewal is required every year. Opens Zero Balance SB account ,which can be converted to normal SB account anytime with certain conditions. We provide 6 % Interest on the Balance in SB account above 1 lakh.Bank would update new products at regular intervals through various modes of communication 

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How much gold loan amount can be availed at a time?

Minimum Loan amount: Rs. 20,000/- Maximum Loan Amount: Rs. 25,00,000/- for NTB customer and maximum 5 loans can be availed by a single customer/Family/Group at any point of time. 

 

And for existing maximum loan amount is Rs 50 ,00,000. Loan amount Depend on valuation of Gold ornaments assayer by Valuer. Loan eligibility for the customer is 67 to 75% of valuation amount depending on repayment module  for e.g. Monthly Interest in EM/Vanilla 75 % of value of Gold where as it vary from 67 % to 72 % basing on Qtr./Halfyrly interest Payment. Value of Gold is arrived by bank as per RBI norms with factoring price fluctuations as per Banks Risk Model

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Are all gold items accepted?

Only wearable gold ornaments from 18 k to 22 karat and only bank minted coins (24 Karat) up to 50 gms per customer can be funded.

 

Non funded items such as hair pins ,Cufflinks ,Gold watch, Gold strap, Gold idols, Gold utensils cannot be accepted, jewellery not more than 50% deduction, Thread mangalsutra,White gold, Diamond jewellery,Imitation jewellery,Ginni,Gold bars .

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What is the assurance that the gold returned is the same?

While processing the loan customer is been provided with sanction letter and Appraisal certificate where in which gold photo along with Gold ornaments details such as no. of ornaments ,gross wt. when customer visits the branch for closure of gold loan he has to carry the documents provided to him and cross verify the ornaments details based on the details mention in Appraisal certificate 

 

Gold packets are kept in joint custodians of the bank similar to that of cash and other securities. Gold packets will be handled safely and swiftly every time and by authorised officials only .

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Do I need to be an existing customer of the bank to take gold loan?

For availing  Kotak Gold Loan you need not be an Kotak customer.

 

Need to be an Indian Citizen More than 18 years and less than 75 years. CIBIL Rating should not be less than 450. I should not be a defaulter with any of the bank

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What are the different modes of disbursement for gold loan?

Disbursement can happen by way of Cash up to Rs  100000, , Fund Transfer (to customer's existing Kotak Mahindra Bank Ltd. account), NEFT & RTGS (to customer's other bank account) as an exception.

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Frequently Asked Questions

What is a Gold Loan?

It is a  loan secured against the gold ornaments/Bank coins which a customer pledges with the bank. The loan amount can be utilized for personal/business & any other non-speculative  purposes. It’s a loan which can be availed quickly and easily instead of going to Pawn broker with higher rate of interest 

.

Was this information helpful to you? Yes No

What are the ornaments/coins that I can pledge?

Only wearable gold ornaments from 18 k to 22 karat and only bank minted coins (24 Karat) up to 50 gms per customer can be funded Non funded items such as hair pins ,Cuff lings ,Gold watch, Gold strap, Gold idols, Gold utensils cannot be accepted, jewellery not more than 50% deduction, Thread mangalsutra,White gold, Diamond jewellery,Imitation jewellery,Ginni,Gold bars .

Was this information helpful to you? Yes No

Do I need to provide any income documents for gold loan?

Along with fulfilling the eligibility criteria, Minimal documentation is required for the gold loan to get approved. You need to show a valid ID proof , address proof with 3 latest Passport size colour photos  as the basic gold loan documentation prerequisites ITR need to be submitted if availing gold loan Rs 25 lakh and above

Was this information helpful to you? Yes No

Do I need to be an existing customer of the bank?

The customer need not be an existing customer of the bank.

However, we recommend that while availing the Gold Loan, customer should open a savings bank/current account facility with the bank which will enable the customer to not only enjoy banking services of the bank, but also assist them in servicing the loan conveniently.

Was this information helpful to you? Yes No

What are the different loan tenures available?

Bullet Scheme Tenure 12 Months (Can be renewed for more 24 Months with the same document with request letter etc.) ,Interest Payment can be Qtrly /Half Yrly and Yearly 

 

Vanilla  Scheme Tenure 36 months. No Renewal Required during the tenure with Monthly Interest. EMI Scheme Tenure ,12,24,36,48 Months OD facility is temporary withdrawn please contact Branch for further details

Was this information helpful to you? Yes No

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