Uttar Bihar Gramin Bank gold loan

Uttar Bihar Gramin Bank Gold Loan

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Need cash fast without selling your gold? Uttar Bihar Gramin Bank (UBGB) offers two straightforward gold-backed options—one for personal needs and another tailored to farmers. Both are quick to sanction, paperwork-light, and let you prepay anytime without penalty. Here’s a clear, human-friendly guide so you can pick the right fit in minutes.

Two simple choices at a glance

  • Gold Loan – Personal: For weddings, education, medical expenses, travel, or any non-agricultural need.
  • Gold Loan – Agriculture (incl. KCC variants): For crop production and allied activities—seed, fertilizer, feed, medicines, repairs, and more.

Currently available in these districts: Darbhanga, Muzaffarpur, Gopalganj, Purnea, Siwan (more to be added).

Gold Loan – Personal

Purpose

A fast, secured loan against your gold ornaments or bank-sold gold coins to cover urgent personal expenses—without dipping into long-term savings or selling assets.

Eligibility

  • Age: 18 years and above.
  • Basic KYC and acceptable gold security; the branch will guide you on specifics.

Loan amount

  • ₹10,000 to ₹20,00,000, based on per-gram value assessed by the bank and the required margin. The exact eligibility depends on purity/weight and the day’s valuation norms.

Facility type

  • Demand loan—a single, straightforward disbursal designed for short-term needs.

Margin

  • 30% (your gold value must comfortably cover the loan + margin).

Repayment

  • Up to 12 months (close earlier if you wish—no charge).

Security

  • Gold ornaments or bank-sold gold coins up to 50 grams (as security/pledge kept by the bank in safe custody).

Prepayment

  • No prepayment charges. Repay in part or full whenever you like to save interest.

Interest rate (Personal)

  • 12.00% p.a. (subject to change as per bank policy).

Gold Loan – Agriculture

Purpose

Working capital and investment credit for crop production and allied activities (e.g., inputs, feed, medicines, repairs, seasonal costs), backed by your gold. Ideal when timing is everything and you expect cash inflows after harvest/marketing.

Eligibility

  • 18 years and above, engaged in agriculture or allied activities.
  • Standard KYC and acceptable gold security.

Loan amount

  • Up to ₹20,00,000, linked to per-gram gold value and margin.

Facility types you can choose

  • Demand Loan, Cash Credit (CC), Overdraft (OD), or Term Loan—pick what matches your cash-flow pattern.
    • CC/OD suits seasonal inflows and lets you draw, repay, and redraw within limits.
    • Term Loan suits planned investments with clear repayment timelines.

Margin

  • 30% for CC or loans up to 1 year
  • 40% for term loans or loans beyond 1 year

Repayment

  • CC/OD: Up to 5 years (aligned with KCC norms)
  • Demand Loan: Up to 18 months
  • Term Loan: Up to 5 years

Security

  • Gold ornaments or bank-sold gold coins up to 50 grams (pledged). The bank values and stores them securely.

Prepayment

  • No prepayment charges.

Interest rate (Agriculture)

  • Gold Loan Agriculture (other than KCC): 11.00% p.a.
  • Gold Loan Agriculture (KCC) – Regular:
    • Up to ₹3,00,000: 7.00% p.a.
    • Above ₹3,00,000: 12.00% p.a.
  • Gold Loan Agriculture (KCC) – Overdue:
    • Up to ₹3,00,000: 12.00% p.a.
    • Above ₹3,00,000: 13.00% p.a.

Tip: If you expect to repay soon after harvest, a CC/OD structure often keeps interest costs lean because you pay interest only on what you actually use.

TDS, charges, and where it’s available

  • TDS: Interest on loans isn’t subject to TDS; you simply pay interest as per sanction terms. (Your tax adviser can guide you on personal tax implications, if any.)
  • Processing/other charges: The branch will share the latest schedule (if applicable).
  • Service area: Darbhanga, Muzaffarpur, Gopalganj, Purnea, Siwan for now.

Why borrowers choose UBGB Gold Loans

  • Speed & simplicity: Gold is easy to value, so sanctions are quick.
  • Zero prepayment penalty: Close early and save interest.
  • Predictable pricing: Clear published rates for personal and farm variants.
  • Right-sized options: Demand loan for one-time needs, CC/OD for seasonal cycles, term loans for planned investments.
  • Safe custody: Your pledged gold is stored securely by the bank.

What to carry (documents checklist)

  • KYC: PAN (or Form 60/61), valid photo ID, address proof, recent photographs.
  • For Agriculture: Proof of agricultural or allied activity (as requested by the branch).
  • Your gold: Ornaments/eligible bank-sold coins for valuation and pledge (coins capped at 50 grams).
  • Any existing loan details if the bank requests them for assessment.

Carrying originals plus photocopies speeds up processing.

How to pick the right variant

  • Short personal need (≤12 months) and a single cash requirement? Choose Gold Loan – Personal (Demand Loan).
  • Seasonal farm expenses with inflows after sale? Agriculture CC/OD helps you draw and repay flexibly.
  • Planned farm investment (equipment, structured improvements)? Consider an Agriculture Term Loan for up to 5 years.

Smart ways to save more

  • Borrow only what you need. You’ll reduce interest outgo immediately.
  • Repay early when cash comes in. No penalty—every earlier rupee saves interest.
  • Match tenure to cash flow. If harvest income arrives in 6–9 months, don’t take a 18-month loan unless you need the cushion.
  • Keep your pledge neat. Submit clean, well-documented ornaments; valuation is smoother and faster.

Quick FAQs

How is eligibility decided?
By the value and purity of your gold, minus the required margin (30% for personal; 30%/40% in agri depending on tenure/type), plus standard KYC checks.

Can I part-pay instead of full closure?
Yes. Part-prepayment is allowed with no charges.

Are coins allowed?
Yes—bank-sold gold coins only, up to 50 grams.

What if I need more time?
Discuss with the branch well before due date; restructuring is subject to policy. For agriculture, CC/OD lines can run up to 5 years (as per norms).

Is collateral other than gold required?
No additional collateral is generally required; your pledged gold is the security.

Bottom line: Whether it’s a one-off personal need or a seasonal farm cycle, UBGB Gold Loans give you fast access to funds at transparent rates, with no prepayment penalty and multiple structures to fit real-world cash flows. If you’re in Darbhanga, Muzaffarpur, Gopalganj, Purnea, or Siwan, walk into your nearest branch with your gold and KYC—you could have a clean, affordable solution in one visit.

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