Vijaya Bank Gold Loan and Bank of Baroda (BOB) Gold Loan is up to Rs. 25 lakhs. The jewel loan is available for the purpose of agriculture and allied activities, other priority, and non-priority sectors. The tenure of the loan is for up to a year. And the interest rate is based on MCLR as well as the end-use of funds. Gold jewellery and bank-sold coins are acceptable as collateral. Apart from identity proof, address proof, passport-size photographs, duly filled and signed application form, the borrower has to submit proof of agriculture activity.

NOTE: Vijaya Bank was amalgamated with Bank of Baroda with effect from 1 April 2019. The post below contains information about erstwhile and current loans against gold schemes. You will also learn about the gold loan features, eligibility criteria, interest rates, and FAQs.

Features of Vijaya Bank Gold Loan (Erstwhile Scheme)

• The bank offers a loan based on the daily prices of gold quoted by the bank and can be availed by individuals of all income groups.
• In the cash credit scheme, the borrowers can pledge their gold jewellery and get credit as operative cash credit.
• The online jewel scheme is for individuals to meet all types of personal cash requirements, for business, education, and housing.
• For customers who can get loans against jewels security under “Operative Cash Credit Facility”. You can withdraw the funds or get the same credited within a specified limit.
• Customers can avail of loans, with a choice between an operative limit or a fixed-term loan.
• The repayment tenure for borrowers is for 12 months or a 2-year operative limit.

Features of Current Bank of Baroda/Vijaya Bank Retail Gold Loan

Vijaya Bank or Bank of Baroda Gold Loan Retail features:

• This is a retail gold loan with a demand loan and cash credit facility.
• The purpose is for the priority sector, agriculture, and allied activities.
• The maximum loan amount is up to Rs. 25 lakhs.
• Tenure is up to 12 months.
• Loan to value ratio (LTV) is up to 75%. But in the pandemic time, the LTV may extend up to 90% of the pledged asset’s current market value.

Vijaya Bank/BOB Gold Loan Eligibility Criteria

Here are the eligibility norms:

• The applicant has to be a resident Indian.
• He/she must be the owner of the pledged gold jewellery or the specially minted bank-purchased gold coins.
• The weight of the coins is acceptable up to 50 grams per individual

BOB/Vijaya Bank Gold Loan Interest Rate

Here is the Vijaya Bank/Bank of Baroda Gold Loan Interest Rate:

• The interest rate for agricultural purposes is 1-year MCLR for a loan up to Rs. 3 lakhs.
• For loans over Rs. 3 lakhs and up to Rs. 10 lakhs, the interest is 1-year MCLR + S.P.
• The interest rate for other priority sectors is 1-year MCLR + S.P for a loan up to Rs. 3 lakhs.
• For loans over Rs. 3 lakhs and up to Rs. 10 lakhs for other priority sectors, the interest rate is 1-year MCLR + S.P + 0.25%.
• For agriculture loans over Rs. 10 lakhs and up to Rs. 25 lakhs, 1-year MCLR + S.P + 0.25% applies.
• For the same loan amount limit for other priority/non-priority sectors, the interest applicable is 1-year MCLR + S.P + 0.50%.
• The erstwhile Vijaya Bank gold loan interest rate varies between 11% and 17% p.a. and is subject to frequent revisions depending on various factors.