1. Interest shall be payable at the rate specified as above along with incidental charge as may be fixed by the Company from time to time. When interest is not paid at monthly intervals the interest shall be compounded as mentioned above. Interest will be calculated on the basis of 360 days a year on the amount outstanding. If the loan is not repaid on demand within one year the Company shall have the right to levy overdue interest @ 3% pa after one year on the amount of loan plus interest in default. Interest will be payable from the date of the loan till the account is closed, both days inclusive.
2. The loan is based on the weight, purity of the Gold and adjusted market value. A higher LTV (loan per gram) is assessed by the Company as a greater risk as compared to lower LTV because of which higher LTV loan attracts a higher rate of interest.
3. The period of loan is one year and the Borrower is required to repay the loan along with interest on or before one year from the date of disbursement. However, the Borrower shall have the option to foreclose the loan at any time during the currency of the loan by paying the principal loan amount along with interest and other charges. The Borrower can also make part payments of principal or interest at any time during the currency of the loan. Pre-payment charges, if any, will be mentioned in the pawn ticket.
4. As notices / reminders will be sent to the Borrower as per requirements postage charges will be recovered from the respective account. The charges may be revised from time to time at the discretion of the Company which will also be displayed in the notice board and Company’s website.
5. The Company reserves the right to sell the Gold by public auction at any point of time or in the immediate future, even before the expiry of the period of the loan of one year, after serving a registered notice to the Borrower subject to the terms mentioned in para 13 below, if the Company is convinced, at its sole discretion, that the market price/ maximum realizable amount by sale of the pledged Gold has come down below or equal to the total amount due from the Borrower by way of principal, interest and other charges due.
6. Auction of Gold shall be carried out as per the guidelines issued by the Reserve Bank of India or other Authority. The Company shall intimate the Borrower by registered letter or courier service its intent to subject the Gold to public auction well before the proposed auction date. As a matter of policy the Company shall subject to auction all accounts remaining fully or partially unsettled after a period of 1 year from date of the loan. The list of accounts subject to auction along with the date and venue for auction shall be displayed at the concerned branch of the Company.
7. If full repayment of the loan along with interest and charges is not made within the period of the loan (one year) or within such period as demanded by the Company, the Company shall have the right to sell or otherwise dispose of the Gold at the risk of the Borrower. The Borrower out of his/her free will authorizes the Company to dispose of the Gold by public auction at any time after 2 weeks from the date of notice to the Borrower at the given address subject to the terms mentioned in Para 13 below and adjust from the net proceeds of such sale all amounts, including interest and other charges, due to the Company in respect of the loan. If there is any surplus on such sale the Company shall have the right to appropriate such surplus towards any other liability of the Borrower, solely or jointly with others, on any account whatsoever, to the Company at any of its offices. In case of any shortfall, after disposal of the Gold, the Company shall have the right to resort to legal proceedings against the Borrower to recover the shortfall.
8. In the event of loss of pledged Gold due to theft, burglary or for any other reasons, from the custody of the Company, the liability of the Company shall be limited to replacing the lost Gold with equal net weight as mentioned in the loan application form / pawn ticket. The Borrower and Company agree not to take any undue advantage of any unintentional / clerical error committed in the loan application form / pawn ticket. The Borrower agrees that stones embedded in the Gold, if any, carry no value.
9. The Borrower further agrees that the Company has made only a preliminary verification of the Gold and that the Company has the right to further check the purity of the Gold by experts at a later date, if required, at the Company’s sole discretion. The Company shall have the right to melt all or any portion of the Gold, at any time during the currency of the loan, if the Company has reason to believe, based on fresh or subsequent assessment, that the purity of the Gold is less than that declared by the Borrower.
10. The Company shall have the right to exercise lien on the Gold offered as security for this loan to secure the repayment of any other liability of the Borrower to the Company, which is due and payable, until such other liability is also fully settled. Exercise of such lien will be duly intimated to the Borrower by letter, email, SMS, telephone or any other mode of communication.
11. While as a matter of good practice and ethics the Company will not normally effect any changes in the agreed interest rate, charges etc. the Company may in exigencies effect changes prospectively after due intimation to the Borrower. The Borrower agrees to settle the loan within 7 days of the date of such intimation in case the revised rate of interest, charges etc. as intimated by the Company are not acceptable to the Borrower.
12. The Company shall have the right to assign or transfer the rights under this documentation, executed by the Borrower, to obtain necessary advance or financial facility from any Bank or Financial Institution or other organizations or for any other lawful purpose, at any time during the currency of the loan.
13. The address for all communications to the Borrower shall be the one furnished in the loan application form by the Borrower. Unless any change of address is duly intimated by the Borrower to the Company in writing and duly acknowledged , non- receipt of communication sent to the Borrower due to incorrect address furnished or any change thereof shall tantamount to a valid receipt /acceptance of the communication sent by the Company. The Borrower shall also keep the Company duly intimated about any changes in the recorded landline phone or mobile phone number to facilitate communications.
14. The Borrower shall use the loan amount only for the stated purpose and undertakes that the loan shall not be used for any unlawful, illegal or unauthorized purpose.
15. In the event the Borrower fails to produce the pawn ticket at the time of settlement, the Company may, at its sole discretion, deliver the pledged Gold to the Borrower after completion of the formalities and subject to payment of processing charges as may be applicable from time to time which will also be displayed in the notice board.
16. The Borrower shall bear, pay and reimburse all charges relating to administration , interest tax, service tax, duties (including stamp duty), sales tax/VAT and taxes (of any description as may be levied from time to time by Government or any other authority) and all other costs and expenses whatsoever in connection with
(a) application for and the grant and repayment of the Loan;
(b) recovery and realization of the Loan together with interest;
(c) enforcement of Security (Gold) ;
(d) clearance of arrears of all taxes and any other charges and levies of the Government in respect of Security and
(e) insuring the Security (Gold).
17. “All disputes, differences and/or claim arising out of or touching upon this gold loan, whether during its subsistence or thereafter, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory amendments thereof and shall be referred to the Arbitration of an Arbitrator to be appointed by the Company. The award given by such Arbitrator shall be final and binding on the Borrower and the Company”