Kosamattam finance is the pioneer leader in the gold loan portfolio in India. We provide feasible financial solutions and wise investment decisions to channelize the best value for your Gold, along with the simplest of paperwork, so that you may fulfill your dreams within a matter of minutes. When you are faced with an emergency that comes without warning, you can always use your gold jewelery to raise that urgent credit. Gold loan is that one facility that which helps you to out run those short-lived cash deficits. When life's uncertainties pull you along, and you have nowhere to go, you should turn to the right door to entrust your hard-earned valuables and secure the maximum loan against it. Walk-in to our wide spread offices and find the financial services that suit your every need and enjoy the benefits of flexible repayment plans and customized policies. Experience the Touch of Gold and let us find solutions to your needs.
Kosamattam finance has numerous branches spread across the rural and semi urban localities in the country, which form the base of our company. Our customers involve people from various strata of life including small business men, entrepreneurs, farmers, retailers and the common man who find it difficult to access credit facilities from banks and other financial institutions due to the hectic procedures involved. Our hassle free documentation make us a preferred player among our contenders. We provide Business and Personal Loans secured against Ornaments and Gold. Our dedicated customer service and the best value for our customers needs keeps us up above our peers even at the time of exigency.
The Board of Directors of the Company or a Committee drawing power from the Board, while fixing interest rates on Gold Loan Schemes shall be guided by this policy document on Interest Rate Fixation.
Apart from the cost factors set out hereunder, the Board or the Committee shall be guided by the prevalent market conditions and various rules and regulations, if any, prescribed by the Reserve Bank of India or such other competent authority from time to time.
Interest charged under various Gold Loan Schemes shall have the following components:
Interest Rate denotes the rate chargeable under every Gold Loan Scheme regardless of the risk weight attached to the schemes or the type of scheme. Interest shall be arrived at after considering the following aspects:
This component takes into consideration the interest and other incidental charges payable by the Company for servicing the borrowed funds deployed by the Company. Major contributing factor to this component includes interest payable on Secured Non Convertible Debentures, Interest on Bank Borrowings and other incidental charges thereto.
This takes into account the Employee cost to the Company and other operational & miscellaneous overheads.
3 ) Return on Capital Employed after factoring in the above cost factors, the Board shall take into consideration a fair return on capital employed which is to be generated by the management for servicing the owners capital employed in the business. Thus the basic interest rate for the gold loan schemes shall be determined by considering the cost of working capital, overhead cost and fair return on capital employed.
Interest shall be arrived at by taking into consideration the degree of risk involved in loans under each loan scheme. While the rate shall be the lowest for the schemes where advance amount vis-à-vis the weight of gold is the lowest, it shall be increased for schemes offering higher advance amount for the same weight. Further, irrespective of the scheme, the interest shall also be determined after taking into account the period of the loan as the incidence of risk goes up with the passage of time.
Loans accounts that are outstanding for more than a period of one year may be charged penal interest after communicating to customer in order to compensate the loss on account of liability exceeding the realizable value of gold given as security.
The rate of interest will vary depending on the rate at which advance has been availed, as the Company has different schemes which enables the borrower to avail a higher amount of loan for a given value of the asset pledged.
The acceptance of these terms and conditions are to be recorded by obtaining the signature of the borrower.
* Above 12 months penal interest 4% added for addl. One month