FAQ’s on Gold Loans

Kosamattam Finance

What is a Gold loan?

Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Customer can contact any of the branches of Kosamattam across India and avail loan. Most of the customers prefer gold loan as a short term loan. It is a convenient loan to the customer as the opening and repayment can be done easily. Documentation process is very less and customer can avail the loan with ID proof and address proof. Loan is sanctioned from branches after verification of gold and also based on source of income and repayment capacity of an applicant. Loam amount are sanctioned based on the market price of Gold and the LTV as restricted by the authority. Loan are sanctioned for a specific period and premature closure is allowed at any point of time after making the interest payment

Who is eligible to avail Kosamattam Gold loans? What security has to be provided?

Anyone who owns gold ornaments can avail the loan. (Note: minors are not eligible.) To obtain the loan you need to submit your gold jewellery (within a karat range of 18 to 24 k) at the branch. The loan amount that is sanctioned will be based on the gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.

What are the documents required for taking loan against gold ornaments?

We need one document of identity proof (such as ration card, Adaar, driving licence, PAN Card, Voter ID card, Passport, Pass book etc.) and one document of residential proof. There are no end-use restrictions in gold loans.

What is the rate of interest charged on such loans? How is the interest calculated?

Interest rate is decided based on the frequency of interest payment. Loans are granted for specific tenor and interest can be paid by the customer at any time. Interest rate depends on the amount on per gram rate availed on such gold. Company will disclose the rate in the website www.kosamattam.com time to time. Interest is calculated at 360 days count and penal interest will be charges if not closed before the tenor. There are no prepayment penalties.

What is the tenor of such loans?

Our Gold loan products have different tenor as decided by company time to time and customer can choose the tenor.

How long will it take for me to get my gold loan?

We have to verify the loan documents submitted by the applicant as well as the purity of Gold. After completion of such verification loans are sanctioned from branches.

What are the safety measures taken in branches?

Gold ornaments accepted as pledge by the customers are stored at the branches in strong safe / strong room built to the standards and specifications applicable to commercial banks. The pledged gold ornaments are insured for full value. Live verification of all branches is done at head office as an additional measure.

Can I pay the interest in other Branches?

Customer can make the interest payment through any of the branches of Kosamattam after paying required charges.

How can I close the loan?

Customer has to visit the respective branch and submit the pawn ticket (given to them at the time of taking loan) to the counter staff at the branch with a request to close the loan account. The staff will enquire into your account in the (computer) system and inform you of the outstanding loan amount (principal + interest accrued). By depositing the outstanding loan amount with up to date interest and other charges, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.

Is there any maximum and minimum limit for availing Gold Loan?

Kosamattam Gold loans may be availed for any amount between Rs.500 to a maximum of Rs.50,00,000 Loan requests more than 50 Lakh shall be approved only after the confirmation from Head office Credit department.

Whether partial payments of loan and interest are accepted?

Customers are free to repay part amount of loan and/or accrued interest thereon at any time in order to reduce the interest burden on the loans.

Who can make the interest payment? Who can collect the gold at the time of closing?

Customer as well as his representative can pay the interest. Customer has to visit our branch for collecting the gold and if customer is not in a position to collect the gold then he can send a representative with specified request letter.

What happens if the loan amount is not repaid on the due date?

In case loan amount is not repaid on or before the due date, penal rate of interest is liable to be charged on the loan amount from the due date of loan.

Is there a possibility of damage to the ornaments at the time of appraising?

Appraising is done in the presence of the customer only. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.

What are the things that people should keep in mind while taking a gold loan?

The most important things from the customer’s perspective are transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any mala fide actions after the jewellery has been pledged. The choice of loan products should cover the range from high LTV (loan to value) to low LTV, with appropriate variations in interest rates. Kosamattam dont want to lose any customer and due steps has been taken for the satisfaction of every customer.

What is the attraction in Kosamattam?

We are in Gold loan business for a century and the trust we are with the customer is the heart of the company. All steps have been taken to ensure that the entire customers are happy with the service from Kosamattam. We are serving the gold loan with due care and loan is approved without any delay if the documents are sufficient..

What is LTV (Loan to Value)?

LTV is the base fixed by authority which is the maximum amount which can be given as loan. For Eg if the market price is ₹2000/ gram then the maximum loan that can be provided will be 1500 if the fixed LTV is 75. Interest rate will be high for loan with higher LTV based on the risk.

What is the auction Process in case loan is not repaid on time?

After the tenor we will send auction notice to the customer through registered letter. If the loan is still not repaid with penal charges then auction date will be published in newspaper and the amount will be collected from the bidder. Excess amount received on such auction will be repaid and if amount is not enough to settle the gold loan then legal action shall be taken against the customer. We will also send post auction notices to the customer.

What is the process if I lost the Pawn Ticket?

Customer has to submit the pawn ticket while closing the gold loan. In case the pawn ticket is losed then customer has to submit the indemnity and extra charge for pawn ticket loss.

What is the process if customer has died?

If the customer has died then nominee can settle the amount and collect the gold loan on submission of required death certificate. If nominee is not mentioned then legal heir can collect the gold after making the payment.

Whom do I contact for more details?

Kindly get in touch with the staff at the branch nearest to where you are located.

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