SBT Gold Loan Schemes

State Bank of Travancore (SBT) is a nationalised bank that traces its roots back to the Travancore Bank Limited, sponsored by the erstwhile Princely State of Travancore. Currently, SBT is an associate bank of the State Bank of India under the SBI subsidiary Banks Act, 1959 and is headquartered at Trivandrum, Kerala. SBT offers two different types of gold loan schemes and in this article, we look at those schemes in detail.

SBT Easy Gold Loan

SBT Easy Gold Loan is provided for all individual customers who have an account with SBT and complying to KYC norms. If the applicant is not an account holder, they can apply for the SBT easy gold loan after opening a savings account with SBIT. The loan under easy gold loan scheme is provided for emergency medical needs, unforeseen commitments, contingencies and domestic purposes. Under the SBT easy gold loan scheme, loan of upto Rs.10 lakhs is provided with a tenure of upto 12 months against 22 carat gold jewellery - both hall mark and non-hall mark. Specially minted gold coins sold by Banks not exceeding 50 grams can also be pledged to raise loans under this scheme. Interest is debited monthly and is to be repaid with principal on the due date of the loan. Processing charge of a maximum of Rs.1000 is also applicable while availing the SBT easy gold loan. In case interest is not received by the bank for a period of 90 days from the due date, then the account will be classified as Non-performing asset (NPA) and the branch can initiate appropriate action including auction sale of gold ornaments pledged for recovery of the outstanding amount.

SBT Liquid Gold Scheme

SBT liquid gold scheme provides loan in the nature of an overdraft facility against gold for emergency medical needs, unforeseen commitments, contingencies and domestic purposes. Bank customers having account or those applicants opening a savings account with SBT are eligible for loan under the SBT liquid gold scheme. A maximum loan of upto Rs.25 lakhs with a tenure of upto 36 months can be provided. Principal amount can be paid in part or in full during the currency of the loan and interest is debited at monthly intervals. The loan must however be closed in 36 months from date of availment and must be renewed each year by the branch. At the end of 36 months and on closure of the loan account, the Branch can sanction or renew a fresh limit at the advance value - as per the scale of finance prevailing on that date. Gold jewellery of 22 carat - hall mark or non-hall mark and specially minted gold coins can be pledged as security for the SBT liquid gold scheme.