An advance on Gold Jewels will be granted to Nominal Members of the Bank at the discretion of the Branch Manager or the Officer authorized by the Board from time to time. Such a person should be a good and regular customer of the Bank or others who are properly introduced.
No jewel loans shall be arranged for amounts for less than Rs.1000/- and not more than
Rs.10,00,000/- per party.
The borrower must declare that the jewels are his own and he must agree to abide by the valuation of the Banks Appraiser. The lien letter taken along with D.P.N. must empower the Bank among other things to sell the jewels in private or public auction and the borrower must also agree to make good any loss on an eventual sale of jewels in adjustments of dues to the Bank.
Loans should be repaid within a period of one year from the date of advance and it should be treated as overdue if the interests in arrears for over 6 months or from the date of expiry of the year from the date of advance whichever is earlier.