Ø      Eligibility :

à  Farmers who need loan of Rs.25000/- and above against the pledge of gold ornament alone are entitled for SOD. Advance value based on the value of jewels as per existing guidelines.

Ø      Objective :

à  For Agriculture Sector

à  Short Term Production needs/Working capital needs for applied activities, consumption needs of farmers.

Ø      Loan Amount :

à  Presently Rs.600 per gram (or) 70% of the market value of the jewels to be pledged, whichever is lesser.

Ø      Interest Rate :

Upto 3 lakhs -                    7.00% (Under 2% interest subvention from Govt of India)

Rs.3.00 to Rs.5.00 lakhs -    @ BPLR + 0.50 = Presently 13.00 %

Rs.5.00 lakhs    -                  @ BPLR + 1.00 % = Presently 13.50%

Ø      Security :

à Pledging of jewels.

Ø      Repayment Period :

à Interest should be charged and paid every half year.

à Accounts should be reviewed once in six months and renewed every year taking into consideration 70% of the market price of the jewels prevailing at the time of review/renewal.

à Part redemption is not allowed.

à Only at the time of renewal of the facility branch may allow substitution of jewels and limit refixed based on the prevailing market value.