Gold Loan Policy amended and duly approved by the Board of Directors in the Board Meeting held on 04.04.2024 at the Registered Office of the Company.

Introduction

India boasts a significant abundance of domestic gold, owing to entrenched social customs and the esteemed cultural tradition of bestowing gold during matrimonial ceremonies. Often, this precious metal languishes within households, relegated to the status of a "dead asset" due to its sentimental worth. We firmly believe that individuals should not resort to securing personal or business loans at exorbitant interest rates and prolonged tenures when they possess such a valuable asset within their homes. Leveraging this profound understanding, Mulamoottil Financiers Limited has meticulously crafted its Gold Loan Schemes.

GOLD LOAN SANCTION / PROCESS

The loan eligibility is evaluated based on the purity of the ornament and a percentage of the gold market value is sanctioned as Gold loan. The ratio is known as the Loan to Value or LTV ratio. Presently RBI has prescribed a limit of 75% as LTV.

The Rate of Interest is decided on four factors:

• LTV % (Loan to Value).
• Customer relationship with the bank.
• Purity of Gold
• Amount of loan availed

HIGHLIGHTS

• Simple Interest calculation till the Gold Loan Closure.
• Loan starts from One Thousand Rupees to One Crore Rupees.
• Convenient KYC requirements: Recent ID Proof (Voters ID/Ration Card/Driving License, Passport) & Mobile Number

A. Terms & Conditions

• 1. Loan Applicant/Borrower shall not be a Minor. Sanctioning of Loan is subject to the Application Form duly filled and signed by the Loan Applicant/Borrower.
• 2. Simple interest shall be payable at the rate specified in the Pawn Ticket along with incidental charges as may be fixed by the Company from time to time. Minimum amount allowed against Gold Loan is Rs. 1000/- and maximum amount allowed in cash is restricted to Rs. 1 lakh. Sanctioning and payment above Rs. 1 lakh of Gold Loan is directly to Customer's Bank Account through RTGS/NEFT option. Maximum amount allowed as Gold Loan is Rs. 1 Crore.
• 3. Audit shall be conducted at any time by a Single Auditor or Auditing Team which includes an appraiser also. The appraiser shall re-check the gold and confirm the quality of gold ornaments. After that the gold packet is sealed in a special cover and bar code / security sticker shall be pasted on the back side of the cover. The Branch Staff will not be allowed to break the Sealed Packets without the presence of the Customer, and it can be opened only at the time of release.
• 4. If the loan is not repaid on demand within the Loan Tenure, as specified in the Pawn Ticket, the company shall have the right to levy interest on Simple Interest Basis at the maximum rate of interest as per the slab mentioned in the Pawn Ticket for the period unpaid from the date of loan till the closure of loan, both dates inclusive.
• 5. Sanctioning of Gold Loan will be based on the valuation of Gold which involves verification of purity, the weight of stones, market value of gold etc. The company will make only a preliminary verification of gold and the company has the right to further check the purity/weight of the gold internally or by experts at any point or time if required. Company will not sanction loan against stone ornaments. In exceptional circumstances, it may be sanctioned by reducing 50% from the total weight.
• 6. The borrower shall repay the entire dues/outstanding under the loan including principal, interest and other incidental charges. The borrowers has given an option either to pay the interest due till he/she makes the complete payment or a higher amount covering interest due on part payment basis. Gold loan interest will be calculated for a minimum period of 7 days.
• 7. If the loan is not repaid within the period of loan (as specified in the Pawn Ticket) or within such period as demanded by the company, the company shall have the right to sell or otherwise dispose of the Gold through public auction at the risk and cost of Loan Applicant/ Borrower. The Loan Applicant/Borrower, out of his/her free will, authorizes the company to dispose of the Gold by public auction at any time after 15 days from the date of notice to the Loan Applicant/ Borrower at the given address and adjust from the net proceeds of such sale, all amounts including interest and other charges due to the company in respect of the Loan. If there is any surplus on such sale, the company shall have the right to appropriate such surplus towards any other liability of the Loan Applicant/ Borrower, solely or jointly with others, on any account whatsoever to the company. The net surplus, if any after such appropriation, shall be refunded to the borrower or placed in an escrow account if the borrower does not present himself / herself. In case of any short fall after disposal of gold, the company shall have the right to report to legal proceedings against the borrower to recover the short fall.
• 8. The period of Loan shall be 1 Year. However, the Loan Applicant may continue the Loan after loan tenure by renewing the existing pledge. But in order to so he/she must pay all the interest and other charges due as on date. Company will remind through SMS periodically to Loan Applicant / Borrower to pay the interest. From the sanctioning of Loan to the Closure of Loan, Company will update customer, matters related to his/her pledge through SMS.
• 9. The Loan Applicant/Borrower understands and acknowledges that the Company shall subject to auction, all accounts remaining fully or partially unsettled after expiry of the loan tenure, as specified in the pawn ticket or otherwise. The Company shall intimate the Loan Applicant/Borrower by registered letter or SMS or telephone or personal intimation or any other mode of communication and giving advertisement in two Daily Newspapers its intent to subject the Gold to public auction well before the proposed auction date. The auction shall be conducted as per the guidelines issued by the concerned Regulatory Authorities from time to time. The list of accounts subject to auction along with the date and venue for auction shall be displayed at the concerned branch of the Company and shall also be published as per the guidelines issued by the concerned Regulatory Authorities from time to time.
• 10. In the event of loss of pledged gold due to theft, burglary or for any other reasons from the custody of the Company, the liability of the Company shall be limited to replacing the lost Gold with equal net weight as mentioned in the loan application form/pawn ticket.
• 11. The company shall have the right to assign or transfer or securitize the rights to obtain necessary advance or financial facility from any bank or financial institution or other organizations or for any other lawful purpose, at any time during the period of the loan.
• 12. In the event the Loan Applicant/Borrower fails to produce the pawn ticket at the time of settlement, the Company may, at its sole discretion, deliver the pledged Gold of the Loan Applicant/Borrower after completion of the prescribed formalities and subject to payment of Rs.50/- as extra payment. In the absence of the Loan Applicant/Borrower, he/she shall authorize a Legal Representative by giving Authorization Letter (by the Loan Applicant/Borrower). The ID of the Authorized Person/Legal Representative must be presented when he/she comes to settle the pledge and collect the gold ornaments on behalf of the Loan Applicant/Borrower.
• 13. The Loan Applicant/Borrower shall bear, pay and reimburse all charges relating to administration, interest, service tax, auction expenses, duties (including stamp duty), Sales Tax/ VAT and taxes (of any description as may be levied by the Government or any other authority from time to time).
• 14. For clarifications or complaints, the Loan Applicant/Borrower may contact by post at Mulamoottil Financiers Ltd (Formerly Mulamoottil Leasing and Hire Purchase Ltd), Mulamoottil Buildings, Market Road, Kozhencherry, Pathanamthitta District, PIN - 689641 or by email to info@mulamoottilgroup.com giving the name of the branch, nature of complaint and Gold Loan Number.
• 15. All disputes, differences and/or claims arising out of or touching upon this loan, whether during its subsistence or thereafter, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory amendments thereof and shall be referred to the Arbitration of a Sole Arbitrator to be appointed by the Company. The award given by such Sole Arbitrator shall be final and binding on the Loan Applicant/Borrower and the Company. The loan application forms will be preserved for a period of 30 days from the closure of loan.
• 16. The Company shall have the right to make disclosure to Credit Information Companies or such other similar agencies.
• 17. the company is resolved to follow the IBJA (Indian Bullion and Jewelers Association) gold rate for 916 (22K) gold when fixing the gold benchmark rate for assessing the LTV (Loan to Value ratio). The company shall update this rate every 2 weeks in the software and shall maintain a track of the changes made.

B. GOLD LOAN SCHEMES, INTEREST RATES, CHARGES LEVIABLE

Schemes: Asset classification and income recognition in case of all loans sanctioned under the various schemes formulated to cater to different segments, will be as per the norms prescribed by Reserve Bank of India from time to time. All gold loans are sanctioned for a maximum tenor of 12 months unless otherwise specified under a particular scheme.

Interest and charges: Interest and other charges to be levied shall be governed by the interest rate policy adopted by the Board. The Board, or a committee empowered by the Board shall review the interest rates and other charges periodically and approve necessary revisions as per the business requirements. Any revision in interest shall only be with prospective effect.

Interest and other charges to be levied on the loan shall be as per the schemes formulated and amended from time to time. The interest rates shall be decided based on the cost of funds, and also gradation of risk, the underlying principle being higher the risk higher the interest, within the ceiling rate decided by the Company. No loan shall be granted at a rate of interest less than the average cost of funds of the Company without the specific approval of the Board.

The interest shall be calculated for the actual number of days the loan remains outstanding from the date of loan disbursement to the date of closure. However, if the borrower closes the loan within 7 days from the date of disbursement, then a minimum interest for 7 days shall be payable for gold loan schemes where the minimum effective interest rate is more than 11%. For gold loan schemes with minimum effective interest rate is 11% and below, a minimum interest for 15 days shall be payable, if the borrower closes the loan within 15 days from the date of disbursement.

If the amount of interest so calculated is less than Rs.50/- then a minimum interest of Rs.50/- will be charged. A rebate in interest rate may be provided for encouraging timely repayment of interest or closure of the loan on or before the specified tenor as per different slabs built into each scheme.

For the purpose of calculation of interest, a year will be reckoned as 365 days. Interest will be calculated on monthly compounding basis.

If the due date for payment of interest falls on a Sunday/Holiday, the Company may, at its discretion, allow the borrower to pay interest on the next working day without slab change, treating the intervening Sunday/Holiday as grace period.