DBS Bank Gold Loan

DBS Bank has the facility to cater to the requirements of agriculturalists and non-agriculturalists. The interest rate, quantum, repayment tenure and eligibility conditions for a DBS gold loan can differ accordingly. The gold loan is offered up to a certain amount against the pledged value of gold ornaments owned by individuals and farmers. 

The non-agri customers can avail a gold loan to meet personal, as well as business expenses, while individual agriculturalists and farmers are qualified to avail a gold loan from DBS Bank, provided they are engaged in agricultural and allied activities. 

DBS Bank offers an option to avail personal accidental insurance to all gold loan borrowers starting from less than Re 1 per day. The personal accident cover for gold loan customers is awarded under policy arranged by DBS Bank Ltd through Go Digit General Insurance Ltd. 

• Gold loan borrowers between the age of 18 and 65 years are entitled to exercise the option of personal accident insurance cover of up to Rs 25 lakh. 
• The annual premiums for Rs 5 lakh, Rs 10 lakh, Rs 15 lakh, Rs 20 lakh and Rs 25 lakh are Rs 202, Rs 404, Rs 604, Rs 805, and Rs 1,007, respectively. 
• The tenure of personal accident insurance is up till the gold loan repayment period which is subject to a maximum of 5 years. 
• The annual premium, tenure, sum insured under personal accident cover, eligibility and gold loan repayment period may vary from customer to customer. 

DBS Bank gold loan interest rate fluctuates with different customer profiles. However, the applicable rate of interest on gold loans is relatively lower for agri customers as compared to non-agri borrowers. According to the revised rate of interest on DBS gold loan, the lender has pronounced a margin of 5.50% and 6.75% on agricultural and individual borrowers, respectively. 
The stipulated margin is over and above the prevailing repo rate. Clearly, the margin for agricultural borrowers is lower following which the applicable gold loan interest rate for farmers is 12%, whereas the rate climbs to 13.25% for non-agricultural individual borrowers. 

Gold Loan Comparison 2023

To avail a gold loan from DBS Bank, an individual borrower is required to produce mainly two documents which are permissible as a proof of identification, proof of address and two copies of latest passport size photographs. 

The agricultural borrowers aiming to secure a gold loan from DBS Bank are required to produce a third document that can act as a proof showcasing the possession of agricultural land. The need for an ID proof, address proof and two photographs will continue to remain the same. You can also check Loan Against Agriculture Land Online.

The agri borrowers can also enjoy a preferential rate of processing fee as against the normal individual borrowers. The applicable processing fees on DBS gold loans for farmers is 0.20% of the loan amount which can go up to a maximum of Rs 1,000, while the processing for individual customers is fixed at 0.40% of the gold loan amount. 

Notably, there is no upper ceiling on the processing fees applicable on DBS gold loans for individual borrowers. A common GST at a rate of 18% is levied on processing fees and interest charges on all DBS Bank gold loan applications. 

DBS Bank also collects appraiser commissions from gold loan customers. The first appraiser commission charged from all DBS gold loan customers is 0.20%. The commission is capped to a maximum of Rs 1,000 for agricultural borrowers, while the limit is Rs 2,000 for individual borrowers. 

In case the loan amount exceeds Rs 10 lakh, DBS Bank charges a second appraiser commission from all gold loan applicants. The second appraiser commission for farmers, as well as individual customers is fixed at 0.20% of the gold loan amount subject to a maximum of Rs 400. 

Beyond the applicable interest rate, processing fees and appraiser commissions, DBS Bank levies stamp duties on gold loan disbursals which are calculated as per the actual stamp duty rates that vary from state to state. The bank personally conveys the applicable stamp duty charges to gold loan borrowers from time to time. 

Furthermore, DBS Bank imposes a penal charge for irregularities in repayments, overdue balance, or exceeding the LTV ratio. The penalty for such irregularities is 2% which is collected over the prescribed interest rate. 

Interestingly, the processing fee is waived off for agricultural borrowers for a loan amount up to Rs 25,000, while the individual borrowers are subjected to a minimum processing fees of 0.10% for loan amounts up to Rs 25,000. 

DBS gold loan facility is not available online either on the website or on the digibank application. Individual, as well as agri borrowers are required to visit the nearest DBS Bank branch for any assistance regarding agricultural and individual gold loan schemes.