Terms & conditions

  Terms & Conditions(Key Fact Statement)

1. Only own gold jewellery of 22 ct purity can be pledged and it is measured in grams. Otherwise, the mortgagor will be fully responsible for the losses incurred by the company if the loan is taken by misleading the company.

2. Interest is calculated monthly. Even if the pledge is withdrawn within seven days of the pledge, interest will be charged for a minimum period of 7 days or Rs.50 whichever is higher. If borrower shall not service full interest before the expiry of interest rate slab change, that particular gold loan account will move to next higher slab.

3. Interest is payable in full every 30/60/90 days asper the scheme chosen by the borrower. In case of non-payment of interest monthly/bio-monthly/trimonthly, simple interest rate on the principal from the date of pledge / date of last payment of interest shall be applicable at the rate of interest shown on the opposite side.

4. If the loan amount and interest are not repaid within the specified period, the company has the right to sell the gold jewellery at public auction by giving 14 days notice to the mortgagor. Before that, customer is given adequate time to close the account by sending two more notices before registered auction notice at frequent intervals. In addition, telephonic calls and SMS alerts are sent to the customer indicating that accounts will be taken for auction,if it is not renewed within the prescribed time.

5. The Principal Loan amount and interest shall be repaid at such time as may be demanded by the Company or before the tenure of the Gold loan scheme as may be selected by the borrowed ends. In contrast, it is the company's general policy to auction all outstanding loans in part or in default. Accordingly, the Pawns will be sold through auctioneers empanelled by the Board of Directors of the Company and the proceeds shall be added to the account consisting of principal, interest and all other expenses including news paper advertisement, travelling expenses, auctioneer fees and other expenses incurred by the company . If the auction amount exceeds the liability of the mortgagor, the mortgagor is notified and the excess amount is returned within seven days from the date of auction. Company shall have the right to recover any shortfalls from the borrower if the total due including principle,interest and other charges exceeds the realisable value from auction.In this case company may send a letter to the customer asking him/her to pay the shortfall ,otherwise legal action may be initiated by the company. Thus the mortgagor has no right to raise any dispute about the sale made by the company. The Company shall have no responsibility or liability for any loss incurred by the Borrower as a result thereof.If customer is not traceable, the surplus amount will be kept in a separate general head, Auction surplus account.

6.The loan amount should not be used for illegal activities.If loan availed by the borrower is found to be used illegally or purposes other than stated, company will take legal action against the borrower.

7. The Company reserves the right to change the schemes / interest rates as may be applicable from time to time.

8.The mortgagor or the person authorized by him in the prescribed form of the company can repay the loan amount and interest and can take possession of the mortgage. In this way, every time he comes to repay the loan amount or interest, he must bring customer copy of the pledge and the same must be returned to the company at the time of closing the loan.

9.In case of loss of the customer copy of the pledge, the mortgagor has to appear in person when comes to recover the pledge and  produce a bond in the prescribed form in the prescribed amount .

10.In case the customer is deceased ,gold collateral shall be released to the Nominee /Legal heirs after fully fulfilling the company’s process with regard to death case.

11.Any changes in the customer's address or phone number should be immediately reported to the company in writing or in person.

12.Company is arriving at the value of the loan amount based on the purity of the ornaments which means full LTV is granted as against 22 Carat Hallmark gold.If gold collateral is of purity less than 22K,company shall translate the collateral into equivalent of 22 K purity and accordingly value the collateral. In other words ,collateral of lower purity of gold shall be valued proportionately. For valuation, the lower of  (a) the average closing price of 22K gold for the preceding 30 days or (b) the closing price 22K on the preceding day shall be considered as the price of 22K  gold.

13.If the company discovers whether the purity of the pledged gold is less than 22 ct, or is fake, the pledged person shall bear responsibility and pay compensation for the losses caused to the company through this. Apart from that, the mortgagor is liable to repay the pledged amount with interest. The company reserves the right to take legal action in case of any default.

14. In case of loss of the pawned jewellery due to natural calamities beyond the control of the company such as fire, flood, earthquake etc., the company will be liable to compensate the customer only after receiving the insurance amount for the same.

15.If the company thinks fit, the mortgagor can be asked to repay the loan at any time before the maturity date and take possession of the collateral. If so demanded, the mortgagor shall repay all the loans in his name with interest and take back all the jewellery.

16. Mortgagors are also liable to accept SMS messages and e-mails sent by the company phone to inquire about the services of Richmax Finvest Pvt Ltd or for other purposes.

17.If the value of the pledged items is depreciated, Company has the right to apply MTM (Mark to Market) clause and demand the customer to redeem the gold loan or remit the difference amount based on the market value of the ornaments so that the eligible loan amount will be on par with the current LTV. If this is not done, the company will have the authority to collect the principal and interest by auctioning the mortgaged goods before maturity.

18. A notice period of 14 days shall be given prior to the auction and the auction details shall be published in at least one local language newspaper. In this case all formalities as required for auction will be followed without any deviations.

19. The Borrower hereby authorizes the Company to release the details or documents regarding the financial transactions entered into by the Borrower with the Company as required by law or in accordance with the guidelines of the Reserve Bank.

20.The mortgagor shall also bear the stamp duty or other charges/undertakings necessary for the loan agreement/mortgage.

21.  Purity of gold and weight of stone for the above table have been determined by valuation and weighing in accordance with existing conditions and methods of testing. Certain impurities and other impurities can only be captured by detailed inspection methods, including cutting the jewellery, over time, or later if necessary. If, therefore, the purity and approximate weight of the gold is found to be less on subsequent detailed examination or at the time of auction, the purity and approximate weight so determined shall be deemed authentic.

22. In case of loss of the pledged goods due to theft, robbery etc., the loan amount on the date of robbery and the loan amount as on the date of theft shall be written by the borrower from the net weight of gold (22K) as per the then lending rate fixed by the India Bullion and Lenders Association for determining the existing loan amount. The company is only liable to pay the balance after deducting the interest up to date.

23.Company shall have the right to conduct verification of gold pledged

24. All disputes, differences and / claims arising of or pertaining to this loan whether during its subsistence or thereafter shall be settled by arbitration Or conciliation in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory amendments and thereof shall be referred to the Arbitration or Conciliation of a Sole Arbitrator or conciliator to be appointed by the Company. The award given, by such Sole Arbitrator/Conciliator shall be final and binding on the Borrower and the Company. The parties to this Agreement hereby agreed that the arbitration proceedings and other legal (both civil and criminal ) proceedings relating to this loan shall be under the jurisdiction of the Ernakulum District or the place of execution of loan and in English language. The decision of the venue of Arbitration proceedings shall be vested with the Company.