1.1. Product:

To provide loans to customers against pledge of gold jewellery as collateral security.

 1.2. Nomenclature and tenure of the loan

Nomenclature: The loan is given as a demand loan.

Tenure of the loan: All gold loans are sanctioned for a maximum tenor of 12 months unless otherwise specified under a particular scheme.

 1.3. Eligible customer

Any individual who is the lawful owner of the Gold Jewelry offered as security as per the declaration of ownership submitted by him and fulfilling the KYC norms as per RBI guidelines as specified in the product note given in Annexure.

 1.4. Purposes

The loan can be extended to anyone who is having short term fund requirements like working capital for establishment/ expansion of business activity or meeting personal liquidity requirements or domestic needs including medical expenses etc. Loans shall not be used for any speculative or illegal or unlawful purposes violating the laws of the Country.

 1.5. Quantum of finance:

In accordance with the product notes given in Annexure 1.

Aggregate of multiple pledges shall be limited to such amount as may be specified by the Credit Monitoring Officer (CMO) from time to time. Any deviations above such limit shall be normally approved by the CMO and where the aggregate of current outstanding and amount(s) proposed exceeds two times of the specified limit, then deviations shall be recommended by the CMO and approved by the Executive Director.

 1.6. Quantum and purity of gold that can be pledged and deductions to be considered

The minimum net weight of gold jewellery that can be considered for pledge is one gram. The ornaments shall be of minimum 22 carat purity. The weight of pearl, diamond, coral or any other stone or foreign material other than gold contained or forming part of the ornament irrespective of its value shall be deducted from the gross weight of the ornaments to arrive at the net weight for calculating the eligible loan amount.

 1.7. 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 and as communicated to the customer in the loan agreement.

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 in accordance with the Interest Rate Policy adopted by the Board.

However, if the borrower closes the loan within the minimum specified period of the laon, then interest for the specified minimum period or an amount of Rs 100 whichever is higher shall be payable.  In such cases, the borrower will be charged the basic interest rate specified for the loan less any applicable rebates in accordance with the loan agreement subject to a minimum amount of Rs 100 as specified above.

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 a grace period.

 1.8. Penal interest

Penal Interest to be levied shall be governed by the Interest Rate Policy adopted by the Board.

 1.9. Other charges

In addition to interest the Company may levy other charges as below. The rate at which such charges are to be levied shall be decided by the Board or a Committee empowered by the Board for fixing interest rates and other charges.

1. Security Charges
2. Processing charges
3. Service Charges
4. Documentation Charges
5. Notice Charges
6. Charges for lost tokens
7. SMs Charges
8. Auction expenses
9. Cheque re-issue charges
10. Dormancy charges
11. Part release charges
12. Transaction charges (under specified schemes)
13. All charges as decided by the Board or the Committee empowered by the Board which will be intimated to the customer upfront.
14. Stamp duty will be collected in States where it is mandated as per the Stamp Act/State government directives.

 1.10. Documentation

1. Loan Application
2. Demand Promissory Note and take delivery letter
3. Terms and Conditions Letter, which also includes declarations and undertakings by the borrower and acknowledged by him and any other documents that may be specified by the Company.
4. Consent to obtain Aadhaar details for authentication with UIDAI for “eKYC” purpose.
5. Any one or more of the following Officially Valid Documents (OVDs) specified by RBI as address/ID proof for completing the KYC of the customer. Required KYC documents are specified in the product notes given in Annexure 1.

 1.11. Jewelry Handling

1. Gross weight of the jewelry to be taken and appraised for assessing the purity. Purity check shall be conducted as per the various methods prescribed by the Company to make sure that the jewelry offered for pledge is of an acceptable level of purity.
2. Net weight of the jewelry to be arrived at after deducting the weight of stones embedded in the ornament completely disregarding the value of such stones. Appraiser to sign the appraisal form as proof of having done the appraisal. Where the process is automated, the approval on the software application will be regarded as a physical signature.
3. Jewelry to be packed securely along with the weight slip.

1. The Company may grant both secured and unsecured loans to individuals, Companies, firms, trusts and other entities as per the emerging business needs.
2. In case the loans are given without any primary/collateral security, like unsecured personal loans and other clean loans, more than ordinary care will be taken to see that such loans are granted only to persons/firms/Companies of repute with credit worthiness and track record. Any lending other than against the pledge of gold jewelry as collateral security will be subject to the maximum exposure limit of the net owned funds of Oleevia Grameen Credits Private Limited as may be defined by the Risk & Audit Committee from time to time. The rate of interest will be decided on a case-to-case basis taking into account various factors like the cost of funds, operational expenses, risk attached to the advance etc but will be subject to the ceiling on the maximum interest rate chargeable as per the Fair Practices Code of the Company.
3. The Company may outsource some of the activities connected with such loans like sourcing of loan applications/KYC verification/ dues collection etc. In such cases, agencies will be empanelled only after they are subjected to a due diligence process and after entering into an agreement with them complying with the conditions stipulated in the Board approved Outsourcing Policy.
4. The outsourcing agencies will be subjected to regular review and periodical audits by the Company’s internal auditors to ensure that they are complying with the mandatory requirements under Labour laws and other applicable regulations and the terms and conditions of the agreement entered into with the Company are being followed
5. The Company may also grant secured and unsecured loans to its employees and employees of its group companies in accordance with their eligibility and other terms and conditions fixed from time to time.

3.1. Products

Personal loans will normally be granted to individuals only after the Company is satisfied about the credit worthiness, integrity, local standing and repayment capacity of each borrower.
As a general rule unsecured personal loan will not be granted to any person who does not have regular verifiable income. Detailed product notes for each personal loan product will be prepared and presented in annexures to this policy.

3.2. Personal loans to salaried persons

Personal loans will be extended mainly to salaried employees of Public Sector units andother reputed institutions.. All other individuals who are willing to provide 100% collateral security in the form of NSCs, RBI bonds, LIC policies, or any other tangible security will also be eligible to avail personal loans.

3.3. Personal loans to self employed persons

Loans may be granted to self-employed individuals who has regular verifiable income which may be ascertained using IT returns, GST returns and/or other alternate means of verification.v

 3.4. Personal Loans to individuals other than salaried persons

Considering the opportunities available for lending to the above segment, instruments available to measure and mitigate risks, lending to non – salaried segment also can be made. CIBIL score and data scrub on our existing customers by reputed credit information agencies like CRIF High Marks may be used to identify potential customers in this segment with excellent track record and very low / low credit risk profile. Prospective customers identified by Fintech companies through their digital marketing platform can also be considered for financing subject to fulfilment of the eligibility criteria stipulated by the Company for granting unsecured loans

3.5. Personal Loans to Employees

Employees of Oleevia Grameen Credits Private Limited and all other Divisions of the Oleevia Group at terms and criteria approved by the Board of Directors or by a committee to whom the Board has delegated its powers in this regard. Such terms and criteria will include but not limited to:

• Minimum service period with the Group;
• Maximum tenure;
• Rate of interest;
• Number of times such loans can be availed within a prescribed period.

The terms and criteria will be as approved by the Board from time to time.

3.6. Loans to SME segment

The Company may extend financial assistance to SME segment directly or through arrangements with other financial entities like FINTECH Companies or banks for co-lending. The loans can be granted either in the form of Working Capital or Term Loan. Any scheme for lending to this segment will need the prior approval of the Board.

3.7. Loan to Traders and Self- Employed

Many of our customers availing gold loans belong to traders and self – employed category. With a view to attract such customers and to retain them with us, loans can be granted to them based on their income earning and repayment capacity duly backed by a good credit history as revealed by their credit bureau reports. A credit appraisal based on formal or informal income will be used to decide on eligibility of a loan applicant. Additional credit risk mitigants such as co-obligancy by the applicant’s spouse or close relative will also be considered.

3.8. Sourcing and Recovery

Sourcing and recovery shall be by Oleevia Grameen Credits branches. If found necessary services of outside agencies can be availed.

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.

The Company may, with a view to augmenting its non-fund based income, enter into arrangements with any Company or entity for selling Insurance, Mutual fund or any other products, strictly within the norms prescribed by the regulators in the respective area and those stipulated by Reserve Bank of India from time to time.