Gold Finance

1. Running Finance.
2. Term Loan.
3. Gold Transfer Facility.

JS Bank Gold Finance means financing against pledge of gold/ gold ornaments for the following purposes:

1. Business needs.
2. Investment Needs.
3. Personal Needs.

The target market for this product would comprise of existing and potential customers who may be further classified into the following categories:

1. Owners of small and medium sized businesses.

2. Owners of farmland and agricultural land.

3. Professionals and salaried individuals (Personal / Investment needs).

4. Housewives (Personal / Investment needs).

Gold ornaments for the above purposes shall include gold bullion. Further, diamond jewelry shall NOT be accepted as collateral against the financing. Finance shall be allowed against already owned gold/gold ornaments, that is, it shall not be allowed to purchase gold/gold ornament.

General

1.  Checklist.
2.  Customer Profile.
3.   CF 1 in case of loan being parked in consumer financing.
4.  Facility Request Letter.
5.   Copy of CNIC of the borrower.
6.  Biometric verification of the borrower.
7.   Borrower’s Basic Fact Sheet or Loan Application Form.
8.  Personal Networth Statement.
9.  NTN Certificate or undertaking in lieu thereof or Income Tax / Wealth Tax Form.
10. Obligor Risk Rating.
11. CA Face Sheet.
12. LAF.

For Pledge Marking

1. Promissory Note.
2. Agreement of Financing.
3.  Irrevocable Authority to Recover Markup and any other charges.
4. Acknowledgement Agreement.
5.  Confirmation & Undertaking for Utilization of Credit Limit.
6. Letter of Pledge.
7.  Delivery Letter.
8. Facility Advising Letter (FAL) duly accepted by borrower.
9. Nomination Letter.

For Consumer Category Loans CF-1 Form is mandatory and For SE Loans LAF is Mandatory
For Business use Loans to be Parked in SE Category, For Personal use Loans to be Parked under Consumer Category .

1.  Borrower(s) must be Pakistani citizen(s) bearing a valid CNIC or NICOP or a business including sole proprietorship, partnership or private limited company.
2.  The minimum age of the borrowers (in case of individual) should be 18 years while the maximum age should be 65 years at the time of application. For deviations, refer to “Deviations / Exceptions”.
3.  Both ETB & NTB borrower(s) are eligible for availing the Gold Finance facilities i.e., Term Finance A, Term Finance B, Running Finance & Gold Loan Transfer Facility (in case, borrower is availing Gold Loan from NBP).
4.  Gold Ornaments of at least 21 Karat or above.

	Term Loan A	Term Loan B	Running Finance
Branch Level Processing	100 Minutes	100 Minutes	07 Days
Risk	15 days from the initiation of the case as per SME regulations

It is the responsibility of the concerned branch to ensure that all documentation is complete so that disbursement of financing limit can be carried out.

The mark-up to be charged on JS Bank GoldFinance shall be as follows:

financing limit of PKR 299,999 or below
Running Finance	Mark-up rate of 3M KIBOR + 12 % (inclusive of prompt payment bonus of 2%).
Term Loan A:	Mark-up rate of 1-Year KIBOR + 12 % (inclusive of prompt payment bonus of 2%).
Term Loan B	Facility B: 22% per annum (fixed).
Term Loan Plus	Same as Term Loan A.
financing limit of PKR 300,000 & above
Running Finance	Mark-up rate of 3M KIBOR + 9 % (inclusive of prompt payment bonus of 2%).
Term Loan A:	Mark-up rate of 1-Year KIBOR + 9 % (inclusive of prompt payment bonus of 2%).
Term Loan B	20% per annum (fixed).
Term Loan Plus	Same as Term Loan A.
Transfer Facility A & B
Running Finance	Mark-up rate of 3 Months KIBOR + 5%.
Term Loan A:	Mark-up rate of 1 Year KIBOR + 3%.
Term Loan B	Mark-up rate of 1 Year KIBOR + 3%.

Loan Processing:

Limit	Processing At
Up to Rs. 2,500,000/-	Branch Level
2,500,001 – 25,000,000/-	Jointly Risk & Business

1. For loan amount of up to Rs. 2,500,000/- the disbursement shall take place via branch.
2. In case of Term Loan CIF based disbursement.
3. In case of Running Finance, Account based disbursement.
4. For all loan amounts above Rs. 2,500,000/-, account opening is mandatory regardless of the Gold variant.
5. For loan amounts above Rs. 2,500,000/- approval of the loan will take place via Risk and disbursed via CAD.
6. A detailed CA would be raised for all such cases including required documents duly filled and signed-off.
7. For Loans more than 2.5 Million the Processing and the decision/Approval would be Jointly by CRO and GH-RBG

-  The Gold Finance Relationship Manager shall set an appointment with the valuator on the Bank’s panel and coordinate with the customer and the designated branch personnel.

-   The valuator shall be the one as per the list shared by CAD daily.

-   In case the Goldsmith shared by CAD has not been used for evaluation, CAD will not accept and process the case and the case shall be declined / remain discrepant.

-   The valuation of the gold ornaments should take place at the designated branch of JSBL rather than at the goldsmith’s premises. The valuation will be conducted by the designated valuator in presence of the borrower and designated branch staff. (BOM).

-   Sales staff shall NOT be a part of the gold valuation.

-   After the Valuation Certificate has been issued by the valuator, the same shall be countersigned by the customer and the designated branch personnel (BOM) who will take the ornaments in safe custody and seal them in presence of the customer as per procedure defined in the Standard Operating Procedures (SOP).

-   The customer will sign the delivery letter of gold ornaments to be pledged and provide the same to the Branch Operations Manager (BOM).  The copy of it will be provided to the customer.      

-   The Valuation Certificate duly signed by the valuator and the designated branch personnel (BOM) shall be submitted by the Goldfinance Relationship Manager after it has been countersigned by the Branch Manager along with the Credit Line Proposal (CLP).

-    The video at the time of valuation of Gold shall be recorded on both the camera available in the branch as well as Teams.

-   The video being recorded on Teams will be carried out in the presence of a CAD personnel overseeing the valuation via Teams.

-   The Teams video version will be shorter and shall include the BOM introducing himself and speaking out his designation and employee code.

-   During the process of Evaluation of Gold & Gold Ornaments the Branch Manager/Branch Operations Manager (BOM) shall imitate a Call on Teams to the designated CAD officer.

-    The Call to be recorded will be the responsibility of Branch Staff (BOM).

-   The Call shall start from introduction from the Customer comprising of Name, Fathers Name CNIC, Source of Gold.

-    Customer shall provide a verbal statement certifying that he/she is the beneficial owner of the gold & gold ornaments being offered for pledge and that the pledge is being created upon the customer’s request as a security against the financing being provided to the customer.

-   Followed by Introduction of the Branch Staff with Name, Employee No. and Designation and Gold Smith Introduction of Name, CNIC , Fathers Name.

-   The Video shall proceed towards the Evaluation Process with empty sealed bags/Security Packets stating the serial numbers.

-   The Gold & Gold Ornaments to be ensured proper visibility in the video.

-   The Valuation weight and applicable Finance amount to be mentioned Clearly in the video.

-   The video will include the empty bag along with seal number and close with sealed bag/Security Packets with the seal number.

-   Gold & Gold Ornaments to be sealed in the Seal Bags stating and showing serial numbers.

-    The Call shall not exceed more then 4-5 minutes.

-    The Video to be extracted Via Link send on email via MS Teams.

-    The video to be uploaded on the same format on WRA and to be submitted along with the documentation and the longer Processing Video.

-   All BOMS to update their current picture on Teams to cross check whether the correct individual is introducing him / herself.

-   Incase of the Absence of BOM, BM should be carrying out the responsibilities stated above.

-   The handing over of the gold & gold ornaments as well as withdrawal/replacement of the same must take place under video coverage in which all parties to the transaction (customer, valuator, and concerned branch staff should be clearly visible).

-   Seal numbers are to be treated as security stationary and will follow the prevailing secured stationary SOP.

-   It is the responsibility of the BOM to review all processes and take possession of loan collateral directly from customer, etc. has to be followed meticulously.

-   A clear colored photograph of the borrower who is the beneficial owner of the gold/gold ornaments must be taken along with the security being pledged. The photograph must be legibly signed (with black marker) by the borrower in presence of the branch staff.

-    The gold/gold ornaments must be placed in the vault under the double lock by the Branch Operations Manager and the Branch Manager.

-   Articles relating to each financing must be kept in a separate properly sealed bag/Security Packets marked with the unique identification number of the financing and the name of the borrower.

-    For Gold Transfer Facility (GTF) - Individual shall present the facility ownership Certificate to the branch Gold RM. (NBP letter with details of the current Gold Finance facility availed).

-   Branch will log in the application and mark GTF in loan purpose section.

-    Branch will also mark “GTF” on top of the application and Data Entry will mark GTF in system while processing the application. A separate code on system (T-24) has been created.

-   CAD will evaluate the application as per Product Program criteria and ensure customer GTF details are properly marked in system. i.e., GTF segment, Loan type.

The following documents should be furnished for approval of the financing:

1. Checklist.
2. Customer Profiling.
3. CA Face Sheet.
4.  ORR Sheet.
5. Complete Application Form.
6. For GTF - Proof letter / RPS of availing the facility at the other Bank (NBP).
7. Delivery letter of gold/gold ornaments to be pledged.
8. Loan request from the borrower.
9. Loan Application Form (For SE).
10. Loan Closure Request.
11. For GTF Debit Authority.
12. For GTF Loan takeover request on Rs. 100/- Affidavit.
13. For GTF Loan Settlement/Pay-off Sheet (if available).
14. In case the applicant is Politically Exposed Person (PEP), the same will be routed to Compliance for their information, approval for the same may be required.
15. Photocopy of the Computerized National Identity Card (CNIC) issued by NADRA for individuals (including sole proprietors, partners or directors). The concerned Relationship Manager shall verify the genuineness of the CNIC through VERISYS.
16. Photocopy of NTN Certificate or undertaking from the borrower in case the NTN Certificate is not available.
17. Bank statement of JS Bank account where applicable.
18. KYC verified by the Branch Manager.
19. Biometric verification of the customer is to be done at branch and Branch Operations. Manager is required to sign. A dedicated screen must be available in the system to capture the borrower biometric verification.
20. Personal Net-worth Statement signed by the borrower (in case of individual).
21. Latest audited or management accounts in case of sole proprietors, partnerships, and companies (in case the exposure is up to / above Rs. 2.5 million).
22. In case of lending to small enterprises above Rs. 15 million, banks shall obtain from the small enterprises a copy of financial statements duly audited by a practicing Chartered Accountant or a practicing Cost and Management Accountant for analysis and record.
23. Other documents as required as per (Refer to Appendices).
24. The branch shall obtain documents as per the annexures attached for individuals, sole proprietorships, partnerships, and limited companies respectively.
25. Upon completion of documentation and establishment of Bank’s pledge on the security, the disbursement shall be made after issuance of Disbursement Authorization Certificate (DAC) by CAD.
26. The physical control and safe custody of the gold/gold ornaments is vested with the designated branch personnel while that for the credit / loan documents are vested with the Credit Administration Department (CAD).
27. Separate product code shall be allocated for GoldFinance which shall be intimated to all concerned.
28. Debit Card may be issued to individual customers of GoldFinance upon request for withdrawing cash or using it for purchases over point-of-sale terminals.

Post-approval Procedure:

Credit Application / package shall be sent to the delegated approving authority through the system (LOS / WRA). Upon approval of the facility by the concerned approving authority as per the approval matrix, an Offer Letter, setting out all the details of the facility sanction together with the repayment instructions shall be prepared by the Credit Administration Department (CAD) and sent to the proposed borrower by the concerned branch in duplicate for acceptance. The following requirements shall be met before disbursement of the financing limit.

1. An undertaking from the customer that the funds will be utilized for the stated purpose only.
2. Board Resolution in case of companies.
3. The Gold Relationship Manager shall obtain a written permission from the borrower authorizing JS Bank to mark lien on the securities beneficially held by him in consideration of the financing.
4. An undertaking from the borrower that he has no objection if the said security is offered in consideration of the financing facility. The same undertaking is to be obtained at the time of renewal of the facility.
5. It will be the responsibility of Central Credit Administration Department (CAD) to ensure that pledge has been marked on the gold/ gold ornaments being deposited as security against the financing.

- Not Applicable.