JS Gold Finance: Enabling businesses everywhere!
JS Bank offers the right financing product for gold owners and entrepreneurs who want to start or grow their business independently. This demands great joy for people all over the world, as entrepreneurs can now operate without needing major financial support to be successful!
These days, applying for a loan is not as easy as it sounds. We usually need a backing of property to be kept as collateral. But it’s time to rejoice for gold owners who want to start or grow their business without putting their property on the line. JS Bank has the right product called “JS Gold Finance” which is a personalized finance solution that can convert your jewelry or gold assets in working capital for your business or your investment needs up to PKR 25 million.
Simply put, if you have gold and don’t want to sell it to meet your needs, you can apply for a loan from JS Bank while still holding the gold as collateral for a short or short loan. long term. It is a very useful product for small and medium business owners looking for a quick liquidation of their assets without having to sell them.
Let’s look at the details of the product at hand.
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Type of facilities available
JS Bank Gold Finance will be offered as a regular funding mechanism as well as as demand finance. It is offered for a period of 3 years, renewable after the expiration of the initial term at the request of the borrower.
Financing on demand
Installation 1 – based on an equal monthly payment:
In the case of sight financing, the disbursement will be made in the form of a single withdrawal from the client’s financing account and repayments will be made in the form of equal monthly payments (EMI) comprising both principal and interest.
Installation 2 – based on the quarterly increase payment only, with payment of the capital at maturity:
In the case of sight financing, the disbursement is made in the form of a single withdrawal from the client’s financing account. The installation can be renewed at the customer’s request.
- For a loan amount less than or equal to PKR 299,999, the price would be set at 24%
- For a loan amount greater than PKR 299,999, the price would be set at 22%
- Pricing of JS GoldFinance with a funding limit of PKR 299,999 or less:
Current finances: 3M KIBOR mark-up rate + 12% (including prompt payment premium of 2%).
Term loan: Increase rate of KIBOR 1 year + 12% (including prompt payment premium of 2%).
- JS GoldFinance pricing with a funding limit of PKR 300,000 and above
Current finances: Mark-up rate of 3M KIBOR + 9% (including prompt payment premium of 2%).
Term loan: 1-year KIBOR mark-up rate + 9% (including 2% prompt payment bonus)
Term loan Plus: Facility for existing clients of JS GoldFinance term loans.
- A Term Loan Plus facility will be offered to the existing JS GoldFinance Term Loan as a means of enhancing the current funding being used.
- Clients of Facility 1 with a satisfactory relationship of at least 6 months in Facility 1 of JS GoldFinance.
- The value of gold will be assessed based on the current price of gold in the market.
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Basic eligibility criteria
- Borrowers must be Pakistani citizens with a valid CNIC or NICOP or a business that includes sole proprietorship, partnership or limited liability company.
- For new clients without a JS (NTB) bank account – Borrowers are only eligible for the JS GoldFinance term loan facility.
- For clients with a JS Bank Account (ETB) – Borrowers are eligible for the current financing and term credit facility from JS GoldFinance. The borrower (s) must have a previous relationship to request financing.
- Funding against gold ornaments is permitted to the extent of the net gold grades of the required title, as determined by the appointed expert (silversmith)
- If the gold offered as collateral is less than 21 karats in terms of purity according to the appraisal, it will not be accepted as eligible collateral.
The maximum allowable funding limit must not exceed 75% of the value of the gold based on the valuation rate in effect at the time of valuation.
- Minimum limit – 50,000 PKR
- Maximum limit – 25,000,000 PKR
Terms and conditions
- Financing to be granted to individuals or companies to meet investment or business needs.
- Any exceeding of the limit will not be allowed in this product category.
- Under no circumstances will the outstanding funding be transferred from one product category to another during the currency of the funding.
- The borrower who does not pay the quarterly mark-up within 15 days of the due date will be closely monitored by the relevant relationship manager, after which, in the event of non-repayment, an auction will ensue.
JS Gold Finance is a promising solution for emerging businessmen / women in Pakistan as it aims to empower entrepreneurs with opportunities to find financial stability!