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TERMS & CONDITIONS
Please read the terms and conditions carefully before applying for loan. The terms and conditions, once signed by the customer, assume legally binding force as to any loan facility obtained by the customer (hereafter referred as borrower) from Paul Merchants Finance (P) Ltd. (hereafter referred as Lender) having its registered office at Ground Floor, SCO 829-830, Sector 22 -A, Chandigarh-160022. Read the terms and conditions set forth below carefully and affix your signatures as a token of your acceptance thereof.
The borrower do hereby agrees and binds himself/herself on the following terms & conditions:-
Definition:
"Asset(s)" means the gold ornament/jewellery deposited by Borrower with Lender in order to avail the Loan, more specifically described in the Loan Application.
"Borrowers Dues" means and includes the outstanding principal amount of the Loan, interest, charges, all fees, costs, charges, expenses, legal costs, stamp duty and all other monies whatsoever payable by the Borrower to Lender in accordance with these terms and conditions.
In consideration of Lender having agreed to grant/granted to the Borrower the Loan, the Borrower irrevocably undertakes and confirms the acceptance of the following terms and conditions:-
- Any person can apply for a Gold Loan from the Lender, provided, in case of individual borrowers, the borrower must be a citizen of India and must be aged more than 18 years.
- Based upon the particulars given in the Loan Application Form and documents produced and after assessment of the asset produced by the borrower before the Lender, the Lender has sanctioned to the borrower, a loan more particularly described in the 'Pledge Form'. (Note: Gold biscuits, bars, coins and 24 carat ornaments of any type are not acceptable as Security)
- The quantum of loan shall depend on the purity of the gold in terms of carats in the jewellery offered by the borrower as collateral security and the loan scheme chosen. The minimum tenure of loan is 15 days and maximum tenure of loan will be 12 Months. In the event, the borrower desires to close the loan before 15 days, the borrower shall be liable to pay minimum of 15 days interest whatsoever. The Claim of the borrower as to the gold offered as security, in future will be limited up to the net value declared in the Pledge Form. Upon the completion of the tenure of the loan, the loan shall be considered as inactive and the borrower will have to either close the loan by payment of all the borrower dues outstanding till the day of closure or get the said loan renewed by applying for the Loan as per the new terms and conditions as applicable. In the event of delay in the closure or renewal of the inactive Loan by the borrower, then the borrower shall be liable to pay the additional charges, as applicable from time to time, for such delayed closure or renewal. Inactive loans shall automatically be deemed a non-performing asset, as per the definition of NPA.
- The Loan amount shall be disbursed to the Borrower net of all applicable initial payments towards administration fees, premium, transaction/processing charges etc. Lender may in its discretion make disbursement of the Loan by cheque/cash/bank transfer, subject to the applicable statutory restrictions.
- It is further agreed that Lender shall be entitled to require the Borrower to execute such additional documentation as may be required at any time in future as may be required in order to give effect to any provision of these terms and conditions or any other understanding with Borrower and the Borrower do hereby undertake to execute all such documentation as and when required by Lender without any objection or delay. Lender has the rights to change or amend any terms, the changes shall be intimated to the borrower through notice to be sent through any permitted mode including SMS. The same shall also be available on the website of the company, which will be deemed to be a due service of notice in this regard on the borrower.
- The applicable interest rate has been determined by taking into account the risk and costs involved in loans under each scheme/slab. While the due date for payment of interest is as per Maturity date mentioned in the pledge form, the Company offers incentive to the customers paying interest on a shorter periodicity. Accordingly, the rate of interest shall be lower in case periodicity of payment of interest is shorter and it shall be increased progressively with increase in periodicity of payment of interest. For the purpose of calculation of interest, a year will be reckoned as 360 days.
- The borrowers do hereby undertake and confirm that the gold ornaments pledged by him/her legally belong to him/her and is not stolen and are not spurious. If it is proved otherwise, the Borrower will be responsible for all damage/loss incurred by the lender in such case. By pledging the gold with the lender, the borrower hereby acknowledges and confirms that he/she is the absolute owner and in lawful possession of the gold and is duly competent to pledge the same with the lender.
- By sanctioning the loan, the lender does not confirm or accept the gold ornaments pledged to be of 22 carat purity. In case the lender finds that the pledged gold ornaments are of low quality or spurious in nature, the Borrower is bound by such findings of the lender and undertakes to repay the loan and interest and other Borrower Dues immediately and to make good the loss caused to the Lender, failing which the Lender has the right to initiate legal proceedings to recover such losses, and to keep the security with it until all the dues are cleared by the borrower.
- The employees/auditors of the lender will have the right to verify the purity of the ornaments offered as collateral security adopting the standard appraisal methods as laid down by the lender, at the time of disbursement of the loan and then whenever such verification is warranted. The Borrower acknowledges and agrees that in such an event the gold ornaments pledged by him/her may undergo some damage which is a normal occurrence, for which he/she will never raise any objection/dispute in future.
- The Loan shall be utilized by the borrower only for legitimate purposes as declared by the borrower in the Loan application and shall not be utilized for purchase of gold in any form including primary gold, gold bullion, gold jewellery, gold coins, units of Exchange Traded Funds (ETF), units of gold mutual funds and shall also not be utilized for speculative, improper or unlawful/purposes/ activities. However, in any case, the borrower alone will be responsible/answerable for any type of utilization of the loan proceeds.
- The Loan shall be repaid as per the Rate of Interest schedule as agreed in the Pledge Form. Payments made by cheque/DD shall be subject to realisation. In case of cheque dishonour, the applicable bank charges plus GST shall be applied on this account in addition to other penalties as per these . In case of repayment through bank transfer, no payment shall be accepted from Current Accounts as interest or principal payments.
- The lender has the right to recall the loan at any time before the expiry of the period for which the loan is sanctioned if in the opinion of the lender the loan has been availed through misrepresentation, falsification or suppression of facts or for any other reason as deemed fit by the lender. The decision of the lender in this regard shall be final and binding on the Borrower. If so demanded, the Borrower will be bound to clear the entire loan together with interest and redeem the ornaments pledged, failing which it will be treated as an Event of Default on the part of the borrower and the Lender will be entitled to take all the necessary steps in accordance with these terms and conditions.
- The Loan shall be repaid through cash/cheque or demand draft or such other method as maybe prescribed by Lender as per statutory norms from time to time and the Borrower shall comply with such instruction, without demur or delay. The principal and interest can be remitted by the borrower or his authorized representative. Based on the loan schemes the borrower is allowed 0-7 days grace period to pay the interest, after which his loan is automatically shifted to the next interest rate slab as per Rate of Interest Schedule given in the Pledge Form.
- The Borrower or Borrower's authorized representative should bring the gold loan receipt every time he makes repayment of principal/interest and it has to be surrendered in original to the Lender at the time of final payment and redemption of the pledged items. In case of loss of receipt, the borrower can redeem/close/renew the pledged securities/ornaments only by giving declaration (affidavit) on Rs.100/- Non-Judicial stamp paper (with notarization) as per the format prescribed by the lender and after completing other formalities as prescribed by the Lender.
- The Borrower or his nominee can redeem the gold ornaments pledged, provided the entire dues on the loan are fully cleared to the satisfaction of the Lender. The nominee can redeem the security only in case of death of the borrower, on production of death certificate of the borrower and a sufficient documentary evidence of his/her being the nominee of the deceased borrower. The Lender can allow the Nominee to redeem the gold ornaments on behalf of the borrower in other deserving cases subject to the sole discretion of the lender and after the Nominee completes other formalities as prescribed by the Lender.
- The repayment/payment of Loan shall not be affected, impaired or discharged by insolvency or death of the Borrower and the Borrower and his/her legal heirs shall always liable to the lender all Borrower dues.
- The Borrower shall have the option to remit interest monthly/quarterly in order to avail the incentive on early payments and depending upon the periodicity of payment of interest, the loan shall automatically get shifted to the next interest slab as per Rate of Interest Schedule given in the Pledge Form, which the Borrower has understood and agreed. In case of default, the customer shall also be liable to pay overdue Interest as applied by the lender along with cost of recovery.
- Borrower understands that the Lender reserves the right to change the rate of interest at its discretion at any time taking into consideration all relevant factors such as cost of funds, risk factors, market conditions etc. The Borrower also confirms that he/she has taken this loan after carefully considering the terms and conditions including rate of interest and shall not dispute the same at any time in future on any ground whatsoever.
- In the event of pre-payment of the loan or any part thereof by the borrower, the amount will be first adjusted towards costs/charges and interest and then towards the principal loan amount without any pre-payment charges.
- The loan will be considered NPA (Non-Performing asset) as per the applicable guidelines issued by the Reserve Bank of India from time to time. If the Loan becomes NPA, the ornaments pledged will be sold in public auction as deemed fit by the lender as per its Auction policy of the Company, as amended from time to time, and the proceeds will be appropriated towards the loan together with up-to-date Borrower Dues, auction charges, legal costs, all expenses incurred in relation to disbursement of loan and recovery thereof.
The Auction process will be as follows:-
- The auction shall be conducted in the same town or taluka in which the branch that has extended the loan is located. NBFCs can however pool gold jewellery from different branches in a district and auction it at any location within the district, subject to meeting the following conditions:-
- The first auction has failed
- The Company shall ensure that all other requirements of the extant directions regarding auction (prior notice, reserve price, arms-length relationship, disclosures, etc.) are met.
- While auctioning the gold the Company will declare a reserve price for the pledged ornaments. The reserve price for the pledged ornaments shall not be less than 85 percent of the previous 30 day average closing price of 22 carat gold as declared by the Bombay Bullion Association Ltd. (BBA) or the historical spot gold price data publicly disseminated by a commodity exchange regulated by the Forward Markets Commission and value of the jewellery of lower purity in terms of carats shall be proportionately reduced.
Auction policy of the Company can be accessed on the website of the Company at https://paulmerchantsfin.com, for more details. In case of deficiency, the Borrower will be liable to make good such deficiency and if there is any surplus available after all adjustments, the same will be returned to the Borrower. Such sale effected by the lender will not be disputed by the Borrower in any manner whatsoever and the Lender will not be liable for any loss incurred to the Borrower on such sale. The Borrower hereby forgoes and waives off all his/her rights and claims in favour of the lender absolutely and unconditionally in this regard.
- Where the Loan is provided to more than one Borrower, the liability of the Borrowers to repay the Loan along with all borrower dues including costs, charges, expenses, legal costs, etc. shall be joint as well as several and the word Borrower in these terms and conditions shall mean to include all Borrowers and their Legal Heirs.
- The Borrower shall bear, pay and reimburse to Lender, all charges relating to cheque bouncing, cheque representation, administration charges, Legal costs, interest tax, goods and service tax, all kinds of duties ( including stamp duty), sales tax/VAT and taxes (of any description as may be levied from time to time by the Government or other authority) and all other cost and expenses whatsoever in connection with (a) application for and the grant and repayment of Loan; (b) recovery and realization of the Loan together with interest; (c) enforcement of Security; (d) clearance of arrears of all taxes and any other charges and levies of the Government in respect of Asset(s) and (e) insuring the Asset(s).
- The lender has the absolute right to sell, transfer, assign and securitize all the rights, titles and interest in the security that accrue to the lender in this loan transaction to another individual or entity or to borrow/take loan/create additional security by creating charge on it. The lender, if required, shall also have the absolute right to give as a security all documents, deeds or ornaments given as security by the borrower for this loan transaction, to Borrow money/avail loan without prejudice to the rights of the Borrower. The lender has the absolute right to transfer the security ornaments between their offices/branches.
- An event of default shall be deemed to have occurred if the Borrower (a) commits a breach of any of these terms and conditions , or (b) fails to pay the Dues or any other amount due and payable to lender on the due date, or (c) has made any misrepresentation to lender or (d) the Borrower's title to the security/asset(s) or any part thereof is defective, or challenged by any person, in any manner or (e) the security/asset(s) or any part/s thereof is found to be spurious, fake or of inferior quality or (f) if Security for the Loan is in jeopardy or ceases to have effect or becomes illegal, invalid, unenforceable or otherwise fails or ceases to be in effect or (g) the Borrower has been declared insolvent or is subjected to insolvency proceedings and/or (h) If any circumstance or event occurs which is prejudicial to or impairs or imperils or jeopardize or is likely to prejudice, impair, imperil, depreciate or jeopardize the Security given by the Borrower or any part thereof.
- In the event of the diminution in the value of the gold ornaments pledged by the borrower, the lender is entitled to ask the Borrower to deposit additional security or to make good the depletion in value by depositing requisite amount with the lender. The lender's decision in this regard will be final and in the event of failure of the borrower to do the needful, it will be treated as an Event of Default on the part of the borrower and the Lender will be entitled to take all the necessary steps in accordance with these terms and conditions.
- Upon occurrence of any of the events of default, lender without prejudice to its rights and remedies available under these terms and conditions or otherwise, shall send a prior notice of 15 days in writing to the Borrower calling upon the Borrower to accelerate the payment and to honour all the dues, demands payable under these terms and conditions; failing which lender shall have right to sell the security/asset. In case the Borrower fails to make the payment of the dues in terms of such notice, lender shall, at the cost of the Borrower sell the Security/ies/Assets as per its policy and the borrower shall bear all auction charges, legal costs, all expenses incurred in relation to disbursement of loan and recovery thereof. In case of deficiency, the Borrower will be liable to make good such deficiency and if there is any surplus available after all adjustments, the same will be returned to the Borrower.
- The Borrower do hereby irrevocably authorize and entitle the Lender and its Authorized Representatives to act on the Borrower's behalf, at the Borrower's sole risk and cost and to take all necessary steps, actions and proceedings as lender deems fit to safeguard the interests of lender, and/or to sell the Asset(s)/Security, receive all monies payable under or upon enforcement of Asset(s)/Security and to give a valid receipt therefore on behalf of the Borrower and to apply such proceeds in a manner as deemed fit by lender towards repayment / payment of the Borrower's Dues or otherwise.
- Lender shall not in any way be liable/responsible for any loss or damage to, the Security/Asset(s) on any account whatsoever whilst the same are in the possession of lender or during any inspection process conducted by the appraiser in determining the aforesaid value or by reason of exercise or non-exercise of any rights and remedies available to lender as aforesaid. Lender shall not be liable for any loss or damage or diminution in value sustained/realized thereby or for any loss or diminution in value of, the Security/Asset(s) on any account whatsoever by reason of exercise or non-exercise of any rights and remedies available to lender as aforesaid.
- The Borrower shall also not be entitled to raise any claim against lender on the grounds that a larger sum or amount might or ought to have been received from the security/asset(s) or be entitled to dispute the liability of the Borrower for the balance amount of Borrower's Dues after adjustment thereof in accordance with these terms and conditions or for the rate of interest levied by the lender, which the borrower has accepted after due consideration of all the circumstances and market scenario.
- Lender shall also not be responsible for any loss caused to the Security/Asset by reason of an event of force majeure. For the purposes of these terms and conditions event of force majeure shall mean any event beyond the reasonable control of the lender, including without limitation to fire, flood, cyclone, earthquake, Acts of God, strike, labour disruption, theft, robbery, dacoity, burglary, war (whether declared or undeclared), riots, insurgency, terrorist attacks, government restrictions or any other event beyond the reasonable control of lender. It is further clarified and agreed that the liability of lender shall arise only if a destruction loss or damage has been directly caused to the Security/Asset by the willful act or omission on the part of lender or its duly authorized officers and employees and in that case, the liability of the lender is limited to replacing of the lost articles with equivalent weight and purity as declared in the Pledge form.
- Notwithstanding any of the provisions of the Indian Contract Act, 1872, or any other applicable law, or any terms and conditions to the contrary contained in these terms and conditions, lender may, at its absolute discretion, appropriate any payments made by the Borrower in accordance with these terms and conditions and any amounts realized by lender by enforcement of security or otherwise, towards the Borrowers dues payable by Borrower to lender and/ or any other terms and conditions whatsoever between the Borrower and lender and in any manner whatsoever.
- The Borrower declares that:
- The Borrower has all legal right and full power to accept these terms and conditions and to create security interest in the said Security/Asset in favour of lender, and no other person or entity is, actually or conditionally entitled to possession, use or control, as any interest in the said Security/Asset.
- The Security pledged is the exclusive and absolute, lawful property of the Borrower and no other person has any right, interest or claim over the same;
- The Assets(s) do not form part of any stolen goods;
- The Borrower has absolute right to deal with the Asset(s) and is entitled to sell/create security on or over or dispose off the Assets(s) including pledging the Asset(s) for the purpose of the Loan. The borrower acknowledges that lender has acted purely on the statements and assurance given by the borrower without making any independent enquiries, on its own.
- In the event that the Borrower is a member/the Borrowers are members of a Hindu Undivided Family or HUF, the Security forms part of personal assets of the Borrower and does not form part of the assets jointly held and/or owned, by the said HUF.
- There is no action, suit or proceedings against the Borrower/Borrowers pending before any court of law or before any other tribunal, judicial, quasi-judicial or administrative authority, which might affect the Borrowers/Borrowers ability to perform its/their obligations hereunder.
- The Borrower hereby agrees that lender, as it may deem appropriate and necessary, be entitled to disclose all or any:
- Information and data relating to the Borrower;
- Information or data relating to these terms and conditions and/or the Asset(s) Securities, if any, furnished by the Borrower in favour of lender;
- Obligations assumed /to be assumed by the Borrower in relation to the Loan, furnished by the Borrower for any other credit facility granted / to be granted by lender;
- Default, if any, committed by the Borrower in discharge of the aforesaid obligations, to the Credit information Bureau (India) Limited (“CIBIL”), Reserve Bank of India (RBI), Government authorities, regulatory authorities and any other agency authorised in this behalf by the RBI, CIBIL, Government. CIBIL RBI, Government Authorities/Regulators and/or any other agency so authorized may use and/or process the aforesaid information and data disclosed by lender, in any manner as deemed fit by them and may furnish the processed information and data or products thereof prepared by them, to financial institutions and other credit grantors or registered users, as may be specified by RBI, RBI, CIBIL, Government authorities in this behalf.
- Borrower understands that the loan is sanctioned in compliance of the Terms of “Fair Practice Code” of the Lender published on the Lender's website: www.paulfincap.com.
- In case of any change in these terms and conditions, the same shall be updated on Lender's website, which will be deemed to be a due service of notice in this regard on the borrower. It is the responsibility of the Borrower to review these Terms periodically for updates / changes and any such change by the Lender will automatically become part of these terms and conditions.
- In case the borrower has any grievance about any of the aspects concerning the loan availed against the security of gold ornaments, he/she shall first bring it to the notice of the Branch Manager concerned. If the Branch Manager could not resolve the grievance, the borrower shall bring take up the matter with the Territory Manager concerned whose address is displayed in the Branch premises. If the Territory Manager also could not resolve the grievance to the satisfaction of borrower, the borrower may write to the Grievance Redressed Cell of the Company at this address:- The Grievance Redressal Cell, Paul Merchants Finance (P) Ltd, SCO 829 - 830 Sector 22 - A, Chandigarh - 160022.
- In case the due date for repayment of loan/ interest falls on any non-working day, then the repayment shall be made by the borrower on the day, immediately preceding that day.
- Any notice, request, demand or other communication under these terms and conditions shall be in writing, delivered by hand or courier or by registered post, to the address as indicated by the respective parties in loan application or to such other address as either party may in writing hereafter notify to the other party or be intimated by SMS or email registered with the lender.
- If there is any change in the address or phone number given in the application, the same should be intimated by the borrower to the lender by registered letter or through hand delivery failing which it will be presumed that notices sent at the address given in loan application is duly received by the Borrower, irrespective of its acknowledgement or non-receipt.
- The parties hereto expressly agree that all disputes arising out of and/or relating to these terms and conditions including any collateral document shall be referred to arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as may be amended, or its re-enactment, by a sole arbitrator, appointed by lender. The costs of such arbitration shall be borne by the borrower or otherwise as determined in the arbitration award. If a party is required to enforce an arbitral award by legal action of any kind, the party against whom such legal action is taken shall pay all reasonable costs and expenses and attorney’s fees, including any cost of additional litigation or arbitration taken by the party seeking to enforce the award. The place of arbitration shall be Chandigarh. The Courts in Chandigarh shall have exclusive jurisdiction to try and entertain any dispute proceedings arising out of these terms and conditions.
- In case of any instance where the Borrower is not satisfied with the services provided by the Lender or has any other type of grievance, he/she may highlight such instances or grievance to the email ID of the Company info@paulfincap.com and may follow the process outlined in the customer grievance procedure available on the website of the Company at https://www.paulmerchantsfin.com/customer-grievance-procedure.html:
- INDEMNITY:- Borrower agree to indemnify, defend and hold the Lender and its directors and Representatives and all related parties harmless against any and all kinds of claims, losses, damages, and liabilities, costs and expenses, including and without limitation legal fees and expenses, arising out of or related to use or misuse of the Loan, any violation of these Terms and conditions, any falsification in these Terms and conditions or any breach of the representations, warranties, and covenants made by the borrower.
- The Borrower declares that the information and data furnished by the Borrower to lender under these terms and conditions including schedules and annexure are true and correct. The borrower further undertakes to furnish the information to lender immediately in case of any change in the information.
By signing these terms and conditions, the borrower agrees to opt for receiving the SMS and Emails about products of the lender and its associate/sister concerns and collection calls.
The above terms and conditions and contents of other loan documents have been explained to me in my mother tongue, which I have understood, agreed and accepted unconditionally.
Additional Charges
Apart from interest on the gold loan, following additional charges are also to be borne by the customer:-
| SL. No. |
Type of Charges |
Applicable Charge |
| 1. |
Tenure Expiry Charge |
2% (P.A) of Loan amount calculated on the number days after expiry of loan |
| 2. |
SMS charges applied at the end the time closure of Loan |
Rs.13/- |
| 3. |
Loan Closure Charge |
Rs.100/- |
| 4. |
Convenience Charge at the time of closure of loan |
Rs.4.72/- |
| 5. |
Notice Charges |
Rs.50/- |
| 6. |
Processing Fee |
0.50% of Loan Amount (applicable in select Schemes) |
*All charges are inclusive of GST
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