FAQ

With attractive schemes, easy repayment options and lowest interest rates, Akhand Jyoti Multipurpose Urban Nidhi Ltd. , one of the leading Nidhi Companies in Parbhani Maharashtra offers a hassle-free experience to avail Loan.

Who is eligible to avail Loans? What security has to be provided?

Anyone who is the member and owns gold ornaments can avail the loan. (Note: Minors are not eligible.) To obtain the loan, you need to submit your gold jewellery (within the Karat range of 18 to 24 k) at your nearest Akhand Jyoti Multipurpose Urban Nidhi Ltd. branches. The loan amount will be sanctioned on the basis of gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the intention of valuation.

What are the documents required for taking loan against gold ornaments? Are there any end-use restrictions involved?

To abide by the KYC (Know Your Customer) Policy of RBI and approved KYC norms of our Company, we insist to produce one document of identity proof(Such as Ration Card with photo, Driving License, PAN Card, Voter ID card, Passport, Aaadhar Card etc.) and one document of residential address proof (Such as Telephone Bill,Electricity Bill, Water Bill, Bank account / Credit Card Statement, Municipal / Local/House Tax Bill / Receipt, Authentic Rent Receipt / Lease Document, Letter from from reputed employer/ Public Authority).

There are no end-use restrictions in Loans.

What is the rate of interest charged on such loans? How is the interest calculated?

Our base rate of interest is 12 percent. However, depending upon how high the loan to value (LTV) is, additional interest (amounting to risk premium) ranging from 4-8 percent is charged over and above the base rate. The interest and risk premium is applicable only for the days the money was actually utilised. There are no prepayment penalties. Simple interest is charged, which the borrower has to pay at the specified periodicity or at the closure of loan, whichever is earlier. The interest rate is fixed and calculated on a reducing balance basis.

What is the tenure of such loans?

Our Loan products have a maximum tenure of one year. However, depending upon how high the LTV is opted, members are required to service the interest at specified periodicities. For example, in schemes where LTV is high, interest would have to be serviced monthly.

How long will it take for me to get my Loan?

Once you submit your Application Form, Demand Promissory Note and supporting documents, we shall give approval within a matter of minutes provided everything is in order. All loan approvals are at the sole discretion of the Branch Head.

Are the pledged gold ornaments safe and secure with MGNL?

We know that these gold ornaments are very precious and favorite to you. So we guarantee you that it will be in our safe hands in strong cash safes inside a strong room built as per the standards and specifications applicable to commercial banks. The pledged gold ornaments are also insured for full value. Moreover, security personnel and modern electronic surveillance technology are deployed to protect your beloved gold ornaments.

Do I require a Guarantor or Introducer for availing Loan? Do I need to open an account with a Bank?

No. Unlike other loans, there is no need for either a Guarantor or an Introducer and there is no need for a bank account.

How do I repay my Loan?

Member needs to repay the loan at the end of the loan tenure only. You do not have to go through hassle of servicing EMIs every month. However, interest has to be serviced periodically, as per the terms of sanction. Repayments can be made in cash and interest will be paid in any branch of MGNL after 30 days of pledge date.However, the pledged ornaments will be released/handed over only at the branch from where the loan was originally availed.

Is there any maximum and minimum limit for availing Loan? What about the tenure of the loan, lock-in period, and prepayment penalties?

MGNL Loans may be availed for any amount between Rs.1,000 to a maximum of Rs.1.00 crore. Loans are available for periods ranging from one month to one year. Our Loans do not have any lock- in-period and there are no prepayment penalties. You can repay earlier than the scheduled as you desire.

Whether partial payments of loan and interest are accepted?

Members are free to repay part amount of loan and/or accrued interest thereon at anytime in order to reduce the interest burden on the loans. Interest is calculated on daily product basis on the amount of loan outstanding at the end of the day.

How can customers settle the loan account and get back the gold ornaments?

The member has to submit the pawn ticket (given to them at the time of taking loan) to the counter staff at the branches with a request to close the loan account. The staff will enquire into your account and inform you about the outstanding loan amount (Principal + Interest accrued). By depositing the outstanding loan amount with up to date interest, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.

What happens if the loan amount is not repaid on the due date?

In case loan amount is not repaid on or before the due date, penal rate of interest is charged on the loan amount.

Is there a possibility of damage to the ornaments at the time of appraising?

Appraising is done in the presence of the member only by our well experienced staff. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.

What are the things that people should keep in mind while taking a Loan?

The most important things from the customer’s perspective are transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. There should be no hidden costs and no nasty surprises. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any malfunctions after the jewellery have been pledged. The choice of loan products should cover the range from high LTV (loan to value) to low LTV, with appropriate variations in interest rates. At MGNL, you will find that all these aspects are well taken care of.

What makes MGNL different from other providers of Loans?

In addition to the transparency, security and range of its Loan products (as mentioned above),MGNL distinguishes itself from others primarily on the basis of the ease with which Loans can be availed from our branches. The only requirement is that borrowers present themselves at our branches with the jewellery and with a valid ID and address proves. Our streamlined and centralized systems and well- sketched procedures promise that Loan can be availed in a matter of minutes. Also, we offer the highest LTV to those interested in availing the maximum amount of loan against their jewellery. We are able to perform this because of our elongated experience in Loan business and with the heartfelt effort of our well experienced and professionally qualified managerial team; we have acquired the capability to handle the extra risk involved.

What are some of the Loan schemes that MGNL offers to suit its members from different income groups?

Our Loan schemes fall broadly into two categories:
a) High loan to value: These schemes offer the maximum amount of loan per Gram. At the same time in keeping with the extra risk, the interest cost to the borrower is higher.
b)Low interest rate: In this category, the interest rates are lower but the Loan to Value (LTV) is also comparatively less.

Our products are well tailored not only to the income group of the customer, but to relevant considerations like how much loan customers would like to avail against jewellery, and their comfort levels with respect to the interest rate and periodicity of repayment of interest and principal. Incidentally, Loans can be availed at our branches for amounts as low as Rs.1000 and as high as Rs. 1 Crore.

In case of default, when will be the gold jewellery be auctioned off?

In case of persisting overdue, as per our Auction Policy approved by the Board of Directors, the ornaments will be auctioned off only after giving sufficient notice to the borrower and public notice in News Paper. MGNL serves a minimum of three reminders to its overdue accounts. We also send periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction.

Whom do I contact for more details?

Kindly get in touch with the staff at the branch nearest to where you are located. Information about branches convenient to you can be easily obtained from our website by following this link:
For addressing your complaints/grievances, feel free to contact:

How are Loans different from other loans like Personal Loan or Credit Card?

Loan is sanctioned by accepting the gold ornaments as pledge from the members of the Company. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant.
It is true that Loans, like personal loans or credit card borrowings, are often used for short term household necessities. However, in terms of the cost and ease of availing the loan and the convenience in repaying, Loans are the good deals. Personal loans and credit card borrowings are unsecured loans and therefore it may carry a higher rate of interest. Moreover, personal loans require considerable effort in documentation formalities and they oblige you to an inflexible EMI schedule for repayment.
Loans on the other hand, are cheaper and can be availed in minutes. You can also stretch the repayment to your convenience; the only requirement is that you have to service the interest periodically. Credit card borrowings may be easier to avail than even Loans but the interest rates are prohibitive and veiled and it can lure people into a debt-trap.