JS Gold Finance: Enabling businesses everywhere!

JS Bank has just the right financing product for gold owners and entrepreneurs hoping to start or expand their businesses independently. This demands thorough rejoicing for people everywhere because entrepreneurs can now run without the need for major financial backing to succeed!

Nowadays, applying for loans is not as easy it sounds. One usually needs a backing of property to keep as collateral. But it’s time to rejoice for gold owners wanting to start or expand their businesses without putting their property at stake. JS Bank has the right product called, ‘JS Gold Finance’, which is a personalized financing solution that can convert your gold jewelry or assets into working capital for your business or investment needs of up to PKR 25 Million.

Simply put, if you have gold and don’t want to sell it in order to meet your needs, you can apply for a loan at JS Bank while keeping the gold as a collateral for a short- or long-term loan. This is quite a useful product for Small & Medium Enterprise owners looking for 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 shall be offered as a running finance facility as well as demand finance. It shall be offered for tenure of 3 years, renewable after expiry of the initial term upon borrower’s request.

Running Finance

Demand Finance

Facility 1 – based on Equal Monthly Installment:

In case of demand finance, the disbursement shall be affected in form of a single draw down into the customer’s financing account and the repayments will be made in form of equal monthly installments (EMI) including both principal and interest portions.

Facility 2 – based on Quarterly Mark-up Payment only, with principal payment at maturity:

In case of demand finance, the disbursement shall be affected in form of a single draw into the customer’s financing account. The facility can be renewed at the client’s request.

• For loan size less than or equal to PKR 299,999/- pricing would be fixed at 24%
• For loan size exceeding PKR 299,999/- pricing would be fixed at 22%

Pricing

• JS GoldFinance pricing with a 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: Mark-up rate of 1-Year KIBOR + 12 % (inclusive of prompt payment bonus of 2%).

• JS GoldFinance pricing with a financing limit PKR 300,000 & above

Running Finance: Mark-up rate of 3M KIBOR + 9 % (inclusive of prompt payment bonus of 2%).

Term Loan: Mark-up rate of 1-Year KIBOR + 9 % (inclusive of prompt payment bonus of 2%)

Term Loan Plus: Facility for existing JS GoldFinance Term Loan clients.

• Term Loan plus facility will be offered to existing JS GoldFinance term loan as a medium to enhance the current financing availed.
• Facility 1 customers with a minimum of a 6-month satisfactory relationship in Facility 1 of JS GoldFinance.
• Value of the gold will be assessed based on the current market price of gold.

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Parameters

Basic Eligibility Criteria

• Borrower(s) must be Pakistani citizen(s) bearing a valid CNIC or NICOP or a business including sole proprietorship, partnership or private limited company.
• For New Customers without JS Bank Account (NTB) – Borrower(s) are eligible for JS GoldFinance Term Loans Facility only.
• For Customers with JS Bank Account (ETB) – Borrower(s) are eligible for JS GoldFinance Running Finance and Term Loans Facility. Borrower(s) must be maintaining a relationship preceding the application for financing.

Eligible Security

• The financing against gold ornaments is allowed to the extent of net gold contents of the required fineness, as determined by the designated valuator (goldsmith)
• If the gold being offered as security is less than 21 karat in terms of purity as per the valuation, the same shall not be accepted as eligible collateral

Financing Limit

The maximum allowable financing limit shall not exceed 75% of the value of gold on the basis of the valuation rate prevalent at the time of valuation.

1. Minimum Limit – PKR 50,000
2. Maximum Limit – PKR 25,000,000

Terms and conditions

• Financing to be allowed to individuals or businesses for meeting investment or business needs.
• Any excess over limit shall not be allowed under this product category.
• The outstanding financing shall not be transferred from one product category to another under any case during the currency of the financing.
• Borrower who fails to pay the quarterly mark-up within 15 days after due date shall be closely followed up by the concerned Relationship Manager, after which, in case of no repayment, an auction will ensue.

JS Gold Finance is a promising solution for up and coming businessmen/women of Pakistan, as it aims to enable entrepreneurs with opportunities to find financial stability!