Frequently Asked Questions (FAQ’S)
Anyone who is a member and owns gold ornaments can avail the loan.
To obtain the loan, you need to submit your gold jewellery (within the Karat range of 18 to 24 k) at your nearest SMSO branch. The loan amount will be sanctioned on the basis of gold valuation by duly appointed Jewel Appraisers which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.
To abide by the KYC (Know Your Customer) Policy of RBI and approved KYC norms of our Company, we insist to produce the following:-
- Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill).
- Document of identity proof (Such as Aaadhar Card & PAN Card, Smart Ration Card, Driving License, Voter ID card, Passport etc.)
- Two passport size photographs.
- Two hundred rupees, Rs.100/- for Membership fees and Rs.100/- for opening Savings Bank Account.
There are no end-use restrictions in gold loans.
There are different schemes to suit your requirements. The interest varies from 10% (0.84% paise) per Rs.100/- per month to a maximum of 12% (Rs.1/-) Rs.100/- per month.
Our gold loan products have a maximum tenure of one year. Whatever be the Loan to Value (LTV), interest needs to be remitted monthly.
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.
We know that these gold ornaments are very precious and favourite 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.
Unlike other loans, there is no need for either a Guarantor or an Introducer. You have to open a Savings Deposit Account with Nidhi. The loan amount will be credited to your Savings Deposit Account from where you can withdraw the amount. As there is limit on cash withdrawals, it is preferred to have a Bank account for the transfer of loan.
Loans can also be paid by means of Cheques (or) Demand Drafts, NEFT AND RTGS Modes. You have to provide your Savings Bank details the name of the branch you hold the account, the IFSC Code.
You are aware that the tenure of the loan is 12 months. You can repay the Principal within 12 months in equitable instalments or as you wish from as low as Rs.100/- . However, interest has to be serviced monthly, as per the terms of sanction. Principal and interest can be paid at any branch of SMSO. However, the pledged ornaments will be released/handed over only at the branch from where the loan was originally availed. Any amount can be repaid by way of Cash / Cheque / RTGS / NEFT.
SMSO PERMANENT Nidhi Ltd Gold loans may be availed for any amount between Rs.1,000 to a maximum of Rs.15 Lac. Loans are available for periods ranging from one month to one year. Our Gold loans do not have any lock- in-period and there are no prepayment penalties. You can repay earlier than the schedule as you desire.
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.
The member has to submit the Passbook (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.
In case, the loan amount is not repaid on or before the due date, that is, after the tenure of 12 months and even after serving the reminders, the jewels will be sold in Public Auction. The bid amount will be appropriated against the outstanding.. If the bid amount is higher than the outstanding, the remaining amount (after appropriation to the outstanding) will be returned to the borrower. Where the bid amount is lower than the outstanding, the shortfall will be collected from the borrower.
For receiving reminders periodically, members are requested to update their address and phone numbers as and when they change them.
Appraising is done in the presence of the member only by our well experienced Appraisers. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.
The most important thing from the customer’s perspective is 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 malfunction after the jewellery have been pledged. At SMSO PERMANENT Nidhi Limited, you will find that all these aspects are well taken care of.
In addition to the transparency, security and range of its gold loan products (as mentioned above), SMSO PERMANENT Nidhi Ltd distinguishes itself from others primarily on the basis of the ease with which gold 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 proof. Our streamlined and centralized systems and well- sketched procedures, promise that gold loan can be availed in a matter of minutes. Also, we offer the highest Loan to value (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 gold 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.
Whatever be the quantum of loan whether it is a High loan to value or Low loan to value, the interest applicable is the same.
Further, 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, gold loans can be availed at our branches for amounts as low as Rs.1000 and as high as Rs. 15 Lac.
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. SMSO Permanent Nidhi Ltd 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.
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: www.smsonidhi.com
For addressing your complaints / grievances, feel free to contact:
TO MD/ HO
S M S O Permanent Nidhi Limited
# 37 Car Street, Triplicane, Chennai – 600 005 (India).
Phone : (044) – 2844 2139, 2844 5422, 2844 5084
In case, the borrower dies, the nominee (or) any of his/her Legal heirs has to produce the following documents in order to claim the jewels.
First, the nominee (or) the Legal heir of the borrower (deceased) has to inform the Nidhi in writing, the death of the borrower. After that, he/she has to submit the following documents:-
- Copy of Death Certificate of the borrower
- Original Jewel Loan Passbook issued by the Nidhi
- Claim form issued by the Nidhi
- Legal Heirship Certificate (in case the borrower had not nominated anyone).
- No objection letter from other Legal Heirs (where there are two or more Legal heirs).
- Jewel Loan Closure Receipt.
Any Indian Citizen who is above 18 years of age can become a Member for availing any Service.
A Registered Mortgage Loan is a Loan given on the security of a constructed property.
Anyone who is a member, satisfying the Know Your Customer Norms and owning a constructed property within City or CMDA Limits can avail the loan. (Note: Minors are not eligible).
Documents required for Know Your Customer Norms:-
- Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
- Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
- Three passport size photographs.
- Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.
The following documents are required for availing Mortgage Loan:-
- Sale Deed of the property to be mortgaged Parent document of the property
- Encumbrance Certificate for 25 years
- Planning permit
- Property tax receipt – up to date
- Electricity bill – paid up to date
- 2 Photographs of the Applicant
- Photographs of the property – one in an elevated view and one covering the inner rooms.
- Patta issued by the concerned authority
- Any other document required to be submitted after scrutiny of the above
- A legal opinion charge of Rs.2, 500/- is collected.
- Application form.
Mortgage Loans are available with tenures ranging from 5 years to a maximum period of 7 years.
The maximum amount that can be lent is Rs.15 Lac and the minimum is Rs.1 Lac. The tenure is for a period of 5 years and 7 years. There is no lock-in period. The pre-payment penalty will be 1% on the outstanding.
The following are the interest rates:-
- The interest rate is 14.5% per annum.
- The interest is applicable for both 5-year and 7-year tenure.
- Repayment has to be made in Equated Monthly installments.
The following table shows the amount to be remitted for a 5-year and 7-year Loan.
| Loan Amount | 5-year tenure | 7-year tenure |
|---|---|---|
| 1,00,000 | Rs.2,350 | Rs.1,900 |
A processing fee of 1% on the loan amount is charged. Further, GST @ 18% on the processing fee is to be paid.
Once you submit your Application Form, and supporting documents, we shall send it to our Legal Advisor for verification and scrutiny. On Approval from the Legal Advisor, the documents are put up before the Board for disbursement.
Yes. A Guarantor is required from whom a Guarantee Deed is obtained. You need to have or open a bank account with a cheque facility.
You are aware that the tenure of the loan is 60 months and 74 months.. You have to submit Post-dated cheques to the value of the EMI amount. The cheques will be deposited on the 22nd of every English Calendar Month.
A cheque return charge (as charged by the bank) will be collected. Further, if the payment is made in the successive month, a compound interest @ 24% per annum on the accumulated interest will be recovered.
In case of persisting overdue, a notice will be sent to the borrower to his address. Even then, if you fail to pay the overdue, a Preliminary Auction will be sent. Even then, if you do not respond, your property will be brought for sale under Public Auction to appropriate the dues.
As per our Auction Policy approved by the Board of Directors, the property will be auctioned off only after giving sufficient notice to the borrower and public notice in News Paper. SMSO Permanent Nidhi Ltd 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
As regards Mortgage Loan, partial payment of Interest and Principal is not allowed. You have to pay according to the EMI…
The member has to submit the Passbook (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 documents to the customer against his/her acknowledgement.
Yes, You can avail loan against deposits:
- Fixed deposit — Loan amount to a maximum of 80% of the Deposit amount. (75% for TDS members)
- Recurring Deposit – Loan on total amount of subscription paid (80% of subscription paid).
- Cumulative Deposit– Loan amount to a maximum of 80% of the Deposit amount. (75% for TDS members)
You can avail loan on a fixed deposit receipt up to a maximum of 80% of the Deposit. For Recurring Deposit too, you can get a loan of 80% of the subscription paid. The interest on both the loans will be charged at plus 1% above the contracted interest.
Suppose, you have invested a deposit of Rs.10,000/- at an interest rate of 8% per annum, you are eligible to raise a loan up to Rs.8,000/-. The interest rate would be 9% per annum.
The following documents are needed to avail a deposit loan.
- The Term Deposit Receipt (or) the Recurring Deposit Passbook duly discharged on a one-rupee revenue stamp.
- An application requesting loan.
- A promissory note.
(Please note that the Deposit Receipt (or) the Recurring Deposit Passbook will be retained by the office till the loan is closed).
For Fixed Deposits, you need not pay the interest. The interest payable to your deposit would be adjusted against the loan account.
For Recurring Deposits, you need to pay the interest periodically.
For both the loans, the tenure is the period for which the deposit has been made. You have to close the loan account before the maturity of the deposit.
In that case, on the maturity date, the Deposit proceeds would be appropriated against the loan outstanding. The balance amount will be paid to you.
First of all, you have to satisfy the KYC Norms floated by the RBI.
Anyone who is a member, satisfying the Know Your Customer Norms (KYC) and producing the following documents can make a deposit,
Documents required for Know Your Customer Norms:-
- Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
- Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
- Three passport size photographs.
- Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.
After fulfilling the above requirements, you have to fill-up two forms one for opening a Term Deposit and the other for opening a Savings Bank Account.
A sum up to Rs.20, 000/- can be made by cash. Any amount above Rs.20,000/- is accepted in the form of Cheques.
Yes. Even for deposits made by way of cheque, the interest commences from the Cheque date.
In the case of cash deposit (i.e. cash deposited up to Rs.20, 000/-, you can deposit receipt immediately.
For Deposits made by Cheques, the Deposit Receipts will be prepared only on the date of realization of the cheque. You will be intimated when the Deposit Receipt gets ready, (or) it will be despatched by courier.
Further, you can make the deposits in the following modes:-
- As an Individual
- As Either or Survivor
- As Anyone or Survivors in order
- As jointly
Yes. You can nominate a person for your deposits. The Nomination can be registered.
The age limit for a Senior Citizen Term Deposit is 60 years (completed).
Interest on Term Deposits is paid through the following modes:-
- By directly crediting the depositor’s account into banks through RTGS.
- By crediting the Savings Deposit Account of the Depositor at SMSO.
No. Only monthly payment of interest is available.
You can claim Income Tax exemption up to a maximum interest payout of Rs.5, 000/- per year.
Yes. You can claim exemption if your interest payout exceeds Rs.5, 000/- per year by the following means:-
- If you are a senior citizen, by furnishing form 15-H quarterly.
- If your income is purely from the interest earned on deposits and that you don’t have any other income, you can furnish form 15-G and claim exemption.
For others, Interest amount is subject to Tax Deducted at Source (TDS) as per provisions of Section 194-A, of the Income Tax Act, 1961. As such, TDS at the rate of 10% will be deducted from the total interest payout.
No. Term Deposits and Recurring Deposits cannot be pre-closed before it has completed 3 months. Only after completion of 3 months a Term Deposit can be pre-closed
For a period up to 6 months, you cannot claim any interest for the Deposit.
The eligible interest rate will be 4.0% p.a from the rate that prevailed on the date when the Deposit was made.
The excess payout of interest will be deducted from the maturity proceeds.
It will take at least 10 days to issue a duplicate deposit receipt, provided all the necessary documents submitted are in order.
First of all, you have to satisfy the Know Your Customer Norms. You have to submit the following documents.
- Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
- Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
- Four passport size photographs.
- Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.
- You have to submit the Locker Application form.
There are four sizes of lockers available. They are:-
- Large
- Big
- Medium
- Small
The following are the deposits to be paid:-
| Size | Caution Deposit in INR |
|---|---|
| Small | 10,000 |
| Medium | 20,000 |
| Big | 30,000 |
| Large | 60,000 |
You can make the deposit depending on the size you choose.
You can make the deposit through the following means:-
- Up to Rs.20,000/- by cash (or)
- By cheque drawn in favour of SMSO Permanent Nidhi Limited
- By Demand Draft drawn in favour of SMSO Permanent Nidhi Limited
A Caution Deposit Receipt for the amount you deposit will be issued to you. It will contain your locker details and your deposit amount.
No. Not necessary.
No. The deposits do not carry any interest.
You can get the deposit refunded on closing of the Locker.
No. No rent is levied. It is free of rent.
Safe Deposit Lockers can be opened in the following modes:-
- Self (Individual)
- Either (or) Survivor
- Jointly
- Any one (or) Survivor
During Business Hours: i.e. from 9.30 A.M to 01.00 P.M and from 01.30 P.M to 4.30 P.M.
- You have to give in writing that you are closing the locker account.
- You have to return the Caution Deposit Receipt for refund.
- You have to return the keys.
- You have to ensure that the locker is empty.
- You have to give a letter in writing.
- You have deposit a sum of Rs.3, 000/- for opening the locker and issue of a new key.
For further details, please contact the branch near to you.
First you have to enrol as a member after satisfying the KYC Standards of the RBI.
For KYC Standards, you have to furnish the following :
- Copy of your PAN Card for Identity Proof
- Copy of your Aadhar Card for Address Proof
- Copy of Family Ration Card (or)
- Copy of Lease Deed of the Property in which you reside (or)
- Copy of Telephone Bill
- Four Passport Photographs
- Two hundred rupees, one hundred rupees for membership enrolment and one hundred rupees for opening Savings Deposit Account.
Anyone who is a member and who has attained the age of 18 can open a Safe Deposit Vault Account.
No. Minors can’t open a Safe Deposit Vault Account.
Safe Deposit Lockers are available in Large, Big, Medium and Small sizes.
No. No Interest will be paid for the Deposit. It will be treated as Caution Deposit. It is fully returnable on surrender of the Locker.
No rent is needed to be paid.
You can visit the Section Safe Deposit Lockers for getting information.
A Deposit Receipt to the value of the Caution amount will be issued to you.
Safe Deposit Lockers can be operated in the following modes :
- Individual
- Either or Survivor
- Any one or Survivor
- Jointly
Yes. Nominations are accepted and Registered for Individual Accounts.
Business hours :
Morning: 09:00 A.M. TO 01:00 P.M.
Lunch: 01:00 P.M. TO 01:30 P.M.
Afternoon: 01.30 P.M. TO 04.00 P.M.
Sunday Morning: 09:00 A.M. TO 12:30 P.M.
FRIDAY’s –
Holiday