Closure of Gold Loan accounts

Closure of Gold Loan accounts / release of Jewellery to Legal Heirs in case of deceased customer

  • The Legal Heir of the deceased may be requested to pay the Bank’s dues within 15 days of submission of death certificate/intimation of demise of borrower.

  • He / She needs to submit a letter of request for closure of loan along with list of documents mentioned below:

  • Affidavit-Cum-Indemnity Bond to be executed on stamp paper as per respective stamp duty act (Refer Stamp duty charges for POA, Affidavit, & Indemnity) by the legal heirs.

  • Legal Heir Certificate/ certificate from such authorised government officer certifying the legal heirs’ details and relation with the deceased customer is mandatory in all cases  

  • Affidavit-Cum-No Objection Certificate from legal heirs 

  • Relationship proof with borrower (Notarized)

  • Attested Death Certificate (Notarized)

  • Legal Heir’s Id & Address proof (Notarized)

  • Borrowers ID proof and address proof (Notarized)

  • The legal heirs shall deposit the Loan closer amount directly in the Loan account of the deceased borrower after taking necessary accordance from the respective Branch Head

  • KYC document of all legal heirs to be taken 

  • Post receiving the request letter & all specified document detailed above, the legal heir will be allowed to transfer the foreclose amount either from existing CASA with us or through cash deposit/transfer of fund from other bank A/c via electronic mode of transfer in Loan account

 

Loan Repayment stages in case of a deceased customer

Step 1

Legal Heir contacts GLO of the branch, where the Gold Loan of the deceased customer was disbursed

Step 2

Provides all necessary documents as per existing process 

Step 3

Credits the loan foreclose amount in the deceased customer’s loan A/c

Step 4

The amount is credited through Cash / Cheque / RTGS/NEFT / IMPS mode directly in the customers Loan A/c


N.B: After receiving request for deceased settlement of Gold loan borrower, the  same will be communicated to Branch Head & Asst. Branch Head by the GLO, for necessary action at their end for other liabilities & Asset A/c.

Note:

  • The closure documents need to be recorded at branch level

  • The branch shall do proper due diligence in this matter, inquire with neighbours, relatives for identifying the legal heirs of the deceased borrower, branch should be satisfied that the ornaments / jewellery may be handed over to the legal heirs as per the procedure laid down in Death Case Process.

  • Ensure to verify whether the borrower has mentioned the name of the individual intent to release the gold ornaments/jewellery & coins as a Legal Heir in the application form, for any mismatch consent of the person whose name is provided in the application form has to be held in record.

  • GLO should take approval from Asst Branch Head / Branch Head & Regional Manager for releasing the jewellery. The list of documents collected should be mentioned clearly in the approval request.

  • Legal Heir should provide all necessary documents within 7 days from the date of deceased intimation.