Application conditions of gold pledge loan
1. The pledgor must be approved and registered by the administrative department for industry and commerce, hold a business license and pass the annual inspection, and engage in the processing, wholesale and import and export trade of gold and other metals and their products;
2. The pledgor has a stable and legal source of income and the ability to repay the principal and interest on schedule;
3. The pledgor's financial status is normal and its production and operation are stable;
4. The pledgor must designate the sole agent to apply for gold trading. If the pledgor has handled the gold trading business through other members of the gold exchange in advance, he must cancel his account at other members and go through the formalities of opening an account and transferring money in the application bank before going through the formalities of gold pledge;
5. The pledgor has the decision-making power to issue a written document agreeing to pledge, and authorize the representative to sign the pledge contract, and can issue the representative's identity certificate, power of attorney and signature sample;
6. The pledged gold must be the gold owned by the pledgor and deposited in the gold exchange, and the pledged gold must be the standard gold that meets the trading requirements of the gold exchange;
7. The pledgor shall provide a deposit of not less than 15% of the loan amount;
8. Other conditions required by the bank.
Supplementary information:
Gold mortgage loan is a way of borrowing with gold as collateral. This kind of loan has a long history. For many years, South Africa, a gold producer, often used gold as collateral to borrow money from financial institutions in western countries.
In 1970s, Italy and Portugal used gold as collateral to borrow money from other countries due to the balance of payments deficit and foreign exchange shortage. The providers of loans are large commercial banks in Britain, Switzerland, the Federal Republic of Germany and the United States. The borrower is usually the central bank of the borrowing country. The process is that the lender and the borrower negotiate, and the latter will transport the mortgaged gold to the former's vault and get a loan at the same time. The borrower must repay the principal and interest after the loan expires, and at the same time recover the mortgage. The mortgage price of gold is generally significantly lower than the market price. For example, the gold mortgage price of a six-month loan is generally 25% lower than the market price.