The Borrower(s) [which includes his/her heirs, legal representatives & permitted assigns] hereby agrees to abide and be bound by the following terms and conditions (“Terms and Conditions”)


  1. The Borrower has approached Vaibhav Nidhi India Limited (“THE NIDHI COMPANY” which expression shall, unless repugnant  to the context or meaning thereof, be deemed to include its successors and assigns) to avail of a loan against pledge of gold ornaments/ jewellery (“Loan”) which THE NIDHI COMPANY has agreed offer to the Borrower  basis this Terms and Conditions.
  2. All particulars/information given in the loan application form (“Application Form”) are true and complete and no material information has been suppressed/ withheld.
  3. The Borrower(s) acknowledges that THE NIDHI COMPANY shall have no liability for any consequences arising out of any erroneous details provided by the Borrower(s).
  4. The Borrower(s) authorizes THE NIDHI COMPANY to carry out such credit checks/ background verifications and at such time as it may deem necessary.
  5. The Borrower(s) understands that the sanction of the Loan is at the sole and absolute discretion of THE NIDHI COMPANY and upon the Borrower executing necessary security and other formalities as required by THE NIDHI COMPANY.


  1. The Borrower(s) promises, assures, undertakes & confirms that the Borrower(s) is the owner/joint-owner and is in possession of certain gold jewellery/ornaments (“Gold Security”) over which the Borrower(s) will create a first and exclusive charge by way of pledge in favour of THE NIDHI COMPANY by depositing the same with THE NIDHI COMPANY in a sealed packet to be kept with THE NIDHI COMPANY during the tenor of the Loan.
  2. The Borrower(s) agrees that THE NIDHI COMPANY shall be entitled, without furnishing any notice, to open such sealed packet during the tenor of the Loan and conduct investigation/s in connection with the quality of the Gold Security at the Borrower (s)’s cost at any time.
  3. The Gold Security and any other security furnished by the Borrower(s) to THE NIDHI COMPANY will be released only upon payment in full of the dues outstanding under Loan by the Borrower(s) to THE NIDHI COMPANY.
  4. In case the value of Gold Security falls lower than the required margin of THE NIDHI COMPANY as applicable from time to time, without prejudice to the right to declare an Event of Default (as defined hereinafter) under Clause 31 and 32 here under and/or to right to sell the Gold Security and/or exercise any other right or remedies available with THE NIDHI COMPANY hereunder or under law, the Borrower(s) shall, within 3 (three) days of a notice from THE NIDHI COMPANY in this regard, deposit with THE NIDHI COMPANY, such additional security, as may be required.
  5. The Borrower(s) knows that THE NIDHI COMPANY has made an arrangement for having taken appropriate insurance for the jewellery/gold taken from the Borrower(s) as collateral.
  6. It is further agreed that the Gold Security created shall also be security for all other monies that may be due and payable by the Borrower(s) to THE NIDHI COMPANY, on any account whatsoever, whether present or future, including any liability of the Borrower (s) as a surety or co-obligator either singly or along with any other person.
  7. The Borrower(s) confirms that the Borrower(s)’s title to the gold jewellery/ornaments deposited/to be deposited by as security is not fake/defective/or stolen by the Borrower(s) nor is challenged by any person in any manner nor is it spurious or of inferior quality as it has been acquired by the Borrower(s) from genuine sources, is the bonafide property of the Borrower(s) and no other person has any claim, lien or charge against it.


  1. The valuation of the Gold Security shall be done by an assayer authorized and appointed by THE NIDHI COMPANY and the Loan amount shall be determined by THE NIDHI COMPANY on the basis of the value of the Gold Security as set out in the valuation report supplied by the assayer (“Valuation Report”). Such value shall be subject to the market price of the Gold Security from time to time.
  2. The Borrower(s) confirms that the value of the Gold Security as determined by the assayer and set out in the Valuation Report is acceptable, conclusive and final and binding on Borrower(s).
  3. It is understood that by virtue of the Loan being sanctioned by THE NIDHI COMPANY to the Borrower , it  does not mean,  THE NIDHI COMPANY  confirms or accepts the  gold ornaments  pledged is to  be  of 22 carat purity. It is further  understood  that  the  valuation done  by THE NIDHI COMPANY  is only  an assessment done by THE NIDHI COMPANY in order to assess its   collateral value towards the Loan to be given to the Borrower, as such, THE NIDHI COMPANY is not at all responsible, accountable , bound  with regards to  purity of ornaments/gold.


  1. At the time of disbursal of the Loan to the Borrower and pledge of the Gold Security by the Borrower with THE NIDHI COMPANY, THE NIDHI COMPANY shall hand over a receipt to the Borrower acknowledging receipt of the Loan by the Borrower (“Gold Deposit Receipt”).

The Gold Deposit Receipt is to be produced by the Borrower upon repayment of the Loan and at the time of return of the Gold Security by THE NIDHI COMPANY to the Borrower.


  1. The Borrower agrees that THE NIDHI COMPANY shall have the absolute right to recall the Loan at any point of time, without assigning any reasons by writing a notice mailed/delivered to the Borrower(s) cancel in full or part of the Loan and demand the repayment of the loan. Upon such demand the Loan along with interest there on, any other charges (if any) becomes immediately due and payable by the Borrower(s).
  2. Upon maturity, the Borrower(s) shall either repay the Loan along with interest, and such any other dues as mentioned in Clause No.27, as are payable by the Borrower(s) to THE NIDHI COMPANY.
  3. The Borrower(s) may, before expiry of agreement date,  request  a renewal/enhancement of the Loan which THE NIDHI COMPANY may grant the Borrower at its sole and absolute discretion, subject to the continuation of the pledge over the Gold Security in favour of THE NIDHI COMPANY and provision of such other  security and in such form as THE NIDHI COMPANY  may require and such variations in the  rate  of interest as THE NIDHI COMPANY  may prescribe as per its policies prevailing at the time of such renewal/enhancement.
  4. At the time of renewal of the Loan whether during or after the expiry of the tenure of the Loan, the Borrower(s) may request THE NIDHI COMPANY to grant the renewal to the Borrower(s) on a higher/lower loan-to-value ratio or any other term which THE NIDHI COMPANY may allow at its sole and absolute discretion subject to payment of a such fee as THE NIDHI COMPANY may prescribe.


  1. The interest payable on the Loan shall be as mentioned in the Sanction Letter and/or Gold Deposit Receipt and will be charged on an actual/reducing basis and shall be computed on the basis of a year of three hundred and sixty- five days. Subject to prevailing policies of THE NIDHI COMPANY with regard to (a) the Loan amount applied by the Borrower(s) and sanctioned to the Borrower(s); and/or (b) loan- to-value, the Borrower(s) may be required by THE NIDHI COMPANY to pay the interest amount either on monthly, quarterly, half yearly, yearly basis. THE NIDHI COMPANY, without furnishing any notice, shall be entitled to deduct, prior to the disbursement of any funds under the Loan, from the total amount of funds made available to the Borrower(s) under the Loan, the total amount of interest payable with respect to the Loan, including interest tax (if any).
  2. The Borrower(s) understand/s and agree/s to pay the interest at monthly/quarterly/ Half yearly, yearly or such intervals as decided and agreed by THE NIDHI COMPANY. The interest amount to be paid in cash. The Borrower(s) is/are required to produce all the receipts of the interest paid at the time of expiry of the loan. The Borrower(s) shall be liable to pay a minimum applicable rate of interest.
  3. It is understood, by the Borrower that  for default  in repayment of interest/principal as it may fall due  as per  loan terms, additional  penal charges at the  @  3% a. are applicable  on principle amount  from the  day of default  for the  period  the amount is in default.
  4. THE NIDHI COMPANY shall give notice of change in the interest rate and terms and conditions either by email, SMS, correspondence, display the same on its website/ branch offices or any other manner as THE NIDHI COMPANY may deem fit and such change(s) will thereupon  apply to and be binding on  the  Borrower(s). The Borrower(s) agrees  and  accepts  that  it is  his/ their prime responsibility to  keep  himself/ themselves update  regarding any such change in interest rate and additional/penal interest rate  or any other  bench mark rate regardless of receipt of such notice or communication or otherwise.


  1. The Borrower(s) agrees that the Loan may be prepaid, in whole or in part, by the Borrower(s) with the prior written consent of THE NIDHI COMPANY.
  2. After consideration, THE NIDHI COMPANY may grant on such conditions as it may deem fit, including without limitation the payment of prepayment or part payment charges as the case may be, as stipulated by THE NIDHI COMPANY, which prepayment and/or part payment charges may be applied and collected by THE NIDHI COMPANY either at the time of maturity or closure or renewal, whichever is earlier. Without prejudice to any other rights that THE NIDHI COMPANY may have under law, in case of non-payment of any dues, the Borrower(s) shall be liable to pay additional interest/default interest at such rate as may be prescribed by THE NIDHI COMPANY on the entire Loan plus the interest due on that date.


  1. The Borrower(s) shall pay all costs, charges and expenses, including stamp duty, VAT and legal costs, proportionate insurance cost on an actual basis and other charges and expenses which may be incurred in preparation of any documents related and/or incidental to the Loan, as also for the enforcement or attempted enforcement of the security created.
  2. The Borrower(s) authorizes THE NIDHI COMPANY to debit /credit the Borrower(s)’s account(s) kept with THE NIDHI COMPANY towards any charges/servicing the Loan.


  1. The Borrower(s)  authorizes  THE NIDHI COMPANY  to  carry out  the  RTGS/NEFT  transaction  as  per  detail  mentioned  in  the  application.  The Borrower(s) understands that RTGS/NEFT request is subject to the Reserve Bank of India (“RBI”) regulations and guidelines governing the same.  The Borrower(s) further acknowledges that THE NIDHI COMPANY accepts no liability for any consequences arising out of erroneous details provided by the Borrower(s).


  1. The Borrower(s)(s) represent(s) and warrant(s) that:
  2. The Borrower shall observe and perform all its obligations under these Terms and Conditions.
  3. The Borrower(s) are/is citizen(s) of India.
  4. The Borrower shall not leave India for employment or business or a long stay or permanently (without first repaying the Loan) or without the prior permission of THE NIDHI COMPANY.
  5. The Borrower(s) shall utilize the Loan solely for the purpose stated in the Application Form and will not be used for any speculative, unlawful, illegal or anti-social purpose.
  6. The Borrower(s) shall perform and be bound by all the covenants/conditions set out herein, in the agreement governing terms & conditions of Gold Loan and any further conditions as may be prescribed by THE NIDHI COMPANY.
  7. The Borrower also represents that the Borrower does not appear on the Reserve Bank of India’s (“RBI”) list of defaulters and Export & Credit Guarantee Corporation’s (“ECGC”) caution lis Further, if any such proceeding is initiated by any of such departments, THE NIDHI COMPANY shall be promptly informed of the same. In the event,  THE NIDHI COMPANY  discovers that  the  said representation was incorrect at a later stage, or in case of non reporting of any subsequent  proceedings, THE NIDHI COMPANY shall be fully empowered  to take any criminal action/ other suitable proceedings against the Borrower. Further, the Borrower’s names does not appear on any lists, notifications or directions issued by the RBI with respect to anti money laundering or combating financing of terrorism or any sanctions lists published by the United Nations Security Council with respect to terrorist related activities.


  1. THE NIDHI COMPANY may, without assigning any reason and upon written notice mailed or delivered to the Borrower(s) cancel in full or in part the Loan and demand repayment thereo Upon such notice, any dues shall become forthwith due and payable by the Borrower(s) to THE NIDHI COMPANY.
  2. The following events shall constitute events of default under this Agreement (“Events of Default”), upon the occurrence of which any dues shall become immediately due and payable by the  Borrower(s) to THE NIDHI COMPANY  and further  enable THE NIDHI COMPANY  to enforce  the  Gold Security and any other security furnished hereunder  and sell the same:
  • One of the triggers for default would be where collateral coverage for THE NIDHI COMPANY exceeds 90% in terms of outstanding principal and accumulated interest, in the event of the prices of gold falling sharply. THE NIDHI COMPANY in the first instance will give a notice to the Borrower to provide additional collateral to cover up margin within 3 days from the date of such notice, failing which the same shall be construed as event of default permitting THE NIDHI COMPANY to go ahead with liquidation of collateral.
  • If the Loan is not repaid on the date of maturity
  • In the event of non-servicing of interest on the due date
  • If any representations or statements or particulars made in the application form for the Loan (“Application Form”) are found to be false, misleading or incorrect
  • Upon detection of any systemic fraud in relation to the quality of the gold pledged by the Borrower, by the THE NIDHI COMPANY
  • If the value of the gold security falls lower than the required margin of the THE NIDHI COMPANY as applicable from time to time, due to change in market price or any other reason.
  • If it is discovered owing to reasonable  suspicion on the  part  of THE NIDHI COMPANY  that  there  is collusion  between  the  assayer and the Borrower resulting in fraudulent and erroneous valuation of the gold security.
  • In the event of insolvency, failure in business, commission of an act of bankruptcy by the Borrower.
  • There exists any circumstance which in the opinion of THE NIDHI COMPANY jeopardizes THE NIDHI COMPANY’s interest;
  • The Borrower committing default under any other terms and conditions of THE NIDHI COMPANY


  1. Upon the occurrence of an Event of Default, THE NIDHI COMPANY shall be entitled to sell the Gold Security in the open market by auction.
  2. The auction shall be conducted by THE NIDHI COMPANY as per the auction policy approved by the Board of Directors of THE NIDHI COMPANY.
  3. The auction shall be conducted by THE NIDHI COMPANY by giving one advertisement in daily newspapers in vernacular language and another advertisement in a national daily newspaper, after giving the Borrower(s) a notice of 15 business days which the Borrower(s) agrees is a reasonable period for the purposes of Section 176 of the Contract, 1872.|
  4. The proceeds so realized from the sale of the Gold Security shall be utilized towards the repayment of dues under the Loan.
  5. In the event that the proceeds so realized are insufficient to meet the amount of dues, THE NIDHI COMPANY may take such other and further actions as it may deem necessary to realize the balance amount from the Borrower(s).
  6. In case of more than one Borrower(s), the Borrower(s) agree that their liability shall be joint and several.


  1. Any notice (including notice of sale of Gold Security) shall be sent to the Borrower(s)’s address mentioned in the Application Form.
  2. Such notice may be sent via
  • Registered Post Acknowledgement Due (RPAD); or
  • Courier; or
  • Hand delivery; or
  • Fax: or
  • Sent via email at the email address mentioned in the Application Form; or
  • Short Message Service (SMS) to the Borrower(s)’s mobile phone mentioned in the Application Form.
  1. Such service shall be deemed to have been effected, in case of delivery by RPAD/Courier, post the expiry of the 2nd day of such posting, in case of delivery by hand on the date on which it is delivered and in the case of email, short message service (SMS) or fax on receiving the delivery report of the same.


  1. In addition to any general lien or similar rights to which THE NIDHI COMPANY may be entitled by law, THE NIDHI COMPANY may at any time and without notice to the Borrower(s) combine or consolidate all or any of the Borrower(s)’s accounts with any liabilities to THE NIDHI COMPANY and set off or transfer any sum or sums standing to the credit of any one or more of such accounts in or towards satisfaction of any of the Borrower(s)’s liabilities to the THE NIDHI COMPANY on any other  account or in any other  respect,  whether  such liabilities be actual or contingent, primary or collateral and several or joint.
  2. THE NIDHI COMPANY shall have the right to stipulate any other and further terms and conditions that it may deem fit at any time prior to or after the grant of the Loan, which shall be binding on the Borrower(s).
  3. THE NIDHI COMPANY may hedge the price risk by entering in to option contracts on the underlying Gold Security and the Borrower agrees to pay the respective proportionate premium in respect of the options contracts.
  4. All rights of THE NIDHI COMPANY stipulated these Terms and Conditions shall be in addition to the rights, powers and remedies available to THE NIDHI COMPANY under law.
  5. THE NIDHI COMPANY reserves the right to retain the photographs and documents submitted with the Application Form and will not return the same to the Borrower.
  6. In the event of loss of the gold ornaments due to theft or any natural calamity like fire, floods, earthquake etc which is pledged with THE NIDHI COMPANY, the liability of the THE NIDHI COMPANY is limited to replacing the lost gold ornaments (which were pledged with THE NIDHI COMPANY) with equivalent weight and purity excluding stone  / diamond value as specified in valuation report  of THE NIDHI COMPANY  and agreed  to by Borrower while accepting the terms of the Loan. THE NIDHI COMPANY will provide the amount in cash equivalent to the value of the Gold Security as on date. Gold Security value on that date  is calculated by way of agreed weight and purity on the date  of pledging and multiplying same by current date price as per published d THE NIDHI COMPANY will not consider the value of stone or diamond embedded in jewellery / ornaments at the time of loss replacement.



(i) The delay in exercising or omission in exercising any right, power or remedy accruing to THE NIDHI COMPANY upon any default under these Terms and Conditions, security documents or any other agreement or document in relation to the Loan shall not impair any such right, power or remedy nor shall be construed to be a waiver thereof or any acquiescence in such default. The action or inaction of THE NIDHI COMPANY in respect of any default or any acquiescence by it in default shall not affect or impair any right, power or remedy of THE NIDHI COMPANY in respect of any other default.
(ii) The waiver of any default or delay under these Terms and Conditions by THE NIDHI COMPANY or the Borrower shall not constitute a waiver of any subsequent delay or default of a similar or different nature.


Any provision of these Terms and Conditions which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction be ineffective only to the extent of prohibition or un-enforceability but that shall not invalidate the remaining provisions of these Terms and Conditions nor affect such provision in any other jurisdiction.


THE NIDHI COMPANY may provide the following facilities to the Borrower which will enable the Borrower through a POS terminal:

  • Statement of Account (SOA) view
  • Balance inquiry
  • Repayment schedule
  • NOC clearance
  • Foreclosure Statement

All claims, disputes, differences or questions of any nature arising between the Borrower and THE NIDHI COMPANY with respect to these Terms and Conditions, whether during or after the termination of these Terms and Conditions, in relation to the construction, meaning or interpretation of any term used or clause of these Terms and Conditions or as to the rights, duties, liabilities of the Borrower and/or THE NIDHI COMPANY arising out of these Terms and Conditions, shall be referred to the arbitrator appointed by THE NIDHI COMPANY. The Borrower and THE NIDHI COMPANY mutually agree and confirm that the arbitration proceedings shall be conducted in accordance with the Arbitration and Conciliation Act, 1996 as amended from time to time and the proceedings shall be held at Jaipur and shall be conducted in Hindi or English. Pending the giving of the Award including Interim Award, the Borrower shall be liable to perform its obligations under these Terms and Conditions.


These Terms and Conditions shall be governed by and construed in accordance with the laws of India.


The courts in Jaipur shall have non-exclusive jurisdiction over any matter(s) arising out of relating to these Terms and Conditions and/or any transactions contemplated herein. Provided however, that nothing contained herein shall affect the right of THE NIDHI COMPANY to commence legal proceedings or otherwise proceed against the Borrower in any other jurisdiction.


  1. The Borrower shall indemnify and hold THE NIDHI COMPANY saved and harmless from time to time and at all times from and against any and all loss, damage, claims, expenses, charges, demands, penalties or other costs and consequences which may arise or result from granting of the Loan to the Borrower or performing any service to the Borrower there  under or otherwise arising out of, in connection with, in relation to or pursuant to these Terms and Conditions or the Loan provided hereunder  including, without limitation, payment for any loss and damage which THE NIDHI COMPANY may make, suffer or sustain by reason or on account on sanctioning the Loan and shall upon request appear and defend at the Borrower’s own cost and expense any action, suit or other proceedings which may be brought against THE NIDHI COMPANY in connection therewith. The Borrower shall further  be liable to indemnify THE NIDHI COMPANY in respect  of any and all expenses incurred by THE NIDHI COMPANY in enforcing or attempting to enforce these Terms and Conditions including legal fees and disbursements on a full indemnity basis.|


  1. The Borrower(s) further authorizes THE NIDHI COMPANY to make any enquiries with any other finance company or registered credit bureau regarding the Borrower(s)’s credit history with them.
  2. THE NIDHI COMPANY is also authorized to provide details of the Borrower(s) credit history to any other finance company/registered credit bureau.
  3. THE NIDHI COMPANY shall have the right to make disclosure of information relating to the Borrower(s) to the Credit Information Bureau of India (CIBIL) and/or any other governmental/regulatory/statutory or private agency as required under law from time to time. All information and data furnished by the Borrower to THE NIDHI COMPANY from time to time shall be true and correct.
  4. The Borrower(s) authorizes & gives consent to THE NIDHI COMPANY to disclose, without notice to the Borrower(s), any information furnished by the Borrower in the Application Form(s)/related documents executed/to be executed in relation to the facilities availed from THE NIDHI COMPANY, to THE NIDHI COMPANY’s other branches, subsidiaries, affiliates, credit bureau, rating agencies, service providers, financial institutions, governmental/regulatory authorities or third parties for KYC information verification, credit risk analysis,  or for other  related purposes that the THE NIDHI COMPANY may deem fit.
  5. The Borrower(s) waives the privilege of privacy and privity of contract.


  1. The Borrower(s) confirms having received, read and understood these Terms and Conditions and hereby accepts the same unconditionally and agrees that the same may be changed by THE NIDHI COMPANY at any time and the Borrower will be bound by such amended terms and conditions.
  2. The Borrower(s) hereby confirms that the official of THE NIDHI COMPANY has read and translated accurately the aforesaid terms and conditions in his/their vernacular language and that the Borrower(s) has completely understood the same.
  3. The Borrower(s) hereby confirms that he has received a copy “Agreement Governing Terms & Conditions of Gold Loan”.

Preliminary Terms & Conditions subject to change.