Public sector bank Allahabad Bank has decided to launch a gold loan scheme. The bank will be providing loan against the purchase of gold as collateral. This scheme will be launched all over the country.
At present the bank is providing this scheme in 5 states of South India – Andhra Pradesh, Kerala, Karnataka, Kolkata and Tamil Nadu. Recently the company has started this scheme across 25 branches in Kolkata. Soon the bank is planning to roll out the plan in Nagpur.
Gradually the bank will be launching the scheme all over the country, western and northern parts are their next goal. At present bank holds for gold loan accounts for approximately Rs 200 crore of its retail loan portfolio that stands at around Rs 19,000 crore. The bank will provide maximum of Rs 5lakh as the gold loan and will charge an interest of 12.5%.