Private sector bank, Federal bank, has added a new feature in its gold loan segment. From now on, it will provide overdraft facility against gold loans to its customers in this segment. In the previous quarter, the bank recorded high growth rates in its gold loans segment.
According to the Kochi based bank, this is a first of its kind product in the country. The new product, named ‘Easy Gold', provides customers with a debit card which can be used by them to withdraw cash from an ATM or they can use the loan amount via any Point of sale (PoS) terminal. In addition to this, the bank is also providing a cheque book with this product, which can be used by a customer to get up to 75 percent of the market value of their pledged gold.
Interest rates will be charged only on the amount withdrawn by the customer and the maximum loan tenure will be three years. Loan amount of up to Rs. 75, lakh will be sanctioned by the bank.
Talking on the matter, Managing Director and Chief Executive of the bank Mr. Shyam Srinivasan said that he expects the bank to maintain a growth rate of 15 percent taking into consideration the increase of 25 percent in gold loans in the last quarter.