The Manipal based Syndicate Bank's gold loans segment has become hugely popular in the islands of Andaman and Nicobar. The bank did a business of Rs. 15 crore in the segment the previous fiscal.
Gold quite popularly used to avail loans in Andaman and Nicobar Islands and the Lakshwadeep islands. Apart from Syndicate bank, a number of other banks have branches there including State Bank of India, HDFC Bank, Indian Overseas Bank etc.
As the bank is doing good business in the gold loans segment, it plans to increase its ‘gold loan shoppes' to double the present number of such shoppes throughout the country. At present, it has 60 such shoppes and has targeted to have atleast 100 of these centers. The bank also provides customers overdraft facility against gold.
In the islands, including Lakshawdeep and other islands, the bank has a total of 12 branches. It is reported that these areas have a considerable population of South Indians and Bengalis who buy gold and then use it to avail loans against them. Availing gold loans is also popular with the locals there.