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India : KOLKATA: ALLAHABAD BANK launched Gold Loan Scheme at its GARIAHAT BRANCH

July 5, 2014

The state-owned lender Allahabad Bank has announced its strategy to make nationwide launch of gold loan scheme.

The bank plans to extend credit against the security of gold throughout India.

The public sector bank, as part of this process, has shortlisted about 25 branches in and around the city of Kolkata to launch the gold loan scheme.

Speaking to the media, Allahabad Bank s General Manager (Retail Credit) Ashok Chatterjee stated, A large part of our gold loan business is concentrated in south India. Now, we are planning to expand in other parts of the country as well. We have started in the east and will expand further.

The Kolkata-headquartered bank on Thursday has introduced its gold loan scheme at one of its city-based branch in Gariahat.

Chatterjee has revealed that the company will set up key infrastructure in these selected branches so that they can extend credit against gold in line with the scheme.

The bank official has also disclosed that the bank has fixed an attractive rate of interest in order to magnetize more retail clients.

Chatterjee revealed, Often retail customers look for quick credit and domestic gold could be used for availing such credit.

He further said, We are offering an interest rate of 12 per cent, which is lower than what is charged by various private companies. The loan tenure is for five years.

Non-bank financial companies (NBFCs) levy an interest rate of about 18% for their gold loan schemes.

According to Chatterjee, Allahabad Bank s current gold loan portfolio is worth around Rs 200 crore and the lender aims to surpass this figure in the present financial year (FY2014-15). Moreover, sluggish credit demand from the corporate sector has prompted the PSU entity to expand its portfolio in retail segment further.

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Source: TendersInfo (India)

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