Syndicate Bank, is the 7th largest public sector lender bank has head quarter in Manipal has re-launched its gold loan scheme, SyndSwarna Express. Bank has re-launched the scheme with an aim to widen its personal loan portfolio.
The bank, aims to distribute Rs 1,000 crore under the new scheme, during the present financial year. Under this scheme, one can pledge gold and can take the required loan for a maximum period of two years.
Bank is charging interest of 13.5 per cent on this loan as compared to the earlier 15.5 per cent during last fiscal. It will be lending up to Rs 850 per gram of gold. The bank will be disbursing loan through single windows opened at 300 designated branches across the country for the quick appraisal of gold jewellery and disbursal of loan amount.
Bank said by the end of the present fiscal the scheme will be extended to around 700 branches. Bank sources explained that there is no ceiling on the loan amount and no penalty will be charged for pre-closure of the loan account and the interest will be calculated on the reducing balance.
George Joseph, has taken over as the new chairman and managing director of the bank told Business Standard: “As part of our efforts to adopt a ‘Blue Ocean Strategy’ (creating uncontested market space), we have been introducing new products and gold loan scheme is one such scheme, which is not openly encouraged by public sector banks. For the first time, we are taking the gold loan product to the mass market in cities. Earlier, it was restricted only to rural areas where farmers were pledging gold to raise loans for meeting their agriculture requirements. But, now we have extended it to urban customers at competitive rates.”
Joseph added, “With this scheme, we want to help customers avoid private money lenders who charge between 18 per cent and 24 per cent depending on the tenor of the loan. Our single window will disburse the loan in five minutes”. But, bank will be charging a processing fee of Rs 1.50 for a loan amount of Rs 1,000.
During the financial year 2008-09, Syndicate Bank have plans to disburse Rs 1,000 crore, the growth is close to 17 times over last fiscal’s growth for this product.
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2 comments:
Good news for the people who are seeking to take gold loan.With this scheme,it will help customers avoid private money lenders who charge between 18 per cent and 24 per cent depending on the tenor of the loan.
Diamond Buyers
Gold Loan is the simple and safe loan scheme for the people who need cash to meet the financial crunch of life. The person needs to put gold as collateral and money is given according to the market rate of gold. The Manappuram Gold Loan scheme is very popular all over the country. It is available at lowest interest rates with flexible repayment options.
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