‘Fast gold loan' from Fedbank

With a continuous rise in interest rates as a result of frequent hikes in key rates by the Reserve Bank of India, personal loans have become costlier. . As banks and financial institutions consider gold loans in the domain of secured lending, providing high interest margins, they feel this a thrust area for growth.

Non-banking finance companies such as Muthoot Finance and Manappuram Finance have already made a significant presence in gold loan business. To take advantage of this high margin business, Fedbank Financial Services has announced the introduction of its loan product ‘Fast gold loan'.

Addressing presspersons here on Tuesday, P. K. Mohapatra, Deputy General Manager and Acting Head, Fedbank Financial Services, said the company had already emerged as one of the fastest growing gold loan companies by offering gold loans through 100 branches in Tamil Nadu, Karnataka and Andhra Pradesh. The organised gold loan market in India was growing at 38 per cent over the last eight years and Fedfina had already disbursed 45,000 loans in just seven months, accounting for a total disbursal of Rs. 350 crore, Mr. Mohapatra said. As against unsecured personal loans, gold loan was hassle-free on the part of borrowers as it was disbursed in minutes and without any proof of income, he said.

According to Dilip Maloo, Vice-President and Head of Finance, the company was charging from 12 per cent to 25 per cent based on the loan amount and the risk profile. The minimum disbursement was Rs. 3,000 per loan account and the maximum Rs. 10 lakh, he said.

The company was planning to open 100 new branches in Andhra Pradesh, Gujarat, Maharashtra and Goa by next month and the plan was to reach 300 branches by the end of the financial year, he said. Other products such as loan against property and car loans would follow in due course, he said.

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Printable version | Jan 23, 2022 12:34:31 PM |

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