The institutional mechanism offers a viable option to avail of gold loans at attractive rates, ensures safety of asset, says HDFC Bank
By VIRENDRA SINGH RAWAT
LUCKNOW, Nov 1 (The CONNECT) – In a century of sorts, top private sector lender HDFC Bank has announced the dedication of 101 new branches equipped with ‘gold desks’ taking such facility to 350 outlets in Uttar Pradesh region.
The bank is now working on a roadmap to offer gold loans in all its retail branches in the State by the end of the current fiscal.
Currently, the Bank has a network of 650 branches in the state and it plans to them to 800 in the 2022-23 financial year.
“The institutional mechanism offers a viable option to customers to avail of gold loans at attractive rates while ensuring that their asset is also secure,” HDFC Bank, Branch Banking Head, UP, Akhilesh Kumar Roy told the media here today.
In the hinterland, the private money lenders invariably charge exorbitant rates of about 2 percent per month from people in urgent need of funds for different purposes including marriages, sowing season, education, business or trade.
In this context, the gold loan facility being offered by commercial banks and other lenders seek to tap this large unorganised segment.
As per HDFC Bank website, the bank’s gold loan averages out to 11.1% a year.
Meanwhile, UP deputy chief minister Keshav Prasad Maurya, who unveiled the new HDFC Bank gold loan desks, suggested the banks create awareness among the rural masses about the various institutional products to save them from the clutches of money lenders.
“This facility will allow people to make the most of their idle gold with minimal documentation and transparent charges. Gold loans will be available for tenures starting from 3 months up to 24 months,” an HDFC Bank communiqué said.
Gold loan applicants include a varied segments ranging from the salaried to the self-employed.
The demand for gold loans has been growing across India in the past 2 years. The Bank is planning to meet this demand by opening more such desks across the country.