HDFC Bank has launched its gold loan scheme ‘Bharosa Gold Loan’, a product tailor-made for the rural customer. This is an attempt of the bank to reach out to the rural market as the scheme will be offered through 1300 branches of the bank in over 950 locations across the country.
The product will offer a loan amount of up to 140% of the gold valuation and in a bid to ensure transparency, customer will be given a valuation certificate with the itemized description of gold, its weight and the amount lent.
For the rural areas the minimum loan amount will be Rs 10,000 while for the other regions it will be Rs 25,000. The interest rate for the gold loan product will vary from 11-12% to 14.5 - 15%. The bank would offer differential interest rate to women planning to avail gold loan.
