Gold loan norms eased

The State Bank of India is trying to make the Metal (Gold) Loan Scheme more attractive.

The bank has relaxed terms and conditions for this purpose. The bank now allows repayment of the gold loan within the stipulated period of six months. There would be a minimum loan period of 15 days. So far, the bank offered a fixed term with a minimum loan period of one month and a maximum of six months. The bank would also offer metal loans against Gold Deposit Certificates which may be in the name of the bearer or a third party. The lock-in period must have expired. There was no facility earlier as the Gold Deposit Certificates were classified as specified security. The rates of interest against cash credit is 7.5-8.5 per cent. It was fixed at 9.5 per cent earlier. The scheme was introduced in 1998 and aimed at domestic jewellers. -- BL Research Bureau