The Tamil Nadu State Apex Co-Operative Bank Limited has rolled out a loan against gold scheme with lower interest rate, to help lower income people to tide over the liquidity crisis caused by the current lockdown.
As per the scheme, the gold would be valued 10% more than the normal gold schemes. Under the scheme, the gold would be valued at ₹3,300 per gram, when compared to ₹3,000 per gram in the normal schemes.
The loan will attract an interest of 6% per annum, when compared to 9.5% in normal schemes. The minimum amount that can be borrowed is ₹25,000 and maximum is ₹1 lakh with repayment period of three months with a additional grace period of three months.
The scheme would attract a processing fee of 1% plus GST. For a ₹50,000 loan it will be ₹590 (1% on 50,000 plus 18% GST).
The Prime Minister accidental insurance scheme with cover of ₹2 lakh would be offered free for the borrowers under the scheme.
“The scheme is rolled out keeping in mind the liquidity problems faced by people and they are approaching money lenders who are charging exorbitant interest rates,” according to a note from the bank.
It also claimed that this is the cheapest loan scheme available in the market among banks and NBFCs.
