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HDFC Bank on Tuesday announced the launch of ‘Bharosa Gold Loan', a product tailored to provide viable finance to the millions of rural customers in India.
Speaking on the occasion, Mr Biju Pillai, Senior Executive Vice-President and Business Head, said that the product would offer a loan amount up to 140 per cent of the gold value. The minimum loan amount will be Rs 10,000 for rural customers and Rs 25,000 in other areas. The rate of interest will be 11-14.5 per cent depending on the segment.
The bank is looking at targeting women borrowers with a differential rate of interest, which will be 1-1.5 percentage points below the rates charged for other customers. The idea is to cover one lakh women customers within a year.
He said that the bank will introduce the product in 1,300 branches in over 950 locations across the country over the next six months. The objective is to cater to five lakh customers in 10,000 villages.
Rising demand
With the entry of organised sector into the sector, consumers have begun to seek gold loans from banks and NBFCs rather than from traditional moneylenders. As this shift gathers momentum, the gold loan market is set for strong growth, he added.
Mr Dhiraj Relli, Branch Banking Head South-2, said that the bank has a board approved plan to bring 10 million families into the banking fold in five years.
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