Money & Banking

IOB to extend agri-jewel loan scheme to urban areas

MangaloreFeb. 25 Mangalore | Updated on February 25, 2011

Enthused by the response to agricultural jewel loan schemes in rural areas, Indian Overseas Bank is now planning to replicate the model in urban areas also. The bank is planning to open a separate desk for gold loans in 25 branches in the country.

Speaking to presspersons on the sidelines of the platinum-jubilee celebrations of the bank in Mangalore on Friday, Mr M. Narendra, Chairman and Managing Director, said the bank has been granting jewel loans to agriculturists at concessional rates of interest to avoid them from going to moneylenders. The total agri-jewel loan outstanding of the bank is Rs 7,038 crore in 14.67 lakh accounts.

“Enthused by the agri-jewel loan in rural areas, we thought of capitalising [on] it in urban areas also. We are opening [a] separate desk for gold loans in 25 branches. With this, we will be able to provide very fast gold loan to urban customers also,” he said.

On the rates of interest for these loans, he said it will be much cheaper than those of the private players.

Ms Nupur Mitra, Executive Director of the bank, said the bank was allotted 1,273 villages under the financial-inclusion plan. Of them, 771 branches have been covered.

Later, she told Business Line that the remaining villages will be covered by June this year, much before the targeted date of March 31, 2012.

Under the programme, the bank has 17.14 lakh no-frill savings accounts with a balance of Rs 74.56 lakh.

Mr A.K. Bansal, Executive Director, was present on the occasion.

Published on February 25, 2011

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