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Wednesday, 29th September 2004 (7641 views)

Indian banks are reaping the benefits of the demand for gold as they continue to make profits from loans against gold jewellery.<BR/><BR/>According to Business Standard, the loans are particularly popular since women in the southern states see the precious metal as a top investment and therefore more of them want gold jewellery products.<BR/><BR/>Sanjeev Agarwal, managing director, World Gold Council, south-east Asia explained: "The gold jewellery loan comes at an interest rate of nine to 10 per cent per annum. The average size of a loan is about Rs 50,000 and the recovery rate is also good as it is aimed at working women."<BR/><BR/>The products are also popular since the south has key links with well-known jewellers, making the situation more convenient for consumers in terms of banks and accessibility.<BR/><BR/>Among the banks in the region offering the loans are the Indian Overseas Bank, Canara Bank, South Indian Bank, Karur Vysya Bank and Lakshmi Vilas Bank.<BR/><BR/>The minimum loan to be taken out on gold jewellery is Rs 25,000 whilst the maximum is Rs 2,00,000.<img src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=3492396"/>

 

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