Gold loans rising; so is competition
Banking Frontiers|April 2023
The cooperative banks are targeting most of the gold loan processing to be done digitally
Gold loans rising; so is competition

Shantanoo Joshi, Vice Chairman, the Akola Urban Co-operative Bank; Alka Shrivastava, Chairperson, Lakshmibai Mahila Nagrik Sahakari Bank and Vasant Kulkarni Deputy CEO, Sharad Bank, provide insightful updates in the gold loan business of their respective banks.

Mehul Dani: What are the tenures of gold loans, what are product features in the gold loans of your bank in the current FY?

Shantanoo Joshi: We have 3 products under gold loan. The shortterm loan is for a period of 1 year, wherein the repayment is permitted to be made as bullet payment i.e. the principle and interest for the whole year is payable on the due date.

The other product is for a tenure of 3 years, wherein the repayment is to be made in 36 EMIs. In this product, the repayment capacity of the borrower is to be considered.

Off late, we have introduced another product, wherein the borrower is sanctioned a limit to a running account. The borrower can operate his account within the limit sanctioned as per the valuation of the gold pledged by the borrower. This limit is reviewed every year and is renewed once in 3 years.

Alka Shrivastava: Tenure for gold loans of Lakshmibai Mahila Nagrik Sahakari Bank up to ₹1 lakh is 1 year and loans above ₹1 lakh are term loans. In this, the loan term and instalment will depend on the borrower’s income and ability to repay the loan. Loan is given up to 70% of the purity and valuation of gold. Gold loans are given by our bank at 9.5% interest.

Vasant Kulkarni: The maximum tenure for gold loan of Sharad Bank is 36 months. For loans up to ₹2 lakhs, loan period is 12 months with bullet payment and for loans above ₹2 lakhs period is 36 months but with EMIS.

What is the value and volume of gold loans of your bank in the last 3 FYs?

Denne historien er fra April 2023-utgaven av Banking Frontiers.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra April 2023-utgaven av Banking Frontiers.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BANKING FRONTIERSSe alt
It's a bank and a brokerage - FinecoBank
Banking Frontiers

It's a bank and a brokerage - FinecoBank

FinecoBank of Italy is a highly tech-enabled bank that is a combination of a bank and a brokerage:

time-read
3 mins  |
November 2024
A model for cloud adoption - Zurich Cantonal Bank
Banking Frontiers

A model for cloud adoption - Zurich Cantonal Bank

The bank is had opted for cloud to offer better service to its customers:

time-read
3 mins  |
November 2024
RBI Governor urges NBFCs to adhere to fair practices code
Banking Frontiers

RBI Governor urges NBFCs to adhere to fair practices code

The Reserve Bank of India (RBI) Governor has urged Non-Banking Financial Companies (NBFCs) to strictly adhere to the Fair Practices Code, emphasizing sustainable growth and robust risk management in the sector.

time-read
1 min  |
November 2024
Automated, Adaptive, Al-enabled Architecture is a must
Banking Frontiers

Automated, Adaptive, Al-enabled Architecture is a must

Security heads from 2 BFSI companies reveal the key cyberfrauds and strategies to combat them:

time-read
4 mins  |
November 2024
Fraudsters too gain ground as real-time payment systems grow
Banking Frontiers

Fraudsters too gain ground as real-time payment systems grow

There is a need for the technologies behind the real-time payment systems to gain a march over the methods of fraudsters:

time-read
5 mins  |
November 2024
Ethics & Challenges of AI in Cyber security: Navigating the Moral Maze
Banking Frontiers

Ethics & Challenges of AI in Cyber security: Navigating the Moral Maze

Even as AI is finding its place in the cyber security domain, an entirely new frontier of ethical challenges awaits.

time-read
3 mins  |
November 2024
Bangladesh Finance: 25% faster customer service; 15% higher customer retention
Banking Frontiers

Bangladesh Finance: 25% faster customer service; 15% higher customer retention

Bangladesh Finance, established in 1999, is a leading financial institution in Bangladesh.

time-read
5 mins  |
November 2024
Fino sparkles with technology & brand upshift
Banking Frontiers

Fino sparkles with technology & brand upshift

Fino Payments Bank started operations in June 2017, providing banking services to mass market customers, who are largely rural-based.

time-read
4 mins  |
November 2024
Savington Upshifts: 48% Faster, Churn down 31%
Banking Frontiers

Savington Upshifts: 48% Faster, Churn down 31%

Savington International Insurance Brokers LLC, founded in 2006 by Dev Maitra, is a prominent insurance provider in the UAE.

time-read
4 mins  |
November 2024
Zoroastrian Bank: Multiple awards for being the Best
Banking Frontiers

Zoroastrian Bank: Multiple awards for being the Best

Established in 1927 by Sir Hormusjee Cowasjee Dinshaw Adenwalla, Zoroastrian Bank is a prominent urban cooperative bank headquartered in Mumbai, India.

time-read
7 mins  |
November 2024