The State Bank of India launched a new variant of personal gold loan ‘Gold loan Overdraft’. Addressing a Press meet here on the occasion, Chief General Manager, Bhubaneswar Circle B Venugopala Reddy said earlier gold loan was sanctioned in form of demand loan, but now it can be sanctioned in the form of an overdraft limit.
“It is one of the variants of SBI Personal Gold loan. Earlier this was implemented on pilot basis in three circles and now it has been implemented in all circles,” he informed.
Minimum loan limit is `1lakh and maximum limit is `20 lakh. It is applicable to all branches irrespective of centres. While margin is 30 per cent on value of pledged gold ornaments, processing fee is 1.1 per cent of loan amount. The rate of interest is 290 basis point above Base Rate (9.30 per cent), that is currently effective 12.20 per cent per annum. It comes to 1.02 per cent per month and 0.03 per cent per day, Reddy said, adding that the maximum repayment period is 36 months subject to review after every 12 months.
Dwelling upon benefits for public under the scheme, Reddy said the borrower here will only pay the interest amount on the amount withdrawn in the overall limit rather than the EMI like any other loan. Besides, the principal amount withdrawn will be repayable as a bullet repayment at the end of the loan term. The borrower can also avail a fresh overdraft after the first one is liquidated, he said.
Among others, Arup Das Gupta, DGM, Bhubaneswar and KC Bhanja, DGM, Personal Banking Business Unit, Bhubaneswar, were present. UPNayak, AGM (PR) gave the welcome address and VS Rao AGM, Bhubaneswar Main Branch proposed vote of thanks.