TN State Apex Co-Operative Bank disburses ₹187 crore under gold loan scheme during lockdown

The Tamil Nadu State Apex Co-Operative Bank Limited has so far disbursed ₹187 crore to 20,000 people in Chennai during the lockdown period, under its loan against gold scheme.

“We had launched the scheme with a lower interest rate during the lockdown period and a lot of people have availed of it to manage their liquidity problems,” a senior bank official said.

Under the scheme, the gold was valued at 10% more than in the usual gold schemes, or in other words the gold was valued at ₹3,300 per gram, compared to ₹3,000 per gram in regular schemes. The loan attracts an interest of 6% per annum, when compared to 9.5% in regular schemes. The minimum amount that can be borrowed is ₹25,000 and the maximum is ₹1lakh with a repayment period of three months and an additional grace period of three months.

The scheme attracts a processing fee of 1% plus GST. For a ₹50,000 loan it will be ₹590 (1% on 50,000 plus 18% GST). The Prime Minister accidental insurance scheme with cover of ₹2 lakh would be offered free for borrowers under the scheme.

The bank claims that it is the cheapest loan scheme available in the market among banks and NBFCs.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *