Public sector Canara Bank said on Monday it has launched a business vertical dedicated for gold loans to meet emerging financial needs of customers in view of the current challenges and uncertainties.
It said the COVID-19 pandemic has changed socio-economic order of the country and managing everyday expenses, business continuity, health and family care are a challenge for many.
With this objective, the bank has launched a special gold loan campaign till June 30 with an interest rate of 7.85 per cent per annum. The loans are payable within a period of one to three years with flexible repayment options.
"Gold is widely held by Indians as a family asset in the form of jewellery and coins. However, it is seldom leveraged for monetary requirements. In times of need, this asset can be utilised to avail credit to support emergency cash requirements," said D Vijay Kumar, General Manager for Gold Loans Division.
The credit can be utilised for agriculture and allied activities, business needs, health emergencies and personal needs. The loan facility can be availed from all designated branches pan India, the bank said in a statement.
After the amalgamation of Syndicate Bank on April 1, Canara Bank has attained the position of fourth-largest public sector bank in the country with a total business of Rs 15.53 lakh crore. It has 10,403 domestic branches, 13,448 ATMs and about 6,000 business correspondents.
( With inputs from ANI )