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.