Gold Loan Biz Shifting From Money Lenders To Banks

HDFC Bank has announced the addition of 51 Gold Loan desks to its branch network in Uttar Pradesh

By Virendra Singh Rawat

Lucknow, June 17 (The CONNECT) – India’s top private sector lender HDFC Bank has announced the addition of 51 Gold Loan desks to its branch network in Uttar Pradesh.

With this, 170 branches of the HDFC Bank will offer gold loan to customers in the state.

UP deputy chief minister Brajesh Pathak inaugurated the HDFC Gold Loan desks in Lucknow. The gold loans are available with flexible tenure and repayment options – tenures starting from 3 months and going up to 36 months, according to the Bank officials.

In fact, HDFC Bank is now working towards making all its branches in UP capable of processing gold loans in the current financial year 2022-23.

“We are excited to introduce 51 Gold Loan desks in the state. Further, we are working towards making gold loans available at all our branches in Uttar Pradesh. This will help general public take loan against idle gold to meet their financial needs and exigency,” HDFC Bank, Branch Banking Head, UP, Akhilesh Kumar Roy said.

Of late, the gold loan segment has witnessed a steady uptick in India for both personal and business purpose consumption and banks and private companies have been offering attractive deals.

Primarily, gold loan applicants span a varied segment ranging from both salaried as well as self-employed categories. The Bank officials said people exploring quick loans for a short duration with minimal documentation will benefit from this facility.

“We are witnessing higher demand for gold loan and this demand is coming from customers in semi-urban and rural areas, who are shifting away from unorganised moneylenders and pawnbrokers, to the organised sector such as banks. Moneylenders and pawnbrokers are not only unregulated but also charge higher interest rate,” he added.