Allahabad Bank plans taking its gold loan scheme pan-India

Indian financial entity, the Allahabad Bank is considering to take its gold loan scheme on a national level, advancing it from the current scope of four states in South India including Andhra Pradesh, Kerala, Karnataka and Tamil Nadu, besides Kolkata, reports say. The bank is based on Kolkata.

The loan scheme pertains to sanctioning loan against gold jewellery as collateral, and was initially launched in Kolkata through the 25 branches, reports say.

The bank notes the process of sanctioning the loan would be fast and would allow a maximum loan amount of Rs 5 lakh, reports say. It would attract 12.5 percent as the annual rate of interest, reports say. The financial entity is looking at a phased out pan India expansion of the scheme beginning with the western and northern regions. It notes the increased scope will enable it to expand its portfolio, reports add.