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Wednesday, November 08, 2000

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IOB launches gold loan scheme for jewellery exporters

Our Bureau

COIMBATORE, Nov. 7

INDIAN Overseas Bank (IOB) has launched a gold loan scheme for jewellery exporters here.

Launching the scheme, Mr R. Krishnan, General Manager, IOB, Chennai, said his bank was the first in the country to enter gold sale after the RBI gave its nod a few years ago.

The period of the loan, under the `Metal (Gold) Loan' scheme to jewellery exporters, was a maximum of 120 days from the date of delivery of the yellow metal. The quantity was need based, depending on the market standing track record of the exporters.

Explaining the advantages of the scheme, Mr Alagappan, Deputy General Manager, IOB, said the bank provided a single window facility from loaning of the raw material to realisation of the export proceeds. The exporters could take delivery of duty-free gol d immediately from the customs-bonded warehouse on unfixed basis and pay later.

The gold price was fixed at the time of export or before as per customers' choice. The interest rate was linked to international rates and was much lower than the normal rupee loans.

Mr. J. Balasubramanian, Chief Regional Manager, IOB, Coimbatore, said the contribution of Coimbatore region to bullion business was next only to Mumbai's. The bank had collected nearly 160 kg of gold from depositors and had come out with gold loan scheme for local sales which was picking up.

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