Federal Bank offers overdraft facility against gold loans

Kochi-based Private Sector Lender Federal Bank introduced a new facility that offers an overdraft facility against pledged gold. The Bank has seen high growth in its gold loan book in recent months and wants to bank on it.

‘Easy Gold’, which the bank claims is the first such product in the country, offers a debit card with an overdraft facility using which customers can withdraw money or use loan amount through any ATM or PoS (point of sale) terminals.

It also offers cheque book facility to its gold loan customers under the new offering, which allows a customer to get up to 75% of the market value of the yellow metal.

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