Loans
Federal Bank offers overdraft facility against gold loans

Easy Gold' from Federal Bank offers a debit card with an overdraft facility using which customers can withdraw money or use loan amount through any ATM or PoS terminals

 
Mumbai: Federal Bank, which has seen high growth in its gold loan book in recent months, has introduced a new facility that offers an overdraft facility against pledged gold, reports PTI.
 
'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.
 
Under the product, interest will be applied only on the amount utilised and the loan will be sanctioned for a period of up to three years with amount up to Rs75 lakh, the private lender said today.
 
Yesterday Federal Bank Managing Director and Chief Executive Shyam Srinivasan had said he expected to maintain a 15% high growth in gold loan book on the back of a 25% spike in advances against gold in the June quarter.
 
Since April, banks have been witnessing more footfalls at their gold loan counters after the RBI clamped down on pure-play players in the segment like Muthoot Finance, Manappuram Finance and Muthoot Fincorp, among others, by limiting the loan to value (LTV) at 60%.
 
Earlier, these NBFCs were offering over 80% LTV to customers.
 

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After doctors, HDFC Bank launches credit card for teachers

The new credit card from HDFC Bank offers special features such as multiple reward points, weekend bonanza points and petrol surcharge waiver

Mumbai: HDFC Bank, the largest player in credit card space in the country, has launched a card exclusively for teachers, reports PTI.

 

The new credit card -- launched on the Teacher's Day -- offers special features such as multiple reward points, weekend bonanza points, petrol surcharge waiver and 500 teacher's day special gift reward points.

 

Explaining the rationale, the bank in a statement said education is one of the largest service sectors in the country with a combined market size of more than 450 million students and growth rates of 10-15% expected over the next decade.

 

The total market of education institutions is expected to increase to Rs2.5 trillion by the end of the year, and the education sector will have attractive margins, it said.

 

HDFC Bank senior executive vice-president & business head for credit cards & merchant acquiring services Parag Rao said, "Like the doctor's credit card that we launched recently, the teachers' credit card is a token of appreciation towards lakhs of teachers who play a pivotal role in shaping the lives of millions of our children.

 

"Also, being the industry leader, we believe in providing diversified products to an extensive customer base."

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Steady Performance

Narmada Gelatine and Wim Plast have been added to our portfolio, while Deccan Cements is...

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