Private sector lender IndusInd Bank on Friday announced that it has nearly doubled the number of branches selling gold loans to 500.
The bank said the addition of 245 branches doing gold loans is driven by the need to make secured credit more accessible, convenient, and reliable for customers.
The announcement comes at a time when lenders have been doubling down efforts on selling gold loans considered very secure amid the surge in prices.
Some volatility in the prices of the precious commodity lately has raised questions about the portfolio, which has doubled in the last two years, but the RBI said it does not see any cause for concern.
The bank statement said there is a high demand for gold loans from households, small traders, and agri-linked customers, who rely on quick liquidity against their gold holdings.
It said the bank will disburse up to Rs 1 crore instantly with minimal documentation, competitive interest rates, and flexible tenure options.
Each of these branches has a dedicated good loan desks and the gold collateral will be stored by the bank.
"This move will strengthen the Bank's retail lending portfolio," the head of consumer banking at IndusInd Bank, Soumitra Sen, said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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