Mahindra Finance launches loan against gold scheme

By News Desk | March 22, 2010

Mahindra finance, the financial services division of the Mahindra Group has introduced a new product ‘Loan against gold’ in Kerala. Vice-Chairman Uday Phadke said that the design of the product is such that the clients can avail of loans against gold jewellery. This will save them from having to sell off their gold jewellery to meet their financial needs.

This amenity is suitable for emergency needs of clients and works by utilizing the power of gold by making it a productive asset, he said. It is the first loan branch started by the firm in Thodupuzha. It plans to introduce equivalent branches in 8-10 places within a year in the state, said Mr. Phadke.

Mr. Phadke also expressed confidence that it will gain the trust of the clients and play a major role in regulating the industry.

Ramesh Iyer, Managing Director, Mahindra & Mahindra Financial Services limited said that India was the inital market for gold and so growth prospects of the gold business is significant in India. He also said that besides opening new branches in Kerala, the company would also think about broadening its horizon to States such as Maharashtra and Tamil Nadu.

He said, many types of loans would be provided by the firm, including small ticket loans, need-based loans and loans against pledge of gold jewellery. These loans would carry an interest rate from 11-14%. This will be cheaper than personal loans.

The company has also expressed interest in obtaining a banking license.

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