Indian Bank trims interest rate on gold loans for farmers

The state-owned lender has reduced interest rate on its short-term gold loan scheme -- Bumper Agri Jewel. Under this Bumper Agri Jewel loan scheme, the bank is giving 85 per cent of the ornament value as loan.

Indian Bank has slashed its interest rate on gold loans offered to farmers to 7 percent. The state-owned lender has reduced interest rate on its short-term gold loan scheme -- Bumper Agri Jewel. Earlier, the interest rate on the product was 7.5 percent. The reduction has been done considering the present pandemic situation and also to provide easy credit to the needy farmers at a cheaper cost, a release said.

“With effect from July 22, 2020, Agricultural Jewel Loans are sanctioned at 7 percent fixed which means it is only Rs 583 per lakh per month,” the bank said. Under this Bumper Agri Jewel loan scheme, the bank is giving 85 percent of the ornament value as a loan. The loan is repayable in six months.

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