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SBT Gold Loan A Perfect Gold Investment for Bright Future

Indians are said to be crazy about gold, and the yellow metals holds a special significance in the life of every Indian. Although the gold prices have been escalating, people still flock to the jewellery shops to buy gold. The affinity of people towards gold has a number of reasons, the first and foremost reason being that gold is considered equivalent to liquid cash. Secondly gold is a reflection of one’s wealth and is therefore the status symbol, it is considered as a very good investment option and also has great ornamental and religious value. At SBT, they have a number of lending products to meet the varied need of funds.

SBT gives loans against gold ornaments and the amount of loan may span up to a sum of ten lakhs. Loans that are granted for six to twelve months can be further renewed and the documentation process is not complex at all. If the loan is that of one lakh, the interest that SBT charges is 1% above the base rate, which is presently 11.25%. If the amount is above ten lakhs but less than twenty five lakhs, the rate of interest is 1.25% above the base rate, currently that is 11.50%. There is also the overdraft facility in SBT, against the pledge of gold ornaments, operated as a running account with facility of cheque book. People opine that gold loan in SBT is a very bankable option to meet any crying demand, there is no need of any kind of documents, or one does not have to wait for the bank to revert, one just has to visit SBT bank with gold and the gold loan will be sanctioned in few minutes. Recently SBT has reduced the gold loan interest to 4% and in fact State Bank of Travancore has specially opened a branch to focus only on gold loans. The USP of this branch is, it facilitates the sanctioning of gold loan in ten minutes time. It is SBI’s effort to have an edge over non-banking finance companies which have grown like mushrooms all over the state. When a customer approaches a bank for a gold loan, hassle free transaction is the most important thing, so SBT has kept it in mind and the special branch ensures that the customers get gold loans in no time. To increase their share in gold portfolio, SBT like all other banks has started selling gold coins.

SBT also has a special provision for farmers who have a regular income from agricultural activities, or those having an account with the bank and have maintained impressive deposits and it is called SBT Kisan Gold Card Scheme. Gold, as we see does not only add charm to a female’s beauty, but is also seen as an appreciating investment vehicle. Gold biscuits, coins and bars are available in SBT, and people like to buy it, as they yield higher returns. People mostly opt for gold loans because they are available at a cheaper rate if a collateral security is attached. Gold, therefore as we see, is an investment asset which has given reasonable returns in the last few decades. The savings from gold come handy, especially during the weddings of your near and dear ones. SBT is the most preferred bank when it comes to gold loan is because; SBI has come up with the unique Gold Accumulation Facility under its Systematic Investment Plan.

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