Federal Bank launches new gold loan product

Federal Bank has launched a new gold loan product ‘Vidya Gold’ in order to meet educational expenses in the forth coming school re-opening season. The product is ideal for meeting the school admission and related expenses of students from LKG level to Higher Secondary. The bank offers this product at 200 basis points lower than normal gold loan products, an interest rate as low as Rs 99 paise per Rs 100 per month.  To encourage the students to maintain bank accounts and develop saving habit, the product is offered as a combo offer beneficiaries are requested to open an SB or RD account. Under the scheme, 75% of the market value of gold pledged is given as loan subject to a maximum of Rs one lakh.