MUMBAI: Indian Bank has slashed its interest rate on gold loans offered to farmers to 7 per cent.
The state-owned lender has reduced interest rate on its short-term gold loan scheme -- Bumper Agri Jewel.
Earlier, interest rate on the product was 7.5 per cent. 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 per cent 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 per cent of the ornament value as loan. The loan is repayable in six months.