Leading non-banking financial company (NBFC) - IIFL Finance, has launched gold loan products with interest rates starting from 0.54 per cent - one of the lowest interest rate offered by a gold loan NBFC. The scheme is available in more than 2,200 branches of IIFL Finance, according to a recent statement shared by the company.
Gold Loan is a secured financial product where gold jewellery is taken as collateral. During the valuation of gold, the market value is calculated according to the per gram market rate on the day of the loan application. Only the gold parts are used to calculate the value. The other metals, stones and gems are excluded from the calculations.
IIFL Gold Loan offers longer tenure which extends up to 24 months, allowing customers to manage cash flow better. In addition, it offers flexible interest repayment - monthly, bimonthly, quarterly and half-yearly options - to customers based on their requirements.
A customer can walk into IIFL Finance branch and receive the loan within a period of 30 minutes. The company offers five days of grace period for interest repayments, which is a novelty in this segment.
"IIFL Finance has a loyal customer base with over 70 per cent customers choosing to do business with us again. Our customers include farmers and small entrepreneurs, who have used gold loans to meet their capital needs. They appreciate our lower interest rates, longer tenure, grace period and easy digital repayment options,'' said Mr. Saurabh Kumar, Business Head - Gold Loans, IIFL Finance.
Shares of IIFL Finance were last trading 0.56 per cent higher at Rs 286.75 apiece on the BSE. Shares of IIFL Finance opened on the BSE at Rs 287, registering an intra day high of Rs 290.20 and an intra day low of Rs 279.90 in the trading session so far.