Mumbai, May 7 UNI | 3 months ago

To meet educational expenses in the forth coming school re-opening season, Federal Bank has launched a new gold loan product, Vidya Gold.

The product is ideal for meeting the school admission and related expenses of students from LKG level to Higher Secondary.

Considering the ease of process and delivery speed, it is suitable for higher studies also, a bank release said.

Being a loan that serves a social cause, the bank offers this product at 200 basis points lower than normal gold loan products. An interest rate as low as Rs.99ps/Rs.100 per month. The loan is given in the name of major students or parents. 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 percent of the market value of gold pledged is given as loan subject to a maximum of Rs. One lakh.

(Posted on 08-05-2014)