Loan against Gold Units Launched by Reliance Commercial Finance

Recently, Reliance Commercial Finance (RCF), part of the Anil Dhirubhai Ambani Group, launched a unique initiative plan – loan against gold.

An online news portal - economictimes.indiatimes.com, writes about the offer,

“Customers can avail of loans up to 90 percent of the value of gold units held, while the minimum amount offered under this initiative would be Rs.100,000 and the maximum would be Rs.1 crore.

The tenure of the loans will vary from 6 months to 12 months and can be paid in easy repayment options available under the initiative.”

The news portal adds a statement of K.V. Srinivasan, chief executive of Reliance Commercial Finance also,

“These loans, being offered by RCF, are part of an exclusive tie-up with Reliance Mutual Fund and would initially be available to investors of Reliance Gold Savings Fund only. We strongly believe that gold funds have opened an entirely new avenue for offering loans to customers. We expect this segment to ramp up aggressively as investors start embracing this form of gold for future investments. The tie-up provides a unique opportunity for Reliance Gold Savings fund investors to unlock the value of their savings held in form of Gold mutual fund units. Investors will continue to enjoy benefit of gold price appreciation during the tenure of loan.”

The news portal writes about the character of loan against gold units,

“Reliance gold savings fund enables investments in the precious metal in paper form, without having to open a dematerialised account. In other similar funds, a demat account is mandatory.”

This facility is offered across 17 locations in India. These are launched with an exclusive tie-up with Reliance Mutual Fund. It would initially be available to investors Reliance Gold savings fund only. So, it enables investments in the precious metal in paper form. It is launched just after Reliance SIP in gold savings fund.