June 19, Colombo: Individuals engaged in agriculture and related activities have been given further recognition by the Commercial Bank of Ceylon with the announcement of a concessionary rate of interest on pawning, exclusive to them via the recently-launched ‘Agri Gold Loans’ scheme.
The Bank has announced it is now offering the lowest gold pawning rate in the country – just 7.5% per annum – applicable to those in the sector who pawn jewellery to raise cash to invest in their agriculture-linked livelihoods.
Designed to support those engaged in agriculture, fisheries, and livestock farming, these Agri Gold Loans provide an advance of Rs 70,000 per sovereign of 24-karat gold and enable borrowers to redeem their pawned jewellery with no prior notice by repaying the loan and interest, without having to wait until the end of the tenure.
Agri Gold Loan customers are offered the option of settling the loan in full with interest at the end of the tenure without making monthly payments, or paying monthly instalments to settle from the capital and interest over 12 months. Those who choose the latter option only have to pay interest on the remaining loan balance and the capital outstanding to settle the advance, the Bank said.
Furthermore, at the end of the first tenure, customers may renew their Agri Gold Loan facility for another 12 months, simply by settling only the interest amount for the initial tenure.
The Agri Gold Loan facility ensures privacy, exclusivity, maximum security of jewellery, and instant funds in the time of need for those who affirm their engagement in agricultural and related activities and declare to the Bank that the proceeds of the loan will be utilized for those pursuits. The Bank said it will not levy any service charge, stamp duty, or other hidden charges for this service.