UBI floats small loans against gold

United Bank of India (UBI) has unveiled a scheme called 'United Swarna Krishi Yojana' (USKY) under which loans upto Rs 1 lakh would be provided to small and marginal farmers, agriculture labours, against gold ornaments, for productive activities under agriculture.

"This scheme would substitute the village money lenders, who charge higher interest against the gold and as such we are charging much less; 9.5-11.5 percent pa depending on the amount of loan," said PK Gupta, chairman and managing director, UBI.

The repayment could be monthly, quarterly or yearly based on the fluidity with maximum period of three years, he added.

The bank had also taken initiatives to facilitate free "Coin Dispensing Machines" at four centers across the state, which includes SSKM Hospital (Kolkata), General Hospital (Malda), Mayapur ISCON Temple (Nadia) and Dakshineshwar Temple (24 Parganas North).

"It has always been an endeavor of the bank to fulfill its social responsibilities and as such looking inconvenience faced by the general public in absence of facilities of changing currency notes to small denomination coins, we are taking such measures," Gupta said.

The bank has also applied to the regulator for opening 58 new branches across the country in the current fiscal, this include 18 branches in the state, out of which 7 branches would be opened in the newly developed localities in and around Kolkata.

Speaking with reporters, the MD said that UBI is all set for an ATM sharing agreement with the Nepal based Everest Bank.

"Both UBI and the Everest bank use the same software and hence it would be no problem to share the terminals," he added.