Emirates Money offers loan against gold
Dubai, November 24, 2010
Emirates Money, a subsidiary of Emirates NBD, a leading bank in the region, has launched a new loan initiative that enables customers to borrow up to 80 per cent of the value of the gold they deposit.
“Loan Against Gold” is the first product of its kind in the GCC and offers competitive interest rates that are among the lowest in the market for retail loans, while at the same time ensuring the safe and secure storage of the gold.
The “Loan Against Gold” initiative is being launched in coordination with Dubai Multi Commodities Centre Authority (DMCCA). All transactions will be monitored and executed using DMCC’s electronic precious metals ‘Dubai Gold Receipt’ (DGR) system, part of the wider ‘Global Multi-Commodities Receipt’ (GMR) warranting system, which facilitates commodity trade financing.
The gold, which can be in the form of jewellery or bullion, will be stored in the DMCC’s state-of-the-art Gold Vault operated by 'Brink’s Global Services DMCC', a leading global security services and logistics solutions provider with over 150 years of international experience.
Customers wishing to avail of this loan initiative must deposit gold worth
Dh30,000 or more with Emirates Money, with the tenure of the deposit ranging from a minimum of six months to a maximum of 36 months.
“Emirates NBD Group is focused on developing innovative lending concepts and responsible practices that will enable us to offer our customers the most attractive terms, while at the same time securing our investments,” said Jamal Bin Ghalaita, group deputy CEO, Emirates NBD and chairman, Emirates Money.
“The GMR system provides a safe, secure and cost effective mechanism for borrowers to access credit and the Emirates Money ‘Loan against Gold’ initiative makes these advantages available to a new audience,” added Malcolm Wall Morris, chief executive officer, DMCC.
Gold deposited under the “Loan Against Gold” initiative will be covered under insurance, and all transactions will be recorded on camera.
Emirates Money plans to use non-destructive testing methods for evaluation of the gold deposited by the customer. The initiative also encompasses special schemes for UAE Nationals and UAE-based jewelers.-TradeArabia News Service