The South Canara District Central Cooperative Bank (SCDCCB) will be launching a new loan scheme enabling customers to buy gold. The loan scheme is to come into effect from tomorrow, November 15, 2011.

According to President of the bank, Mr M N Rajendra Kumar, the scheme is being introduced so as to enmark the celebration of 58th cooperative week in Karnataka.

He said that the bank would be offering 80% of the total loan amount and 20% has to be borne by the customer.

Invoices from registered jewellers need to be submitted by the customer to the bank along with 20% margin money so as to be eligible for the loan.

The gold would be kept as mortgage with the bank till the loan repayment is complete.