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Funding Metal:

Sri Lanka Com Bank cuts interest on gold loans

Sept 26, 2011 (LBO) - Sri Lanka's Commercial Bank has reduced its interest rate on gold loans by three percentage points for those using the precious metal to raise funds at short notice for business or personal purposes.

Interest on gold loans has been cut from 14 percent a year to 11 percent, enabling borrowers to raise money at less than one percent per month, a statement said.

Simultaneously, the bank has increased the value of the advances for 22kt and 24kt gold sovereigns for loans above 10,000 rupees.

“Gold loans can be obtained faster and at a lower cost and are therefore more attractive than options such as overdraft facilities and regular loans,” Assistant General Manager (Personal Banking) of Commercial Bank Vimal Fernando said.

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