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Bank Customers Will Soon Use Their Gold As Collateral For Loans, Says Minister

Bank Customers Will Soon Use Their Gold As Collateral For Loans, Says Minister—-The Genius Media Nigeria reports that Nigerian Banks will soon allow customers especially owners of Small and Medium Enterprises, to use their gold jewellery as collateral for loan facilities.

This was disclosed by the Minister of Mines and Steel Development, Olamilekan Adegbite, on Sunday.

Adegbite explained that his ministry has decided to revive the industry and at the same time create opportunities for Nigerians, especially SMEs, to raise funds for their businesses.

He said, “We are discussing with some financial institutions to create products to accept the gold jewellery from Nigerians and give them credit that is within the worth of the commodity.”

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Bank Customers Will Soon Use Their Gold As Collateral For Loans, Says Minister

How it works

The Minister explained that all interested Nigerians need to do is to approach the bank, drop the gold in its vault and collect a certificate to that effect.

According to him, the certificate can be used to obtain a loan from either the same bank where the jewellery was deposited or another financial institution. When the bank has been refunded, the individual gets his certificate/gold back.

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