New Delhi, May 9 (IANS) Financial services firm Reliance Commercial Finance (RCF), part of the Anil Dhirubhai Ambani Group, Monday launched a unique initiative offering loan against gold held in paper form.

 
 Customers can avail of loans up to 90 percent of the value of gold units held, while the minimum amount offered under this initiative would be Rs.100,000 and the maximum would be Rs.1 crore.
 
 The tenure of the loans will vary from 6 months to 12 months and can be paid in easy repayment options available under the initiative.
 
 "These loans, being offered by RCF, are part of an exclusive tie-up with Reliance Mutual Fund and would initially be available to investors of Reliance Gold Savings Fund only,"  said  K.V. Srinivasan, chief executive of Reliance Commercial Finance.
 
 Reliance gold savings fund enables investments in the precious metal in paper form, without having to open a dematerialised account. In other similar funds, a demat account is mandatory.
 
 "We strongly believe that gold funds have opened an entirely new avenue for offering loans to customers. We expect this segment to ramp up aggressively as investors start embracing this form of gold for future investments" Srinivasan said.
 
 RCF, a subsidiary of Reliance Capital, the flagship financial company of the Anil Dhirubhai Ambani Group would be offering this facility across 17 locations like Delhi, Kolkata, Mumbai, Ahmedabad, Chennai, Bangalore and would roll out across all other regions subsequently .
 
 “The tieup provides a unique opportunity for Reliance Gold Savings fund investors to unlock the value of their savings held in form of Gold mutual fund units. Investors will continue to enjoy benefit of gold price appreciation during the tenure of loan", added Srinivasan.