Bank of Baroda gold loan customers in Andhra Pradesh face loss of pledged ornaments
In Jangareddygudem, Andhra Pradesh, a large number of customers who availed gold loans from the Bank of Baroda branch are reporting that their pledged gold ornaments are missing. Customers gathered outside the branch with loan documents, passbooks, and pledge receipts, seeking clarification from bank officials about the status of their jewellery.
For many, the gold represented more than a financial asset; it was family heirlooms, gifts from parents, or the only form of savings. Customers stated they pledged gold to raise funds for cultivation, purchase seeds and fertilizers, meet irrigation expenses, or cope with medical emergencies and financial hardships.
One customer, Dhana Lakshmi, wife of Krishna Reddy, said she had pledged her daughter's gold chain, given to her during the COVID-19 pandemic to help with medical expenses. She said the family regularly paid interest and renewed the loan, hoping to redeem the ornament once their finances improved. She was shocked to learn the chain is reportedly missing. “How can I face my daughter? How can I return her gold chain?” she asked. “She trusted me with her jewellery during our difficult times. We pledged it only because we had no other option during the COVID crisis,” she added.
The alleged gold loan scam came to light on June 6 when Gavara Lakshmaiah, a small farmer cultivating paddy on one-and-a-half acres, visited the branch to settle his dues and reclaim his family's jewellery. Lakshmaiah had pledged gold ornaments weighing eight kasu and availed a loan of approximately ₹3 lakh. He said he had diligently repaid the loan in instalments. During verification, he was reportedly informed that one of the pledged gold chains was missing. “I had paid the instalments regularly and came prepared to clear the remaining dues and take back my gold. Instead, I was told that one of the chains was missing,” he said.
As news of Lakshmaiah's experience spread, panic set in among other borrowers. Many rushed to verify the status of their own jewellery. Within days, dozens of customers approached the bank seeking confirmation. What initially appeared to be an isolated case has now raised concerns about a broader breach of trust.
The Bank of Baroda management has not yet issued an official statement. Customers are demanding a thorough investigation and the return of their ornaments. Local authorities have been alerted, and an inquiry is expected.
