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Tuesday, 27th June 2006 (5651 views)

Bank of India (BoI) has launched a new means of financing for gold jewellery manufacturers to help them compete on the world stage.

The bank will issue loans to the manufacturers directly in gold, without the effect of the hefty bank guarantee commissions that are charged by lenders who are not permitted to import gold directly.

The gold loans will last for six years, with a six-month moratorium and a competitive interest rate of 9.5 per cent.

In addition to the loans themselves, the Star Swarnakar Suvidha project will also provide skills training to the goldsmiths, designed to improve the quality of finished Indian jewellery products and make them more competitive with those produced in other countries.

The manufacturers will also have access to the latest industrial technology and finally be matched up with retailers who can sell their products.

Launched in Tamil Nadu, the BoI loans have thus far been issued to 150 jewellers in a cluster-financing method.

 

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