The State Bank of India (SBI) has finally commenced facility to offer gold loan scheme to gems and jewellery sector. This has been an early awaited move by the sector and will hopefully let gold business owners breathe easier. It is believed that the scheme will be launched by SBI’s chief general manager Sanjay Srivastava at the bank’s headquarters in Chowk Bazaar, Gujarat. Following the launch, diamantaires and jewellery owners will be able to apply for the loans.

Sources in the Gems and Jewellery Export Promotion Council (GJEPC) revealed that jewellery manufacturers were using gold from Government approved bullion agencies in Mumbai. Now, they will be able to obtain gold locally from Surat thanks to term loan by SBI which offers various discounts on existing interest rates. This move is expected to provide a much needed to boost to the gems and jewellery sector in Surat and south Gujarat.

The daily consumption of gold is pegged at 80-100 kg by jewellery manufacturing units in Surat. The introduction of loan facility will see an increase in gold consumption.