Bank of India has launched a new scheme for providing loan in the form of gold directly to jewellery manufacturers. BoI, which is one of the banks nominated for importing of gold, will use the facility for providing the gold. The proposed scheme, Star Swarnakar Suvidha Scheme, will provide finance to gold smiths, provide skill development programme in collaboration with SIDBI and also tie-up with retailers for the sale of gold jewellery.
Jewellery manufacturers and jewellery traders have so far been procuring gold from MMTC, incurring additional burden on bank guarantee commission, as their bankers were not authorised to import gold directly. Under this scheme, BoI can now offer them gold at competitive prices and save them the three per cent commission.
The bank will launch this scheme in clusters, with each cluster having 100-200 goldsmiths. The first scheme has been launched in Karaikudi in Tamil Nadu.