Novel scheme for goldsmiths from BOI

Mumbai, June 26 (UNI) Bank of India has launched a scheme 'Star Swarnakar Suvidha' for providing loan in the form of gold directly to jewellery manufacturers.

The bank, which is nominated for the purpose of import of gold, will use the facility for providing the above, a release issued by the bank here today said.

It will provide assistance to individual jewellery manufacturers, who are dependent on the jewellery traders for their raw material needs. The proposed scheme will finance them, provide skill development programme in collaboration with SIDBI, and also tie-up with retailers for sale.

The jewellery manufacturers and jewellery traders have been procuring gold from Metals and Minerals Trading Company (MMTC) , incurring additional burden on bank guarantee commission, as their bankers are not authorised to import gold directly.

Bank of India can now offer them gold under the scheme at competitive prices-by saving them the above three per cent commission.

The bank, in tie-up with SIBDI, will also be involved in upgrading the skills and practices of the jewellery makers to update them with the latest in technology and to improve the quality of the finished product and make them more competitive in the market. Goldsmiths are eligible to be covered under this scheme.

The scheme was recently launched at Karaikudi village in Tamil Nadu by Union Finance Minister P Chidambaram.

As many as 150 people have been extended the loan under a cluster-financing approach. The beneficiaries get a six-year term loan with a six-month moratorium, at a competitive interest rate of 9.5 per cent per annum, the release added.

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