Gold Loan Scheme, Finance Minister Chidambaram's brainchild launched
29 Jun '06
1 min read
Gold being safest investment, has led to the demand of yellow metal increasing constantly as India's imports reached 1,000 tons of gold annually accounting for 50 percent of imports from the total gold production across the globe.
Union Finance Minister P Chidambaram launched a gold loan scheme in his hometown for the benefit of jewellers recently.
Finance Minister claimed that smuggling of the yellow metal had reduced.
Chidambaram handed over 755 grams of gold worth Rs.6 crores as loans to 20 jewellery makers as a token disbursal.
Gold loan scheme, the brainchild of the Finance Minister, facilitates jewel makers to obtain loans in the form of gold to help improve their business.
Loan is being offered by the Indian Bank and Bank of Baroda with financial assistance from Small Industrial Development Bank of India (SIDBI).
The scheme would enable the goldsmiths not only to obtain pure quality assayed gold as loans for a reasonable interest from the banks, but also help create new gold creations with updated technology.
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