Gold Metal Loan (specialized product for Gems & Jewellery Industry)

A gold metal loan (GML) is a method that allows jewellery manufacturers to borrow gold instead of rupees and pay off the GML with the money they make from sales.

According to current RBI rules, banks that have been designated to import gold may lend domestic jewellery manufacturers gold (metal) for export or non-export purposes. Only gold jewellers who are also gold jewellery producers are eligible for a gold (metal) loan. Jewellers who have taken out loans through the Gold Metal Loan (GML) Scheme are not permitted to sell their gold to third parties. In light of the ongoing volatility in gold prices, banks obtain sufficient margin and collateral security for bank financing.

GML providing banks also do extending gold metal loans to jewellers on the basis of StandBy Letter of Credit (SBLC) / Bank Guarantee (BG) issued by other banks (non-nominated banks for GML)

Features and Benefits

  • Fulfils working capital requirement of jewellery manufacturers
  • Types of facilities available: Fixed term Gold Metal Loans and Gold Overdrafts
  • Upfront delivery of gold with flexibility of fixing the gold price within 180/270 days
  • Repayment of Gold Metal Loan in equivalent INR
  • Attractive interest rate

We have expertise in GML and assist you in getting the most competitive interest rate in the banking industry.