Today, at the juncture of Union Budget –Interim for the 2024-25, the GJC is presenting their wish list! Here, it is to note that the Budget has to consider the sentiment of the Gems & Jewellery sector is to allow EMI facility!
Currently, loans for purchase of jewellery is being treated as Personal Loans, where the rate of interest is very high.
Purchase of 22kt gold jewellery on EMI on credit card was allowed couple of years back but is currently not allowed. In many parts of India, a father is supposed to give at least 10 guineas which is equivalent to 80 grams as a practice or as a dowry to his daughter.
Presently, 80 grams of gold would cost around Rs. 4.5 lakh and in today’s post-pandemic situation, where people have lost their jobs it becomes really difficult for them buy jewellery. EMI should be available for purchase of jewellery and restriction should continue only for bullion and coins. This will help the industry to move towards organized and compliant business practices. Even, the Finance Minister in the 2018 Budget has announced Gold as an Asset Class. “We urge that the facility of EMI should be extended to the Gems & Jewellery industry which in turn shall lead to substantial growth of the business of the industry and also promote digital payments in the industry” GJC.