The All Kerala Gold & Silver Merchants Association has requested the Union Finance Ministry to enable EMI facility for gold jewellery purchase. This would empower middle-income households to plan their purchases and boost overall retail growth. they stated.
Gold has become increasingly inaccessible due to price surge as the rates have increased by over ₹35,000 per 8 grams in the last five years. This has made it extremely difficult for the middle-class Indian households to purchase gold for weddings, festivals and other cultural traditions.
Such a step would formalise demand and bring more transactions under the purview of GST and BIS compliance, Association President K Surendran and General Secretary S Abdul Nazar said in a representation to the Union Finance Minister.
At present, EMI and consumer credit facilities are available for various consumer durables. However, gold — one of the most trusted, secured and inflation-resistant assets — is excluded from such facilities. “This anomaly is unfair to consumers and detrimental to the organised jewellery trade, which is trying to remain competitive against informal and parallel channels,” they said.
EMI facilities can be CIBIL score–linked, with blacklisting provisions for defaulters, just like in other NBFC or retail lending systems. By implementing credit-scored and capped EMI models, the government can ensure a secure and responsible rollout of this facility.
The association urged the Ministry to initiate discussions with RBI, IBA, and NBFCs to introduce and regulate EMI-based gold jewellery purchases through compliant retail channels under transparent, credit-linked, and GST-tracked conditions.
India continues to hold the position as the largest private holder of gold with estimated household gold reserves ranging from 25,000 to 30,000 tonnes. Kerala alone accounts for nearly 28 per cent of India’s annual gold consumption, making it a significant contributor to both trade volumes and tax revenues in the sector. However, the volume of annual gold imports has dropped sharply in the past few years — from approximately 1,000 tonnes to under 700 tonnes, reflecting a clear decline in demand and affordability, the members said.