Jewellers' body urges lenders to ease credit to prevent shutdown of SMEs

Banks have started stringent third-party inspection, audit and evaluation of collateral jewellery stocks after PNB fraud case

The All India Gems and Jewellery Domestic Council (AIGJDC) has urged lenders to ease the availability of finance to prevent the shutting down of small and medium enterprises (SMEs) in the sector.

Such units are having problems in getting working capital loans from banks, after the tightening of scrutiny since the Rs 130 billion PNB-Nirav Modi scam came to light a month before. Banks have started stringent third-party inspection, audit and evaluation of collateral jewellery stocks.

SMEs and smaller units, especially first-time borrowers, have been facing multiple hardships. Since such units are either wholly owned or partnership start-ups, they are having to