Recently jewellers have been providing EMI facility to the consumers and it works similar to loan facility.

Rajiv Popley, director of Popley Group, says, "We have been offering the EMI facility for gold purchases for the past five years through credit cards. We have a tie-up with Citibank and ICICI Bank, under which the EMI facility can be utilised. Most people take this facility."

"There is no down payment required and the interest charged is 0% for three months," explains Popley. "Buying gold is a spontaneous decision and the EMI on credit card facility can be utilized in seconds, while the bank loan is a tedious process. No one would undergo a tedious process when the shopping is spontaneous," he elaborates.

However it should be noted that EMI on credit card facility costs a borrower more. When a customer uses EMI on credit card facility for six months, he ends up paying 8-9% more than the purchase price. This is because banks usually charge an interest rate of around 1.5-3% per month, apart from the processing charge for the EMI on credit card facility.

So if gold lovers are keen to make purchases in this season, they must stay alert while choosing the option for purchase. The Indian market does not provide enough options for the gold buyers.