Gold rental business booms as Indian families rent jewellery for weddings

A greatandhra.com report has revealed a growing practice in Indian weddings where families rent expensive gold and diamond jewellery from merchants rather than buying it outright, paying a rental fee of 3 to 5 per cent of the jewellery's value. Under the arrangement, a family needing ornaments worth, say, Rs 10 crore pays the full amount to the merchant, uses the jewellery for 15 days to a month, then returns it for a refund minus the rental charge.

The practice is driven by social pressure on brides and female family members to display genuine gold and diamond ornaments at weddings. Imitation jewellery is cheaper but some guests can tell the difference, the report says. The service is especially popular among business families seeking to maintain their image in social and business circles.

While the cost of renting is substantial, it is far less than purchasing the ornaments outright. For merchants, the wedding season offers a lucrative income stream. The report does not name any specific jeweller or family using the service.