G.R. Thanga Maligai (GRT Jewellers) is a well-established jewellery retailer based in South Chennai, offering a rich heritage of bespoke jewellery designs since its founding in 1964. Known for providing high-quality, affordable jewellery, GRT caters to various customer preferences, blending traditional craftsmanship with modern designs.
1. GRT Jewellery Plans: Golden Eleven Flexi Plan:
Monthly Advance Payment
- Equal and continuous payment for 11 months with no extension of tenure or transfer of amount allowed.
- Payments due by 10th of each month; no interest applicable.
Jewellery Purchase Benefits
- After 11 months, customers will be eligible for No Wastage (VA) up to 18% or 50% discount on Wastage (VA) up to 18%.
- For diamond, platinum, silver jewellery, benefits will be provided as per the plan’s terms.
Payment Rules and Limits
- Monthly advance above Rs.17,000 must be paid via UPI, DD, Cards, NEFT, or RTGS, and not in cash.
- Total cash payments cannot exceed Rs.1.99 lakh as per government regulations.
- No advance payment beyond the stipulated period or multiple-month payments allowed.
Discontinuation and Wastage Discounts
- Before 5 months: No benefit on Wastage (VA) and only accumulated value can be redeemed.
- 6th-10th month: Gradual discount on Wastage (VA), increasing from 50% to 100%.
- 10th month redemption: 100% No Wastage (VA) up to 18% or 50% discount on Wastage (VA) up to 18%.
KYC and Nomination
- KYC is mandatory for enrollment and updates (address change, lost receipt book).
- Nominee can be assigned with KYC; guardian acts as nominee for minors.
Jewellery Purchase and Redemption
- Advance payments can be used at any GRT Jewellers showroom in India.
- Purchases must be made between the 10th month and within 360 days; otherwise, a refund will be provided.
- Balance advance not refundable in cash, can be adjusted on gold or silver coins.
Excess Purchase Discounts
- 20% discount on Wastage (VA) for excess weight purchased over plan eligibility.
- Wastage (VA) on excess jewellery weight/amount to be borne by the customer.
- GST and other government levies are to be paid at the time of purchase or delivery.
2. One-Time Advance Plan:
Enrollment and Payments
- Minimum enrollment value: Rs.25,000; initial advance payment can be any amount.
- Account non-transferable once created.
- Payments via Cash, Demand draft, Cards, NEFT, RTGS, UPI, and Cheques.
- Cash limit Rs.1.99 lakh as per government regulations.
- Multiple cash-paid accounts cannot exceed Rs.1.99 lakh in total.
Golden One Flexi Plan (Old Gold Exchange)
- Old Gold melted and valued at prevailing rate.
- Treated as a one-time advance under the plan.
- At maturity: Discount up to 18% on Wastage (VA) (Value Option) or 50% discount on Wastage (VA) (Weight Option).
Jewellery Purchase Benefits
- After 11 months, eligible for 50% discount on Wastage (VA) up to 18% (Weight Option) or No Wastage (VA) up to 18% (Value Option).
- Gold rate at billing time applies for discounts.
- Diamond, platinum, silver jewellery benefits as per plan’s table.
Discontinuation and Wastage Discounts
- No benefits before five months and can redeem the amount paid by paying 100% Wastage (VA).
- 6th-10th month: Gradual increase in discount on Wastage (VA) (from 50% to 100% for value, 25% to 50% for weight).
- 10th month redemption: 100% Wastage (VA) discount (Value Option) or 50% discount (Weight Option).
Plan and Redemption Rules
- One payment per account can be made.
- Multiple accounts allowed.
- Jewellery must be purchased within 360 days of enrollment; otherwise, the advance will be refunded.
- Any balance advance will be adjusted on gold or silver coins and there will be no cash refund.
- Jewellery can be purchased at any GRT showroom in India.
- 20% discount on VA for excess weight purchased.
KYC, Nomination and Compliance
- KYC mandatory for enrollment, address changes, lost receipt books.
- Nominee can be assigned with KYC; guardian signs for minors.
- Customer must present receipt book at purchase.
- Signature verification required at delivery.
- GST applicable at the time of purchase.
Gold Schemes By Kalyan Jewelers
The Dhan Samriddhi Scheme offered by Kalyan Jewellers is a gold purchase plan designed to help customers save systematically for jewellery, with a focus on convenience and flexibility. The details about the scheme are given below:
- Systematic and efficient way to buy marriage jewellery.
- Easy enrollment and online monthly payments.
- Discount Benefits
- 11-month scheme: Discount up to 2.67 times the membership fee.
- 6-month scheme: Discount up to six times the membership fee.
Note:
- Choose either Gold Discount or studded offers.
- Can be combined with seasonal store offers.
- GST applicable on purchases.
- The membership fee is non-refundable.
- Scheme available without membership & gold discount.
- Discount eligibility only for Priority customers.
- Terms and conditions are subject to change.
Malabar Gold And Diamonds Gold Purchase Plans
Malabar Gold & Diamonds offers Gold Purchase Plans to the customers which comes with three different schemes. The details about the schemes are mentioned below:
- Golden Bloom: Allows 11 easy installments and purchase of gold at the end of tenor at gold rate with exemption of up to 18% on making charges.
- Golden Glow: Allows customers to accumulate gold worth instalment amount every month and allows exemption of up to 14% on making charges.
- Golden Bliss: Allows customers to book jewelry 11 months in advance and make purchases without payment of making charges.
Gold Schemes By Tanishq
Here are the details about the Tanishq Gold Harvest - Jewellery Purchase Plan:
- A Golden Harvest account can be opened online via the website or app or visit your nearest Tanishq showroom.
- Monthly instalments can be paid via cash, online banking (SI or ACH), card, or post-dated cheques.
- A fixed instalment amount must be paid for 10 months on the due date each month.
- The minimum deposit value is Rs.2,000, which can be increased in multiples of Rs.1,000.
- A special discount of up to 75% of the first instalment value paid will be provided after 10 months.
- It is mandatory to close the gold deposit account within 400 days from the date of opening the Gold Harvest account.
- Allows the customer to become a member of Titan’s exclusive loyalty program to enjoy special privileges across all Titan formats.
- No Tax Deducted at Source (TDS) applies to Tanishq Golden Harvest discounts.
- Offers additional benefits by combining Golden Harvest benefits with ongoing offers for double advantages.
Lalithaa Jewellery Introduces Excellent Gold Schemes
Lalithaa Jewelry introduces two gold saving schemes, such as Jewellery Pre-booking scheme and Eleven Month Plan. The details about the scheme are given below:
Jewellery Pre-booking scheme:
If you choose to redeem after 11 months, even for jewellery with 14% or 16% V.A. Charges, you will not have to pay any additional 1% as a V.A. Charge.
- After 5 months (150 days): Gold jewellery with V.A. charges of up to 5% can be purchased without any V.A. Charges.
- After 6 months (180 days): Gold jewellery with V.A. charges of up to 6% can be purchased without any V.A. Charges.
- After 7 months (210 days): Gold jewellery with V.A. charges of up to 7% can be purchased without any V.A. Charges.
- After 8 months (240 days): Gold jewellery with V.A. charges of up to 8% can be purchased without any V.A. Charges.
- After 9 months (270 days): Gold jewellery with V.A. charges of up to 9% can be purchased without any V.A. Charges.
- After 10 months (300 days): Gold jewellery with V.A. charges of up to 10% can be purchased without any V.A. Charges.
- After 11 months (330 days):
- Any type of gold jewellery can be purchased without any V.A. Charges.
- Any type of diamond jewellery can be purchased with a 50% reduction in V.A. Charges and Rs.1000 less per carat.
Note: Any amount exceeding the VA charges will be borne by the customers.
Eleven Month Plan- Dhana Vandanam:
The plan offers flexibility to choose weight-based or rupee-based calculation at purchase for maximum benefit along with protection from gold rate changes, zero V.A. charges, a 50% bonus, and flexible, cost-effective jewellery buying.
- On completion of 11 months the plan offers 50% on one month’s installment.
- This allows customers to purchase jewelery with 100% discount on value addition (VA) charges.
- The installment cannot be carried over or paid in advance.
- The members will have to pay the applicable GST (Goods and Services Tax).
- Members will be eligible for 60% and 70% discount on VA charges for those who discontinue the plan after 7th or 8th months and 9th or 10th plans, respectively.
- Gold coins can be purchased using this plan.
- Nominee can be appointed by providing KYC (Know Your Customer) documents of both self and nominee.
Bhima Jewellery's New Gold Schemes
Bhima My Choice offers a range of jewellery purchase plans designed to provide flexible, cost-effective options for customers:
Golden Key:
Get 22kt Gold Jewellery and Gold Coins with no VA/making charges. Upon enrolling you receive a free gold coin with your purchase. Here are the details about the scheme:
- 11-month Easy Monthly Advance (EMA) plan.
- Minimum EMA is Rs.5,000 (in multiples of Rs.1,000).
- Redeem the full EMA amount at the end of 11 months on bhimagold.com.
- Purchase BIS Hallmarked 22K Gold Jewellery or Gold Coins with zero value addition (VA) or making charges.
- GST will be charged as per the applicable rates.
- Free gold coin for every Rs.8,000 enrollment.
- The extra gold value and VA or making charges must be paid by the customer if jewellery weight exceeds eligibility.
- The purchased product will be delivered securely to the residential address.
Kubera:
Benefit from a flat 50% off on accumulated gold weight for VA/making charges on both gold jewellery and coins. Here are the details about the plan:
- 11-month Fixed and Equal Easy Monthly Advance (EMA) plan.
- Minimum EMA is Rs. 2,000 (in multiples of Rs.1,000).
- The weight of 22K gold equivalent to each month's EMA is credited to your Kubera EMA account at the prevailing gold rate on the payment date.
- Redeem at the end of 11 months for BIS Hallmarked 22K Gold Jewellery or Gold Coins with 50% off on value addition (VA) or making charges.
- Gold weight accumulates monthly based on the gold rate on the day of payment.
Samruddhi:
Enjoy up to 20% waiver on VA/making charges for Gold Jewellery and Gold Coins. Here are more details about the plan:
- 11-month Easy Monthly Advance (EMA) plan.
- Minimum EMA is Rs.1,000 (in multiples of Rs.1,000).
- Redeem the total EMA amount at the end of 11 months with full benefits.
- Purchase BIS Hallmarked 22K Gold Jewlery or Gold Coins with:
- Up to 20% off on value addition (VA) / making charges.
- No VA or making charges on selected purchases.
- GST will be charged as per applicable rates.
- The customer will have to pay the remaining balance if VA or making charges exceed 20%.
- Spend only on gold, while VA or making charges are covered under plan benefits.
- If VA/making charges exceed 20%, the extra cost is borne by the customer.
Ratna:
Ratna Plan offers double bonanza on diamond purchases with flexibility to purchase gold ornaments. Here are the features benefits of the plan:
- 11-month plan with Fixed and Equal Easy Monthly Advance (EMA) payments.
- Minimum EMA is Rs.5,000 (in multiples of Rs.1,000).
- Redemption can be done 30 days after the 11th-month payment.
- Choose between:
- Diamond Jewlery with a discount equal to two months' EMA.
- 22K BIS Hallmarked Gold Jewlery with a discount equal to one month's EMA.
- Provides option to switch from Diamond to Gold Jewlery upon maturity.
Golden Key EMA Plan:
Golden Key Easy monthly Advance (EMA) Plan is a 11-month plan that offers multiple benefits which are mentioned below:
- Minimum EMA is Rs.5,000 (in multiples of Rs.1,000).
- Full benefit redemption can be done via bhimagold.com. at the end of 11 months.
- BIS Hallmarked 22K Gold Jewlery or Coins can be purchased with zero VA or Making charges.
- GST will be charged as per applicable rates.
- Free gold coin for every Rs.8,000 enrollments.
- Redeem the total 11-month EMA payment with NO VA or Making charges.
- Extra gold value and VA or Making charges will have to be paid by the customer if jewelry exceeds eligible weight.
- Jewelry will be delivered directly to your home after purchase.
How does Jeweller’s Gold Schemes work?
Jewellery investment schemes typically work in the following ways:
- Fixed Monthly Payment Scheme: You pay a fixed monthly amount throughout the term, and the jeweller adds an additional month's installment to your account. At the end of the term, you can use the accumulated amount to purchase gold jewellery at the prevailing rate.
- Gold Coin Purchase Scheme: Some jewellers allow you to buy gold coins with the invested amount, but cash redemption is not an option in such schemes.
- Discounts on Making Charges and Wastage: Certain jewellers offer discounts or even waivers on making charges and wastage, reducing the overall cost of jewellery purchase.
- Fixed Weight Scheme: In this scheme, you decide the amount of gold you want to accumulate each month. Payments are based on the current gold rate for the weight you specify.
Gold Schemes by Banks
Gold schemes were introduced in 2015 as part of the Indian government’s efforts to encourage the productive use of idle gold. These schemes allow individuals, households, and institutions to deposit or invest their unused gold in banks. The deposited gold is utilised by banks to loan it to jewellers or fulfil other domestic gold demands, reducing India’s dependency on gold imports and saving valuable foreign reserves.
To achieve this, Prime Minister Narendra Modi launched three flagship gold schemes:
- Gold Monetisation Scheme (GMS)
- Sovereign Gold Bond Scheme (SGB)
- Gold Coin and Bullion Scheme
Gold Monetisation Scheme (GMS)
The Gold Monetisation Scheme encourages individuals, households, and institutions to deposit their idle gold in authorised banks. In return, depositors earn interest on their gold holdings while retaining ownership of the asset. The Gold Monetisation scheme consist of previous 'Gold Deposit Scheme’ and the 'Gold Metal Loan’ scheme and the details about the scheme are mentioned below:
Revamped Gold Deposit Scheme (GDS):
Gold Acceptance:
- Deposits accepted at BIS-certified Collection and Purity Testing Centres (CPTCs).
- Banks issue deposit certificates in 995 fineness gold equivalents.
Deposit Options:
- Short-Term (1-3 years): Accepted by banks on their own account.
- Medium (5-7 years) and Long-Term (12-15 years): Accepted on behalf of the Government of India.
Interest:
- Short-term deposits: Interest determined by banks based on market conditions.
- Medium and long-term deposits: Interest set by the government in consultation with the RBI.
Redemption:
- Offers the choice of receiving gold or INR equivalent at maturity.
- Premature redemption: Only in INR for long-term deposits.
- Short-term deposits: Premature redemption can be in INR or gold at the bank’s discretion.
Tax Benefits:
- No tax on interest earned under Section 10(15)(vi) of the Income Tax Act.
- Wealth tax exemption on assets deposited under Section 2(ea).
- Capital gains tax exemption on bond trading or redemption under Section 2(14)(vi).
- Jewelry seizure limits: 500g (married woman), 250g (unmarried woman), 100g (male).
Revamped Gold Metal Loan Scheme (GML):
Gold Metal Loan Account:
- Opened for jewelers, denominated in grams.
- Gold mobilized from GDS under short-term loans.
Gold Delivery to Jewelers:
- Refiners supply physical gold upon loan approval.
- Banks record transactions in jewelers’ Gold Loan Account.
- Interest: Banks set interest rates with RBI guidance.
- Loan Tenor: Currently 180 days; subject to future revisions.
Indian Gold Coin:
- Part of Gold Monetisation Programme – First national gold coin minted in India.
Design:
- National Emblem (Ashok Chakra) on one side.
- Mahatma Gandhi on the other side.
- Denominations: 5g, 10g, 20g.
- Purity: 24 carat, BIS hallmarked.
- Features: Advanced anti-counterfeit measures and tamper-proof packaging.
Amendments to Gold Deposit and Gold Coin Schemes:
- Gold Deposit Scheme (GDS) Changes:
- More public sector bank branches designated as GMS service centers.
- Dematerialization of MTGD and LTGD certificates to make them tradeable.
- Jewelers and refiners engaged as Gold Mobilisation Agents.
- Minimum deposit reduced to 10g.
- Banks can buy locally refined gold and lend it to the interbank under GMS.
- GMS Digital Platform to be developed.
- Gold Metal Loan (GML) Changes:
- Repayment is done in 1kg.
- Locally sourced IGDS bullion can be used for loan repayment.
- GML is available to all jewelers with a valid working capital credit limit.
Sovereign Gold Bond Scheme (SGB)
Under this scheme, the Reserve Bank of India (RBI) issues gold bonds on behalf of the government. These bonds allow individuals to invest in gold without the risks and costs of handling physical gold.
Key Features:
- Bonds are denominated in grams, with a minimum investment of 1 gram.
- Tenure: 8 years, with an option to exit after 5 years.
- Subscription limits: 4 kilos per individual or Hindu Undivided Family (HUF) and 20 kilos for trusts annually.
- Interest: Fixed rate payable semi-annually.
- Tax Benefits: Exempt from capital gains tax upon redemption. Long-term capital gains from transfers also enjoy indexation benefits.
- Tradeable: Bonds can be traded on stock exchanges after issuance.
Benefits:
- Hedge against inflation: Protects wealth as gold value appreciates over time.
- Secure: Eliminates risks associated with storing physical gold.
- Liquid: Easily tradable in secondary markets.
Gold Schemes Offered by Banks
In addition to government-backed schemes, several banks in India offer tailored gold schemes to cater to diverse customer needs. Here are some notable examples:
1. Punjab National Bank (PNB) Gold Schemes:
- Gold Loan Scheme: Secure a loan against your gold jewellery or coins at attractive interest rates and flexible repayment options. The scheme offers three types of gold loans, such as:
- Advance Against Gold Jewellery/Gold Ornaments: The plan offers a maximum of Rs.25 lakh loan and the amount is disbursed through the savings account maintained with the bank.
- Advance Against Sovereign Gold Bonds: The plan offers a minimum of Rs.50,000 as loan amount and the amount is disbursed through in the operative account of the borrower with the bank.
- Digital Gold Loan: This plan is applicable for those engaged in any agriculture or allied activities or any activities permitted by RBI under agricultural category. The minimum and maximum loan amount for agricultural and retail purposes are Rs.10,000 and Rs.2 lakh; and Rs.25,000 and Rs.25 lakh, respectively.
2. ICICI Sovereign Gold Bonds:
- Hassle-Free Ownership: Invest in gold without physical possession, eliminating storage risks and costs.
- Tax Benefits:
- No capital gains tax on redemption for individuals.
- Indexation benefits available for long-term capital gains on bond transfers.
- Tradability: Bonds can be traded on stock exchanges within two weeks of issuance, as per RBI notification.
- Transferability: Bonds can be transferred through an Instrument of Transfer, as per the Government Securities Act.
- Minimum investment size is 1 gram of gold.
- Bond tenor eight years with exit option available from fifth year onwards.
- Maximum subscription limit:
- Hindu Undivided Family (HUF): 4 kg
- Trust: 20 kg
- Individuals: 4 kg
3. SBI Gold Savings Scheme:
- Part of the Sovereign Gold Bond (SGB) Scheme issued by RBI.
- Offers tax exemptions on interest income and capital gains.
- Open to individuals, HUFs, trusts, universities, and charitable institutions.
- Bond will be denominated in basic unit of 1 gram.
- The minimum permissible unit for investment is 1 gram.
- Nomination available for the scheme.
- Offers loans against SGB
- Payment for the bond can be done either through cash, cheque, demand draft or electronic banking.
- For online applications, a discount of Rs.50 per gram will be offered.
Benefits of Gold Schemes
Gold schemes offer multiple advantages, making them a popular choice for investors:
- Earn Returns: Convert idle gold into a productive asset by earning interest or bonuses.
- Tax Savings: Certain schemes offer tax exemptions on interest and capital gains.
- Secure Storage: Avoid the risks of theft or loss associated with physical gold.
- Liquidity: Many schemes allow early exit or trading options.
- Support the Economy: Reduce reliance on imported gold, conserving foreign reserves.
Salient Features of Gold Scheme by Banks
Some of the main features of a Gold Scheme are:
- Gold Approval and Verification: Depositors must get approval from authorized collection centers where gold purity is checked before deposit.
- Gold Refining Process: With customer consent, deposited gold is sent to refineries for melting.
- Gold Savings Account: Collection centers issue a certificate, which can be used to open a Gold Savings Account at a bank.
- Storage & Costs: Refineries store the gold at a cost agreed with banks, but customers are not charged any fees for this service.
Things to Remember while Joining on Gold Schemes:
Before opting for a gold scheme by jewellers, you must keep a few things in mind, such as:
- Choose a reputable jeweller: Ensure the jeweller has a trusted track record, as not all schemes qualify as 'deposits' under the Companies Act.
- Understand the scheme: Carefully review the terms and conditions to uncover any hidden advantages or clauses that may affect your investment.
- Know the exit clauses: Be clear on the process for opting out before maturity to avoid any potential losses.
- Invest in hallmarked jewellery: Always opt for hallmarked jewellery to guarantee the purity and quality promised.
- Repayment Option: Bullet payment option is one of the repayment options where monthly interest is calculated but full repayment (principal + interest) can be made at loan maturity.
- Banks or NBFCs: NBFCs offer easier gold evaluation and quicker processing but have higher interest rates. Banks like HDFC provide lower rates, simple documentation, and transparent charges.