What is a Gold Scheme by Jewellers?
A Gold Deposit or Saving Scheme by jewellers is a scheme where you can deposit your gold with the jeweller and earn a higher quantity of gold by the end of a year. Sometimes jewellers also give a monthly payment and also return your gold at the end of the term. The main objective of this scheme is to mobilise the gold, make it available from banks on loans, reduce the dependence on imported gold and conserve foreign exchange. Different jewellers have different version of gold saving schemes. Some jewellers require you to redeem your money in the form of jewellery.
Here are the list of Jewellers that offers Gold Schemes
GRT Jewelers Offer New Gold Schemes
Based in South Chennai, G.R. Thanga Maligai, has been offering bespoke jewellery designs at affordable prices, since it was founded in the year, 1964. Recently, GRT launched the Golden Eleven Flexi Plan which allows their customers to make 11 equal advance payments towards purchasing of an ornament every month. On maturity, the customer is free to purchase an ornament from selected categories.
Gold Schemes By Kalyan Jewelers
Kalyan Jewellers have never failed to surprise us with their attractive gold schemes. Recently, they launched Purchase Advance Scheme which allows customers to make advance payments to purchase gold in the future. Instalment amount may vary between Rs. 500 to Rs. 40,000 depending on the ornament already selected. With a maximum tenure of one year, this scheme must be closed by buying a jewellery on the maturity date.
Malabar Gold And Diamonds Smart Buy Scheme
One of the leading jewellery manufacturing companies in India, Malabar Gold and Diamonds recently offered Smart Buy Scheme which allows customers to order an ornament of their choice which may be in stock or out of stock by paying a nominal amount as advance. On an agreed date, payment will be processed and the ornament will be delivered. This offers comes with attractive discounts and interest rate.
Gold Schemes By Tanishq
One of the leading jewellery manufacturing companies in India, Tanishq is known for their unique jewellery designs. Recently, Tanishq launched Tanishq Golden Harvest Scheme, which allows their customers to contribute a nominal amount every month which can be used to buy gold at discounted price on maturity. The deposit periods they offer are 6 and 10 months.
Lalithaa Jewellery Introduces Excellent Gold Schemes
Lalithaa Thanga Maaligai offers a wide range of gold schemes with attractive benefits. They recently launched Jewel Saving Plan, Gold Plus Savings Scheme, 0% Gold Jewellery Purchase Plan and Lalithaa Golden Sparrow. Each scheme comes with its own benefit and aims at increasing the purchasing capacity of the customer by letting them make advance payments towards gold purchase. Lalithaa Jewellery also pays the last month advance for prompt customers.
Bhima Jewellery's New Gold Schemes
One of the most sought after jewellery manufactures in India, Bhima Jewellery, recently launched Bhima Gold Tree Purchase Plan which enables customers to make monthly advance payments for a certain period which allows them to purchase gold on the maturity date. The deposit amount should be in multiples of Rs 250 and the tenure is flexible.
Prince Jewellers launches Excellent Gold Schemes
One of the leading jewellery stores in India, Prince Jewellers recently launched Prince Jewel Plus scheme. As per the scheme, customers can pay 11 months of advance instalments to buy gold upon the maturity of the scheme. The minimum amount currently stands at Rs 1000 and thereafter in multiples of Rs 500 per month.
Gold Schemes Offered By PNG Jewellers
PNG Jewellers recently introduced Suvarna Poornima Plan. As per the new scheme, customers can pay some amount of money every month to buy gold at maturity. This scheme comes with several benefits like discount on making charges, online registration and 12th month free for prompt payers. For more information, read on.
How does Jeweller’s Gold Schemes work?
There are various gold saving schemes offered by jewellers:
- One of the most common scheme is when the jeweller asks you to pay a fixed amount every month during the scheme’s term. An additional month’s installment is added by the jeweller to your account. Money accumulated at the end of the term must be then used to buy gold jewellery from the jeweller itself at the prevailing rate.
- Some jewellers have schemes where you can purchase gold coins with the invested amount. Under this scheme, redemption is cash is not possible.
- Under some schemes, jewellers offers discounts on making charges and wastage and sometimes even a complete waiver.
- Some jewellers allow you to opt for fixed weight schemes where you can decide the amount of gold you want the jeweller to add into your account every month. However, in such cases, you are required to make monthly payments based on the prevailing gold rate on the day of payment for the corresponding weight of gold.
Things to remember:
Before opting for a gold scheme by jewellers, you must keep a few things in mind, such as:
- The jeweller you are investing with, should be of high repute. There is no guarantee that all schemes offered by all jewellers qualify as ‘deposits’ as per regulations of the Companies act. Therefore, the track record of the jeweller should be one of the major deciding factors.
- Understand the scheme in detail before making the decision as you may be missing out on some advantages hidden in the clauses. Be clear of the exit clauses so that you are aware of what to do in case you want to opt out of the scheme before its maturity, without suffering any loss.
- Always invest in hallmarked jewellery so that your jewellery is as pure as promised.
Gold Schemes by Banks
What is a Gold Scheme by Banks?
Announced in the 2015 budget, Gold Schemes were introduced to encourage saving or deposit of idle gold in banks. This idle gold can in turn be loaned to jewellers or used for other purposes. According to the scheme, the bank is required to pay an interest to the depositor and jewellers can directly loan gold from banks. This way, our country can avoid spending on foreign reserves used for importing gold.
Gold schemes allow us to deposit, invest or buy gold. The Prime Minister of India, Narendra Modi has recently launched three gold schemes, namely - the Gold Monetisation Scheme, Sovereign Gold Bond Scheme and the Gold Coin and Bullion Scheme.
The Gold Monetisation Scheme (GMS) has been introduced to replace the existing Gold Deposit Scheme, 1999. Under the GMS, individuals, HUFs and trusts including Exchange Traded Funds and Sebi-registered Mutual Funds can deposit gold at collection centres or purity testing centres that are certified by the Bureau of Indian Standards. The principal and interest towards the deposit is denominated in gold. The deposit tenure ranges from 1-3 years (short-term), 5-7 years( medium-term) and 12-15 years (long-term). The gold deposit has a minimum lock-in period and if prematurely withdrawn can result in a penalty decided by the bank.
Under the Sovereign Gold Bond Scheme, RBI issues gold bonds on behalf of the Indian Government. Gold bonds are denominated in multiples of grams(s) of gold, where the basic unit is 1g. Bond tenure options are up to 8 years where you are given an option to exit in the 5th year. You can buy a minimum of 2g worth of gold bonds and a maximum of 500g worth of gold bond per individual in one fiscal year.
Under the Gold Coin and Bullion Scheme, the government will be issuing gold coins of 5g & 10g initially and then 20g bars will also be available. The coins issued will be the first ever national gold coins with Ashok Chakra engraved on them.
How does Gold Scheme work by Banks?
A Gold Scheme works in the following way:
- Depositors are first required to get an approval for the gold they want to deposit. Approval can be obtained from approved collection centers, where verification of the gold’s purity takes place. Then the gold is allowed to be deposited.
- The collection centers send the deposited gold to refineries in order to melt it. This is done only after the customer’s consent.
- A certificate for the gold deposited, is issued by the collection centers, which can then be provided to the bank in order to open a Gold Savings Account.
- The refineries store this gold at a mutually decided fee between them and the bank. Customers are not required to pay any charges towards this service.
Salient Features of Gold Scheme by Banks
Some of the main features of a Gold Scheme are:
- A minimum of 30 gram of gold can be deposited under this scheme.
- Gold can be deposited in all forms such as coins, bars or jewellery.
- There are 331 collection centers where gold can be tested and deposited.
- Gold schemes are available for a short period (1- 3 years), medium (5 – 7 years) and long term (12 – 15 years). Different tenures can be availed at different interest rates.
- You have the option of breaking the lock-in period, however you will be required to pay a penalty in that case.
- The interest rate depends on the value of the gold deposited and is payable in rupees.
- Interest rates for short term gold deposits are decided by banks, while interest on medium and long-term gold deposits is set by the Government.
- Redemption on short-term deposits can be made in cash or gold, however redemption on long and medium term deposits is done only in cash.
- Another beneficial feature of a gold scheme is that the interest paid towards the deposit is tax exempted.
- The bank is free to use the deposited gold in any way it sees fit, such as RBI Gold reserves, auctioning, etc.
- Gold that has been deposited for a short period can be loaned to jewellers.
- Jewellers can also open a Gold Metal Loan Account, where gold is denominated in grams.
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