Now, you can buy physical gold on EMIs
As the festive season sets in, jewellers across the country are stocking up gold and silver. However, gold prices have surged in the past few weeks, because of a global economic uncertainty. Bindisha Sarang reports. The price of defaultbusiness Updated: Sep 16, 2011 23:12 IST
As the festive season sets in, jewellers across the country are stocking up gold and silver. However, gold prices have surged in the past few weeks, because of a global economic uncertainty.
Given such high prices, you can consider buying physical gold in small chunks. Here are three ways to buy physical gold through EMIs.
Easy Gold Scheme
You can buy gold bars, supplied by Religare Bullion. Distributed by Bajaj Capital Ltd, these 24-carat bars are of 99.9% purity and certified by MMTC. You can apply for the product online at www.bajajcapital.com.
Options: There are two time period options under this scheme-12 months and 24 months. The minimum order quantity for the 12-month option is 10gm and for the 24-month option is 20gm, and further in multiples of 10gm. The denominations of gold bars available are 10gm, 50gm and 100gm.How it works: You need to pay a fixed upfront amount of around 15% of the current gold price and the remaining amount will be converted into EMIs for 11 or 23 months depending upon the option you choose. "Under this scheme the customer will be able to buy gold through easy monthly instalments via ECS (electronic clearing service)," said Harish Sabharwal, chief operating officer, Bajaj Capital Ltd. "The customer will not face price volatility as the price will be freezed."
Once you are through with all instalments, you can collect the gold bar from any of the Religare Bullion centre.
Things to keep in mind: All you need to do is apply online. Also, you will not face price volatility since the price is locked at the prevailing rate when buying the yellow metal. (see table).
This scheme is offered by Muthoot Fincorp Ltd. Under this scheme as well, you can buy 99.9% pure gold through EMIs.
Options: Here too, you will have to pay a margin money and repay the balance amount in EMIs. However, under this scheme you can also choose the daily repayment scheme.
You can buy gold coins in denominations of 1gm, 2gm, 4gm, 8gm, 20gm and 100gm. The downpayment or margin money is a minimum of 5% and maximum of 20% for amount up to Rs25,000 and 30% for amounts greater than Rs25,000. If you choose the daily scheme the margin money is only 5% up to 8gm. However, if you want to buy more that 8gm, you have to pay a margin money of maximum 20%. You will be able to get the gold once you complete paying all the EMIs.
How it works: You will have to make a downpayment and pay the balance amount as EMIs. But you will have to bear an interest on the balance amount.
Things to keep in mind: You can pay through cash as well.
Gold Harvest Scheme
Under this scheme, you can buy gold jewellery from Tanishq on instalments.
Options: At present, there are two schemes known as the 11+ 1 months and the 18 months plan. The minimum instalment value is Rs500 and you can increase it to any amount in the multiples of Rs500.
The 11+1 months scheme: You invest a fixed amount every month with Tanishq for 11 months. The 12th month instalment is paid by Tanishq.
The 18 months option: You have to invest for 18 months. However, the amount here can be flexible.
Things to keep in mind: Keep in mind that branded jewellery is usually expensive than regular jewellery.