What are different types of Saving Schemes given by Jewellers in India?


What Are the Different Types of Saving Schemes Offered by Jewellers in India?

In India, gold is not just a precious metal—it’s a symbol of wealth, tradition, culture, and emotional value. Be it weddings, festivals, or important milestones, gold jewellery has an integral role to play in Indian households. However, buying gold, especially in the form of jewellery, can often be a financially significant decision. Recognizing this, many jewellers across India have introduced various gold saving schemes or jewellery purchase plans to help customers accumulate funds or gold systematically over time.

These schemes are designed to make gold purchases more affordable and accessible for the common man, by allowing them to invest smaller amounts regularly, typically every month. In return, jewellers often offer benefits such as bonuses, discounts on making charges, or even price protection against gold rate fluctuations.

This article explores in-depth the different types of saving schemes offered by jewellers in India, how they work, and what customers need to keep in mind before enrolling.

1. Monthly Installment Schemes (Gold Purchase Plans)

This is the most common and widely offered saving scheme by jewellers in India.

How It Works:

In a monthly installment plan, customers commit to paying a fixed sum every month for a set period, generally between 10 to 12 months. At the end of the term, the jeweller adds a bonus (usually equivalent to one month’s installment or a fixed percentage of the total savings) and allows the customer to redeem the total value to purchase jewellery from the store.

Features:

  • Monthly contribution can range from ₹500 to ₹10,000 or more.

  • At the end of the tenure, a bonus or discount is provided by the jeweller.

  • The saved amount can only be used to purchase gold or diamond jewellery.

  • Making charges may be discounted or waived partially as part of the benefits.

Popular Examples:

  • Tanishq Golden Harvest Scheme: Pay for 11 months, get a special discount on purchase in the 12th month.

  • Kalyan Jewellers’ Smart Gold Plan

  • Malabar Gold & Diamonds’ Gold Purchase Plan

Pros:

  • Easy on the pocket with monthly installments.

  • Bonus benefits enhance overall purchasing power.

  • Ideal for saving up for wedding or festival jewellery.

Cons:

  • Cannot withdraw money in cash.

  • Must purchase jewellery from the same jeweller.

  • Gold rate is applied at the time of purchase, not during installments (in most cases).

2. Gold Weight Accumulation Schemes

This scheme is particularly useful during periods of fluctuating gold prices.

How It Works:

Instead of saving money, customers accumulate gold weight each month based on the prevailing gold rate on the day of deposit. This means you’re locking in the gold weight and protecting yourself from price hikes in the future.

Features:

  • Each month’s contribution is converted into gold weight.

  • At the end of the tenure, the customer has accumulated a specific weight of gold.

  • Redeemable as jewellery at the end of the scheme.

Ideal For:

  • Investors or buyers concerned about increasing gold prices.

  • Those looking to accumulate gold over time rather than just cash.

Pros:

  • Shields against future price hikes.

  • Transparent accumulation in grams.

  • Encourages long-term gold planning.

Cons:

  • Not all jewellers offer this scheme.

  • Making charges may still apply when converting to jewellery.

3. Advance Booking or Rate Protection Schemes

This scheme allows customers to book gold at a specific rate in advance.

How It Works:

Customers pay an advance amount to lock in the gold rate on a particular day. If gold prices increase, the customer is protected and can still buy at the booked rate. If gold prices decrease, some jewellers allow them to buy at the lower rate (depends on terms).

Features:

  • Mostly short-term (30 to 90 days).

  • Option to book weight or amount.

  • Ideal for those planning a near-future purchase.

Example:

  • GRT Jewellers’ Golden Eleven Flexi Plan

  • Jos Alukkas Gold Rate Protection Plan

Pros:

  • Great for volatile gold price periods.

  • Helps in budget planning.

  • Flexible booking and redemption.

Cons:

  • Limited to short-term savings.

  • Not all jewellers offer rate protection if prices fall.

4. Jewellery Purchase Voucher Schemes

A more flexible savings option.

How It Works:

In this scheme, customers purchase vouchers or coupons of a fixed value every month. These vouchers are later redeemable for jewellery purchases after a fixed tenure or during sales and festivals.

Features:

  • Acts like a recurring jewellery wallet.

  • Often comes with festive offers or added value upon redemption.

  • Can sometimes be transferred or gifted.

Pros:

  • Can be used during sales to maximize value.

  • Convenient to save with flexibility on redemption time.

  • Useful as gifts or part-payments for larger purchases.

Cons:

  • No bonus accumulation in most cases.

  • Limited redemption terms may apply.

5. Digital Gold Saving Plans (with Jeweller Partnerships)

The digital era has brought a new way to accumulate gold.

How It Works:

Some leading jewellers now partner with fintech companies or operate their own digital platforms to offer digital gold saving schemes. Customers can buy gold in small quantities online (as low as ₹100 or 0.1 grams) and later redeem it in the form of jewellery or physical gold.

Features:

  • Real-time tracking of gold savings via app or website.

  • Redemption at partnered physical stores.

  • 24/7 convenience and fully digital process.

Popular Providers:

  • Tanishq Digital Gold (through SafeGold)

  • MMTC-PAMP partnered jewellers

  • Paytm, PhonePe, and Amazon also offer digital gold buying that can be linked to jeweller redemptions.

Pros:

  • Ideal for tech-savvy customers.

  • Flexibility to buy and redeem anytime.

  • Transparent, with real-time price updates.

Cons:

  • Making and delivery charges may apply on physical redemption.

  • Less personal touch compared to traditional jewellery buying.

Key Benefits of Jewellers’ Saving Schemes in India

  • ✅ Affordability: Makes buying gold achievable for the average household.

  • ✅ Systematic Savings: Encourages disciplined, monthly saving habits.

  • ✅ Bonus Rewards: Many schemes offer an extra installment, discounts, or gold weight benefits.

  • ✅ Customization: Customers can choose the value, tenure, and sometimes even redemption options.

  • ✅ Event Planning: Ideal for wedding trousseaus, festival shopping, or long-term investments.

Things to Watch Out For

Before enrolling in any jewellery saving scheme, it’s essential to keep the following points in mind:

  1. Read the Terms & Conditions Carefully – Each jeweller’s scheme may vary slightly in benefits, tenure, or redemption policies.

  2. Clarify the Redemption Process – Some schemes allow redemption only in jewellery, not gold coins or cash.

  3. Check Making Charges – Some plans offer discounts, but others might have standard or higher making charges.

  4. Tax Implications – Understand any GST applicable on purchases, especially if you're redeeming a large amount.

  5. Trust the Brand – Always go with reputed jewellers to ensure safety and transparency of your investment.

Final Thoughts

Gold saving schemes offered by jewellers in India are an excellent tool for those who want to gradually build their gold assets without feeling the burden of a large one-time payment. With multiple options—from traditional monthly installment plans to digital gold saving apps—there is something for everyone.

These schemes are especially popular among families planning for weddings, anniversaries, or major festivals, where gold purchases are customary. By choosing the right plan and understanding its benefits and limitations, you can make your gold buying journey both rewarding and hassle-free.


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