Gold EMIs: Pros and Cons

With gold prices soaring consistently for the past one year, it may not always be easy to buy the yellow metal in one go.

Although your family jeweller may be offering recurring deposits such as a gold-saving scheme, you cannot fall back on the option for investment purposes.

And, this is where non-banking finance companies (NBFCs) are stepping in.

Muthoot Finance and Mannapuram Finance are offering schemes whereby you can purchase 24-carat gold coins or biscuits on installments.

"Such a scheme is the best way to purchase gold - if you cannot afford to pay a huge sum at one go - for both investment and consumption purposes," says Avinav Chaubey, head-marketing, Muthoot Finance.

Banks and jewellers, however, do not offer similar schemes. You must pay the entire amount upfront to purchase gold from them.

Banks charge 10-15 per cent more than a jeweller.

Image: A woman tries on a gold bracelet at a jewellery showroom in Siliguri

Text: Business Standard

Images: Reuters