Can We Buy Gold on EMI in India? Explained

For Indians, gold is not just a metal, but a symbol of culture, status, and tradition. Beyond its cultural significance, it is also a trusted investment valued across generations. With gold prices rising, more and more buyers have started opting for the EMI option instead of buying it all at once. Buying gold on EMI allows you to easily split the expense into convenient monthly instalments, making affording gold more manageable and comfortable.

Table of Content

• Why Buying Gold on EMI has Become a Major Trend?
• Step-by-Step Process: How to Purchase Gold on EMI
• Does Purchasing Gold on EMI Affect Resale Value?

So, if you are considering EMI for gold purchase, here is all you need to know:

Why Buying Gold on EMI has Become a Major Trend?

• High Gold Prices: With gold prices reaching record highs, opting for EMIs allows you to easily manage the cost through monthly payments.
• Easy Availability of Financing: Many jewellers now allow you to buy gold on EMI through credit cards, debit cards, NBFCs, digital finance apps, and buy-now-pay-later platforms, making financing more accessible.
• No Need to Postpone Purchase: With gold costs fluctuating frequently, an EMI help you to lock in the current price. Thai allows you to take the gold home immediately instead of waiting for the time when you have enough money saved.
• Growing Preference for Online Gold Purchases: E-commerce platforms combined with secure digital payment options make the online gold buying process effortless, while instant EMI options add extra convenience for modern consumers.

Step-by-Step Process: How to Purchase Gold on EMI

Now that you know you can buy gold on EMI, here is a step-by-step process to actually purchase it: -

• Start by selecting the gold jewellery or item you want to purchase. Make sure to check gold purity, hallmark certification, making charges, and more while buying.
• At checkout, you will find various EMI methods such as credit card, debit card, NBFCs, and more. Before finalising any EMI plan, review the interest rate, processing fee, tenure, down payment, prepayment charges, and such parameters.
• Pick a suitable EMI tenure for repayment. Shorter tenures offer low interest rates but higher monthly payments, while longer tenures reduce the monthly burden but may incur more interest over time.
• Pay the down payment, if required. Some EMI plans may require some upfront payment, usually between 10% and 30% of the gold’s value, before approval.
• Submit the KYC and other required documents to the seller or financing partner. Some common document requirements include:
  • Adhaar card
  • PAN card
  • Recent photographs
  • Address proof
  • Bank account details
  • Income proof (in selective EMI schemes)
• Once your EMI plan is approved, you will receive possession of the gold item. The financing company will pay for the gold on your behalf, and you will pay them monthly EMIs. Ensure that you collect documents, such as an invoice or bill, a purity certificate, a hallmark certificate, etc.
• Ensure timely EMI payments to avoid penalty charges and have a stress-free ownership experience. 

Suggested Read: What are some tricks to buy gold online or offline?

Does Purchasing Gold on EMI Affect Resale Value?

Gold is gold. Whether you buy it upfront or through EMI, its resale value will not be affected. The only things that actually matter when it comes to gold resale value are:

• Gold purity
• Net gold weight
• Current gold rate

However, there are a few factors that you must understand: -

1. EMI Charges Do Not Add to Resale Value

While buying gold on EMI, you may pay some extra money in processing fees, interest rate, or taxes that won’t be added to the overall resale value. For instance, if you buy the gold item for 80,000 and pay 85,000 in EMI, the extra 5,000 will not be recoverable in resale.

2. Gold Purity and Documents Always Come First

The resale value of your gold will definitely be higher if you have its proper documentation, such as purity and hallmark certificates, purchase invoice, and weight details.

3. Jewellery vs. Gold Coins vs. Bars

The resale value of your gold item can also vary depending on what you buy. Jewellery generally get a lower resale value as compared to gold coins and bars because the making charges are not recovered when you sell.

Suggested Read: Gold Loan With EMI Or Overdraft – Which One To Choose?

In case you don’t want to sell your gold at all, you can always opt for a gold loan. A loan against gold allows you to pledge your gold jewellery or coins as collateral to borrow money, providing quick funds with lower interest rates than other loan types.

With years of expertise, Muthoot Finance is the place you can trust for gold loans. With competitive interest rates, minimal documentation, easy eligibility, and a hassle-free process, we aim to make it simpler for you to access funds when you need them the most. For more information, visit our website or your nearest Muthoot Finance branch.