The precious yellow metal Gold’s value especially in our society needs no introduction. Be it in the form of jewellery and heirlooms, gold coins as a traditional gift or purely as an asset, people have always financially and emotionally invested in gold. You must have heard, that in recent times, Digital Gold or DigiGold has gained popularity due to the ease and security of purchase and sale, plus the ability to leverage changes in the Gold rates. But did you know, you can also buy Gold on Easy Installments?
This post provides detailed information about buying Gold on Installments. Gold, being very valuable, purchasing it in lumpsum can be challenging and put it out of the reach of most people, even if it may be they may be able to afford it in the long term. However, that does not mean one should give up on investing in Gold or postpone it for the future. You may want to take advantage of low gold prices, or might want to get started early. So, if time is of the essence you may want to explore different installment options such as – Personal Loan EMI, Credit Card EMI, Wishfin Digital Gold. Let’s explore these in detail…
What are the Methods to Buy Gold on Installments?
Since you know that Gold can be bought on Installments, it’s important to know these methods in detail so that you can choose a suitable option according to your convenience. As we told, there are three methods to buy Gold on Installments and these are Personal Loan EMI, Credit Card EMI and Wishfin Digi Gold Platform. We are showing details about each of them below. First, we are talking about Personal Loan EMI. Please have a look.
Personal Loan EMI
You want to buy Gold but currently don’t have the required funds at your disposal to buy the same. So, what should you do? In such a situation, a personal loan can help you do so. But how? Well, a personal loan is easily one of the finest options among customers to meet their needs. Several lenders provide the personal loan facility through which people can get upto INR 20 lakh and even more at affordable interest rates. The best thing is that customers don’t need to pledge any collateral or security against the loan amount and it can be repaid within a flexible tenure upto 5 years via Equated Monthly Installments (EMIs).
So, if you want to buy gold and are looking to pay the amount in installments, a personal loan EMI could be the best option for you. Just opt for a personal loan, and as soon as you get the loan amount in your account, buy the jewellery you always wanted to and repay the amount via EMI.
Let’s give you an example. Suppose you want to buy Gold Jewellery worth INR 2,50,000. Let’s say you opt for a 4-year personal loan of the same amount to buy Gold on installments. Here, we are considering the interest rate of 11.99% per annum.
So, according to this, your EMI would be INR 5,560 and you will need to pay INR 85,591 as interest outgo. So, your total amount payable will be INR 3,35,591.
However, there are a few things you should be aware of. One of them is the personal loan interest rates which could be a bit higher due to its unsecured nature. To minimize credit risk, lenders charge higher interest rates as compared to other loans. So, you should choose a lender that can offer you affordable interest rates. Personal Loan Interest Rates tend to vary from one lender to another and depend on several factors such as your age, employment type, job history, monthly income, residing city and Credit Score. When you choose a lower interest rate, your EMI amount would be lower and vice versa.
We are showing the personal loan interest rates of top lenders. Please check it.
|Lenders||Rate of Interest (In per annum)|
|State Bank of India (SBI)||9.60% - 13.60%|
|HDFC Bank||11.00% - 21.00%|
|ICICI Bank||10.50% - 18.00%|
|IndusInd Bank||10.49% - 31.50%|
|Standard Chartered Bank||10.75% - 13.00%|
|Tata Capital||10.75% - 18.00%|
|Kotak Mahindra Bank||10.25% Onwards|
|Bank of Baroda||10.00% - 15.60%|
|Punjab National Bank (PNB)||8.95% - 14.00%|
|Central Bank of India||9.85% - 10.05%|
Credit Card EMI
Apart from personal loan EMI, there is another excellent option with which customers can buy gold on installments – Credit Card EMI. If you don’t want to opt for a personal loan and instead have a credit card, you can use it to purchase jewellery and repay the amount via EMI. You must be wondering how? Well, as you know you can purchase anything with your credit card and pay it later within 30-50 days without any interest. But if you want to make a high-ticket purchase with your credit card, lenders provide the option – ‘Convert your Big Purchases into easy EMIs.
So, you can easily buy gold on installments with your credit card. For this facility, lenders will charge a fixed processing fee, which would vary from one bank to another. You can pay the EMI as per your billing cycle every month. The credit card EMI interest rates generally range from 13-18% per annum. There is one important thing you need to remember that you will also need to pay an applicable GST of 18% per annum on the interest amount on your credit card EMI. However, you will not get an extended tenure of 5 years as a personal loan. Credit Card EMI facility can be taken for a maximum of 36 months.
Let’s understand this through an example. Suppose you want to buy jewellery worth INR 1,50,000 lakh. After purchasing with your credit card, you will need to convert this transaction into monthly installments by Internet Banking or Calling to your customer care. Some lenders automatically convert big purchases above a fixed limit into easy EMIs. The interest rate that we are taking here is 15% per annum for a 24-months tenure.
So, you will need to pay an EMI of INR 7,273 to buy gold on installments. Apart from this, the interest outgo will be INR 24,552.
We are showing interest rates for some of the top lenders on the credit card EMI so that you can choose according to your repayment convenience. Do check.
|Lenders||Credit Card EMI Interest Rate|
|SBI Card||22% per annum|
|ICICI Bank||12.99% - 14.99% per annum|
|Kotak Mahindra Bank||12% - 18% per annum|
|YES BANK||13% - 15% per annum|
Wishfin Digi Gold
Nowadays, a new online method has emerged to buy gold digitally. One of the efficient and popular methods is the Wishfin Gold where you can easily sell or buy Digi Gold without any trouble. But do you know that you can buy Gold on installments with Wishfin Gold? This form of Gold is known as the Digi Gold. Loaded with features like 24k Purity of Gold, Security of your Gold, Transparency in the Gold Prices, Flexibility of Selling Anytime make it one of the popular choices among customers. So, how can you buy Gold on Installments with the Wishfin Digital Gold platform?
Well, there are a few steps that you need to follow to buy the Gold on installments. We are showing them below. Have a look.
- The first thing you need to do is to visit the official website of Wishfin Gold. There, you will see the option of ‘Buy Gold’ in the left column. You will also see the Live Buy Price of Gold per gram inclusive of the GST.
- You will have two options there – Either you can Buy Gold by worth or Buy Gold by Weight. But you need to remember that you can only purchase a net amount of 10 grams of Digi Gold. If you want to buy above this amount, you may need to submit additional KYC documents.
- Put the value of Digi Gold you want to buy or the weight of the Digi Gold. After putting in these details, you will see the option of ‘Proceed to Buy’.
- On clicking it, you will get to the Login page, where you will need to make an account by feeding in your Mobile number, Name (same as on the Bank Records), Pin Code and email id (optional).
- After filling these details, you will need to pay the amount required to buy the Digi Gold online. If you want to buy Digi Gold on installments, make the payment with your credit card and convert it into EMIs later.
- After paying the amount successfully, you can see your Digi Gold amount by visiting the ‘Locker Balance’ in My Profile Section.