You don’t need to pay the full price upfront when buying gold anymore. With so many financing options available, you can now buy gold on EMI and spread your purchase cost into smaller monthly instalments.
While this facility has made gold purchases more accessible, EMI availability can vary by seller, gold type, eligibility, payment options, repayment tenure and several other factors. However, it should not be confused with gold loans, where you borrow money by keeping your gold as security.
Can You Buy Gold on EMI?
“Can we buy gold on EMI?” is a common question among buyers who are still not fully aware of EMI gold purchases.
So, yes, you can choose the EMI option for your gold purchases if you can't pay the full amount at once. Many jewellery retailers, financial institutions, banks, and online platforms offer instalment plans. Depending on the provider, the EMI may be available through:
- Credit cards
- Debit cards (limited options)
- Jewellery financing
- Buy Now Pay Later (BNPL)
- Consumer finance companies, etc.
Buyers generally use these plans to buy gold jewellery, especially bridal or designer collections that can be a steep purchase otherwise. Some sellers may also let you buy gold coins or bars on EMI, but it depends on lender policies.
At a glance, it may look like this.
| Gold Purchase Options | EMI Availability | Common Tenure | How To Get It |
|---|---|---|---|
| Heavy Gold Jewellery | Yes | 3–24 Months | Store finance partner, Credit Card |
| Light Gold Jewellery | Yes | 3–12 Months | Credit card, store EMI |
| Gold Coins | Limited | 3–6 Months | Credit card conversion after purchase |
| Gold Biscuits and Bars | Limited | 3–6 Months | Credit card conversion after purchase |
| Online Jewellery | Yes | 3–24 Months | EMI on checkout, BNPL |
| Digital Gold | Mostly not | - | You may choose an SIP alternative |
How to Buy Gold on EMI?
If you know how to buy gold on EMI, the process is fairly straightforward. The exact steps may vary depending on the seller and financing provider, but you generally need to:
- Select the gold you want to purchase and check its purity, weight and applicable charges.
- Check EMI availability through the seller, bank or financing partner.
- Choose an EMI option and repayment tenure that suits you. Generally ranges from 3 to 24 months.
- Review the terms, including interest, processing fees, down payment and total repayment amount.
- Complete the required KYC or eligibility checks and confirm the purchase.
- Receive the gold according to the seller's delivery or collection terms and pay the EMIs as scheduled.
Gold Purchase on EMI: What are the Costs?
The cost of a gold purchase on EMI is not limited to just monthly instalments. The final amount you pay can include the gold price, financing charges, taxes and other applicable fees. Check each component before choosing an EMI plan.
- Purchase Amount: This is the amount you need to pay for the gold and any applicable jewellery charges.
- Interest or EMI Charges: Some EMI plans charge interest on the amount you finance, which can add to your total purchase cost.
- Processing or Convenience Fees: Your financing provider may charge a processing or convenience fee. Check whether you need to pay it upfront or along with your EMIs.
- GST and Jewellery Charges: A 3% GST applies to gold, and 18% GST applies to jewellery making.
- Down Payment: Some EMI plans require you to pay part of the purchase amount upfront. This can reduce the overall amount you finance, but you must be comfortable paying it.
Can You Buy Gold Jewellery Online on EMI?
You can buy gold on EMI online if the jewellery platform offers an eligible EMI option through its payment or financing partners. At checkout, you can select the available EMI option, choose the repayment tenure and complete the required payment or eligibility checks.
Making an online gold purchase on EMI can feel quite similar to shopping for any other item online. However, because of the cost involved, it can be much riskier if you are not careful. Always check:
- Seller Credibility: Buy from a trusted platform with clear pricing and customer policies.
- Gold Purity and Hallmark: Check the stated purity and hallmark details before buying, as it is your proof of purity.
- Making Charges: These can add significantly to the cost of jewellery, so compare them.
- Return and Buyback: Understand whether the jewellery can be returned, exchanged or bought back and under what conditions.
- EMI Terms: Check the interest, fees, tenure and total amount payable, rather than looking at the monthly EMI alone.
Gold Purchase on EMI vs Gold Loan
Some people may confuse buying gold on EMI with a gold loan, but they are two very distinct things. In the former case, you purchase new gold and pay its cost in monthly instalments, whereas in the loan, you pledge your owned gold to borrow money.
| Factor | Gold Purchase on EMI | Gold Loan |
|---|---|---|
| Purpose | Buying new gold | Borrowing money against gold you already own |
| Ownership | You buy the gold and become its owner | You are the legal owner and the lender becomes a custodian |
| Do you receive money? | No, you don’t receive money, but repay the gold and EMI cost over time | Yes. You receive the approved loan amount |
| Repayment Process | Pay the purchase amount through EMIs | Repay the loan with applicable interest |
| Suitability | When you want to buy gold but pay over time | When you already have gold and need funds |
If you already own eligible gold and need funds, you can consider a gold loan instead. Manappuram Finance offers gold loans against eligible gold. You can check your gold loan eligibility and use this gold loan calculator to estimate the loan amount you may be eligible for before applying.
Things to Check Before Buying Gold on EMI
- Compare the full amount you will pay, including the down payment, EMIs, interest and fees and not just the monthly EMI.
- Check the interest rate, processing fee, convenience fee and any other applicable charges that can increase your cost.
- A longer tenure may lower your EMI but increase the total interest. Also check whether early repayment or cancellation attracts any fee.
- Verify the gold’s purity, weight, price and applicable charges. They should be clearly mentioned on the invoice.
- Even if there is a No-cost EMI claim, confirm that the offer has no interest charges. Also check if there are any processing fees or other charges.
*Terms and conditions applied