✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation Apply Now

The Gold Deposit Scheme is an ideal investment option for you as an investor who intends to deposit idle gold in a financial institution or with jewellers. The scheme includes various options such as the Sovereign Gold Bond (SGB), the Indian Gold Coin Scheme (IGC), and the Gold Monetisation Scheme (GMS). 

This allows you to invest gold for a period of 8 years. Basically, it is a fixed deposit with gold, wherein depositing your gold will let you earn interest on the deposit and enjoy tax benefits.

Also known as the gold monetisation scheme, it has a minimum investment of just 2 units or 2 grams of gold. As such, anyone can participate in the scheme and reap the benefits of investing in gold. Read on to know more

Purpose of the Gold Deposit Scheme

The purpose of the Gold Deposit Scheme is to mobilise the idle gold lying with people within the country. It also helps control the trend of importing gold. This will help the government utilise gold and unveil the scope to earn good interest rates on gold deposits. 

Eligibility Criteria for Taking Gold Deposit Scheme

As a residing citizen of India, you can opt for the Gold Deposit Scheme. Below is the list of gold loan eligibility criteria:

  • Individuals as single or jointly 

  • Hindu Undivided Family 

  • Companies 

  • Trusts

Features and Benefits of Taking Gold Deposit Scheme

The features and benefits of the Gold Deposit Scheme include

Immobilise Unused Gold

The Gold Deposit Scheme was launched for the proper flow of idle gold. Doing so increased the proper recycling of domestically-owned gold, thereby reducing the dependency among jewellers on imported gold products.

Tax Exemption

The earnings generated by the Gold Monetisation Scheme have been exempted from income tax, wealth tax, and capital gains tax. Also, if there is an increase in the value of the gold deposit, capital gains tax will neither be charged on it nor your earned interest.

Flexible Redemption

Being a depositor, you can redeem principal or interest on gold deposits of cash or gold while opting for this scheme. But remember that you have to make your redemption choice during the deposit.

Premature Payment

Premature payment is allowed only after one year of the lock-in period. After that, however, a penalty will be applied at a predetermined gold monetisation scheme interest rate.

Short-Term Gold Deposit Scheme

Also known as Short Term Bank Deposit (STBD), it is a popular scheme that comes under the gold monetisation scheme. The term ranges from 1 to 3 years. The annual Gold Loan interest rate varies from 0.35% - 1%, which depends on the weight of the gold. In the short term, the gold remains in the custody of the financial institution.

Medium and Long-Term Gold Deposit Scheme

Similarly, known as Medium- and Long-Term Government Deposit (MLTGD), this is another plan under the gold monetisation scheme. The term of this scheme ranges from 5-7 years for the medium term and 12-15 years for the long term. The annual gold deposit interest rate for these terms is 2.25% and 2.50% respectively. 

Financial institutions accept the deposit on the Central Government’s behalf. 

Gold Deposit Schemes Offered by Financial Institutions

In the 2015 budget, the Gold Deposit Schemes were introduced. The main objective of this scheme was to motivate the citizens of India to deposit their idle gold items in financial institutions and receive good returns along with tax benefits on the maturity of the scheme. 

The 3 popular gold loan schemes offered by financial institutions include:

  • Gold Monetisation Scheme 

  • Sovereign Gold Bond Scheme 

  • Gold Coin and Bullion Scheme

1. Gold Monetisation Scheme

This scheme was launched in September 2015 by the Indian Government as an alternative to the previously existing Gold Deposit Scheme. The gold monetisation scheme turned into revamped Gold Deposit Scheme, which encompasses the ‘Gold Deposit Scheme’ and the ‘Gold Metal Loan’ scheme.

The main objective of introducing this scheme was to mobilise gold kept in households or institutions and use it for production. In this way, it would lessen the country's dependence on imported gold.

In short-term, medium-term, and long-term, this scheme ranges between 1 to 3 years, 5 to 7 years, and 12 to 15 years, respectively. According to this scheme, financial institutions choose the lock-in period and the penalty amount. 

2. Sovereign Gold Bond Scheme

Sovereign Gold Bond (SGB) is a government security denominated in gold grams. In general, it is an alternative to physical gold. On behalf of the Indian Government, the Reserve Bank of India administers the sovereign gold bond scheme.

The Reserve Bank of India offers gold bonds on behalf of the Indian Government. In general, these bonds are calculated in gold grams.

Under this scheme, the maximum time limit for investing in bonds is 8 years. In addition, this scheme provides you with the scope to close it from the fifth year.

3. Gold Coin and Bullion Scheme 

The Gold Coin and Bullion Scheme is another new programme launched by the Indian Government on 5th November 2015. The least deposit for this scheme is raw gold (bars, coins, jewellery excluding metals and stones) equal to 30g of gold. However, there is no maximum deposit limit in this scheme.

Read More

Table Showing Interest Rates and Tenure Offered by Various Financial Institutions

Following is the tabular representation of various financial institutions, their interest rates, and tenures:  

Name of Bank

Interest Rate


SBI Gold Scheme 

Short-term gold deposit


1 to 3 years

Medium-term gold deposit


5 to 7 years

Long-term gold deposit


12 to 15 years

HDFC Gold Scheme 


8 years 

ICICI Gold Scheme 

Short-term gold deposit


1 to 3 years

Medium-term gold deposit


5 to 7 years

Long-term gold deposit


12 to 15 years

Disclaimer: Above-mentioned rates are subject to change at the discretion of the issuer. 

Features and Benefits Offered by Gold Schemes of Financial Institutions

Following are the key features and benefits of Gold Loan Schemes offered by various financial institutions: 

  • The tenure ranges across the short term of 1- 3 years, medium-term of 5 - 7 years, and long term of 12 to 15 years.

  • Interest received from gold schemes has tax exemption. 

  • Redeeming the deposited gold before its maturity is possible, but that attracts a penalty.

  • Financial institutions have the authority to decide how to use the gold regardless if it is for RBI Gold reserves, auctioning etc. 

  • The worth of gold deposited decides the interest rate payable in cash.

  • You can deposit your gold in all common forms, such as jewellery, coins and bars. 

  • While financial institutions determine the interest rate on gold deposits for short-term schemes, the Government of India has set an interest rate on medium and long-term gold deposits.

Read More

Gold Deposit Schemes Offered by Jewellers

Following are the schemes offered by jewellers: 

1. GRT Gold Scheme

It offers several advantages to its gold schemes. The details of their GRT Golden Eleven Flexi Plan are stated below:

The features and benefits of the GRT Gold Scheme are as follows:

  • The scheme requires you to pay a predetermined monthly instalment for 11 months. Paying a monthly instalment of a minimum of ₹500 is essential for investing in the gold scheme.

  • This scheme offers no cash refund, so the return on investment can only be executed in the form of gold only.

  • You can purchase jewellery for the expected value just after a month from the day the previous instalment is paid. Exclusions of jewellery products that you can buy include ruby, emerald, vintage jewellery, diamonds, platinum, and silver.

2. GRT Golden Seed Savings Scheme

The features and benefits of the GRT Golden Seed Savings Scheme are as follows:

  • Instalments should be paid per month mandatorily for a total of 11 months.

  • If the wastage amount is more than 18% of accumulated gold, you will need to bear that amount.

  • As per this scheme, instalment amounts remain fixed, and the maturity date cannot be changed.  

  • You are not eligible to get the ‘Discount on Purchase’ option if you discontinue before 7 months after enrolment. 

  • The prevailing gold rate on the realisation date will be considered if any cheque is dishonoured. Payment defaults will linger the maturity date by that many months for which the default has happened.  

  • Instalment payments need to be cleared before the 10th day of each month for 15 months.

  • As soon as the monthly instalment amount is cleared, gold will be credited to your account based on the prevailing rate.

3. Gold Scheme Offered by Kalyan Jewellers 

Mentioned below are some of the important features and benefits of the ‘DHAN SAMRIDDHI Scheme’ provided by Kalyan jewellers:

  • The monthly instalment amount starts at ₹5,000. If there is a default on monthly instalments, you will have to pay 0.25% extra as a penalty on the making charges. 

  • A long-term investment benefit related to your child’s higher education and marriage is also available. 

  • You, as the holder of the gold loan scheme, must be present during the closure of the scheme.

  • The incapability to clear the balance amount by the 12th month may cause the cancellation of your purchase. The earlier payments will be refunded via a demand draft and then sent to the address that was registered during the enrolment. 

  • The maximum tenure of this is 365 days, and it is mandatory to close the scheme just after buying the chosen ornament.

4. Tanishq Golden Harvest Scheme

Following are the details of the Tanishq Golden Harvest Scheme:

  • According to this scheme, you have to make a monthly payment for 6 months or 10 months as per your selected term, which can be redeemed after the maturity of this scheme.

  • You are entitled to a 75% discount while purchasing gold jewellery via this scheme.

  • Failing to clear payments for the above 2 months can cause the cancellation of this gold scheme, and your principal amount will get refunded.

  • The scheme even provides a special discount on deposited amounts.

  • This gold scheme account will close after 235 days from its issuance if you select the 6-month term. On the other hand, if you have chosen the 10-month term, the scheme will continue for 385 days. 

  • This scheme gives you flexibility for depositing an amount per your financial affordability. The minimum amount payable begins from ₹2,000.

Read More

Popular Gold Savings Scheme

The 3 popular gold savings schemes are:  

  • Jos Alukkas’ Easy Buy Gold Purchase Plan

  • Tanishq Golden Harvest Scheme

  • Gold Scheme by Kalyan Jewellers 

The Gold Deposit Scheme works similarly to opening a fixed deposit with gold. Opting for the gold scheme can benefit you as an individual and establishments as it helps in earning interest, availing tax exemption and getting the security of the gold. Before opting for this scheme, choose one that matches your financial goal.

Process of Enrolling for Gold Deposit Scheme

Applying for the scheme is a hassle-free and straightforward process that can be done online and offline. Here are the brief steps for both online and offline application processes for the Gold Deposit Scheme:

  • Step 1: Select an authorised bank for the scheme

  • Step 2: Visit a branch, collect and fill out the application form with the necessary details

  • Step 3: Submit the application form and required documents to the bank

  • Step 4: Visit the nearest Collection and Purity Testing Centre (CPTC) within 7 days of filling out the form, along with the customer copy of the application form

  • Step 5: Submit your gold at the CPTC with your consent for the melting process

  • Step 6: The CPTC will provide you with a deposit receipt containing your gold's quantity and purity details

  • Step 7: Wait for the deposit certificate sent to you via courier and on your registered e-mail ID

The deposit certificate will contain the details of your gold quantity, purity, and other relevant scheme details.

Read More


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Read More

FAQs on Gold Deposit Scheme

The Gold Deposit Scheme is a program initiated by the Indian government to encourage people like you to deposit idle gold in banks in exchange for interest. The bank then uses the deposited gold for lending purposes. 


At the end of the deposit period, the depositor can receive cash or gold in return.


The minimum investment in a gold monetisation scheme is generally around 10 grams of gold. However, this can vary depending on the scheme and the financial institution offering it. 


Therefore, it is important to check with the specific bank or institution for their minimum investment requirements.


You can visit your nearest SBI or jewellery company for details and apply for a Gold Deposit Scheme.


A depositor will get back physical gold as bullion after maturity if he/she opts for redemption in the form of gold.


The principal part will be denominated only in gold. However, the interest will be received in Indian Rupees while redeeming it.


Yes, you may be able to withdraw your deposit prematurely from a gold monetisation scheme, but this will depend on the terms and conditions of the specific scheme and the financial institution offering it. 


In addition, there may be penalties or charges for early withdrawal, so it is important to check with the bank or institution for their policies on premature withdrawal.


For gold monetisation schemes, the minimum lock-in period before a withdrawal can vary depending on the type of deposit. In case of premature withdrawal, a penalty may apply, which will be calculated based on the actual market value of the gold deposit on the day of withdrawal and the interest payable for the period the deposit was held.


Once you have deposited your gold with the bank and 30 days have passed, the bank will issue you a system-generated Gold Deposit Certificate to prove your ownership of the gold.


The interest rate on gold deposits varies depending on the policies of the company or bank that you have deposited your gold with. Therefore, you should check with a specific company or bank to determine their interest rate on gold deposits. 


Knowing the interest rate given by a lender is also essential when you plan to avail a gold loan during financial emergencies. This is because the gold loan interest rate varies from one lender to another. Furthermore, you may use a gold loan EMI calculator to help you estimate the monthly repayment amount well in advance.


The Reserve Bank of India (RBI) has issued guidelines for gold schemes, which include rules for the purity of the gold, the maturity period, and the interest rates that can be offered. 


You, as an individual or institution, can invest in gold bonds with a basic unit of 1 gram of gold, denominated in multiples of gold grams. The minimum investment is 2 units or 2 grams of gold, while the maximum investment allowed per fiscal year is 500 grams or units per person, subject to a cap.


Loan Offer
Download App
Credit Score