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Gold leasing: Chance to earn up to 16% returns with this startup

Fintech app Gullak is offering users an opportunity to earn up to 16% returns by leasing their gold to “trusted” jewellers. Gullak was earlier giving its users an option to automate their savings into Gold and earn up to 11% returns annually. Now the Fintech app has launched Gullak Gold+ to give its users up to 16% returns on Gold by assuring extra 4-5% Gold every year on top of up to 11% returns offered earlier.

In a statement on Thursday, the startup said that Gullak has become the first ever B2C app to give users an extra 4-5% in Gold grams every year on all Gold investments made on the app. 

How it works

Gullak gives users extra returns by allowing them to lease their Gold to some “trusted” jewellers and get an extra 5% interest per annum in the form of 24K Gold from them. The Gold leasing will be secured using a 100% bank guarantee from the jeweller, the statement said. 

“Gold leasing is a practice that has been prevalent in the offline market but is limited to a very small population(Top 0.01% of India) & the minimum quantity to lease has been upwards of 1KG of Gold. Gullak becomes the first to digitise & democratise the same. We want to give all our users secure ways to create more wealth & this is yet another step towards that.” said Dilip Jain, co-founder, Gullak.

Also Read: Gold vs Gold ETF: Which has given a better return in 5 years?

Jewellers prefer to get Gold metal for their working capital to protect themselves from price fluctuations and be more capital efficient. Gullak said that the jewellers are screened and verified by Augmont. 

Augmont vets the security provided by each of these jewellers as collateral for the lease and takes a bank guarantee equivalent to 100% of the INR value. The jeweller coordination is done by Gullak/Augmont and the extra Gold is deposited back into users’ Gullak at the end of every month. 

“The process to avail Gold+ is simple and can be done by anyone in 3 quick steps and in less than 5 minutes. There are no lock-ins, i.e, the user can withdraw Gold at any point – Users can withdraw as cash or get the Gold delivered at home. The minimum quantity to lease is just 0.5 grams. Gullak Gold+ returns beats returns from all other Gold instruments & becomes the best choice for anyone wishing to invest in Gold for long term” said Manthan Shah, co-founder, Gullak.

Also Read: Wealth Creation: A multi-asset strategy is the best bet

“The first requirement listed by the jewellers is already booked by our existing customers. We are seeing great inbound response for the product & are happy to have provided our customers with an innovative solution to create more wealth, ” added Manthan Shah.

(Disclaimer: The above information is based on a press release by Gullak. It should not be taken as investment advice. Users should consult their financial advisors before getting into Gold leasing as it may involve certain risks)

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