Idle Gold at Home? Earn 2–3% Returns by Leasing It

Indian families own massive amounts of gold but rarely earn anything from it. Gold leasing lets you lend your gold to jewellers or institutions and earn interest — without permanently selling it. Here is how it works and whether it suits you.

Here's what happened: Indian households collectively hold an estimated 25,000 tonnes of gold, most of it sitting idle in lockers and cupboards earning zero returns.. Gold leasing allows individuals to lend their physical gold to banks, jewellers, or institutions for a fixed period and earn interest of roughly 2–3% per annum in return.. India's Gold Monetisation Scheme (GMS), launched by the government, lets you deposit gold at designated banks for a minimum of 1 year and earn tax-free interest, with your gold returned at maturity..

What you should do: Visit a designated bank (SBI, Bank of Baroda, or others) to check their Gold Monetisation Scheme rates and minimum deposit requirements before committing.. Calculate the purity and weight of your idle gold jewellery — most schemes accept 995 purity bars or hallmarked jewellery above 30 grams minimum.. Compare GMS interest (tax-free) against an FD rate after 30% tax slab deduction — for high earners, gold leasing often wins on net returns..

Interest earned under the Gold Monetisation Scheme is fully exempt from income tax, capital gains tax, and wealth tax — making its effective yield higher than most FDs for anyone in the 30% bracket.