Idle Gold at Home? Earn ₹2,500/Year by Leasing It

Most Indians buy gold and lock it away for years earning nothing. Gold leasing lets you lend your gold to jewellers or banks and earn annual interest — without permanently selling it.

Here's what happened: Gold leasing allows individuals to deposit physical gold with banks or NBFCs, who lend it to jewellers and pay the owner interest.. India's households hold an estimated 25,000 tonnes of idle gold — one of the largest private gold reserves in the world.. Banks like SBI and some NBFCs offer gold monetisation schemes where deposited gold earns 2–2.5% annual interest, paid in gold or cash..

What you should do: Check if your bank offers a Gold Monetisation Scheme (GMS) — SBI, Bank of Baroda, and Canara Bank are among the key participants.. Compare gold leasing returns against Sovereign Gold Bonds (SGBs), which pay 2.5% annual interest plus price appreciation — SGBs often win for new buyers.. Avoid leasing through unregulated jewellers or informal gold finance apps — only use RBI-recognised banks or SEBI-registered entities to protect your gold..

Under the government's Gold Monetisation Scheme, interest earned on deposited gold is fully exempt from income tax — including capital gains and wealth tax.