Gold has always held emotional and financial value in Indian homes. But in most cases, it lies idle in lockers, earning nothing. What if your gold could give you a steady monthly income without selling it off completely? Let’s explore 7 real and practical ways to get monthly income from household gold, methods that truly work.
Why Your Gold Should Work for You
According to RBI estimates, Indians collectively hold more than 25,000 tonnes of gold, worth trillions of rupees. Much of it sits unused, even though several financial instruments and new-age platforms now let you earn a monthly income from it.
Whether you have gold jewellery, coins, or bars, you can safely monetize it while retaining ownership in most cases. Below are the most effective and trusted ways to get monthly income from household gold.
Also Read: 10 Best Apps to Buy Gold Online (7th Will Surprise Every Investor)
1. Gold Monetization Scheme (GMS)
One of the oldest and safest methods is the Government’s Gold Monetization Scheme (GMS). It allows you to deposit your gold with authorized banks and earn interest on it.
How it works:
- Deposit a minimum of 10 grams of gold (jewellery, coins, or bars).
- Banks pay 0.50% to 0.60% annual interest.
- Lock-in period: 1 to 3 years.
- At maturity, you can choose to receive gold or cash.
Monthly income potential: On 100 grams of gold, you can earn approximately ₹400–₹500 per month.
| Feature | Details |
| Minimum deposit | 10 grams |
| Interest rate | 0.50% – 0.60% p.a. |
| Lock-in period | 1–3 years |
| Tax benefit | Interest is exempt from income tax |
Why it works: Your gold stays safe with the bank, earns interest, and even appreciates in value if gold prices rise.
Also Read: Post Office Savings Account 2025: Safer Way to Grow Your Money (Interest Rates, Eligibility & Benefits)
2. Digital Gold Leasing
Technology has unlocked new ways to get monthly income from household gold, and digital gold leasing is one of the most promising.
Through fintech platforms like Gullak Gold or Fiydaa, you can lease your digital gold and earn steady returns.
How it works:
- Convert your physical gold into digital gold.
- Lease it via verified apps or platforms.
- Earn 4–6% annual returns in gold value.
- Withdraw anytime as cash or gold.
Monthly income potential: ₹333–₹500 per month on 100 grams of leased gold (at 4–6% per annum).
Why it works: It’s flexible, transparent, and gives you returns while you still own the asset digitally.
Tip: Always choose government-registered or reputed digital gold partners to avoid risk.
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3. Gold-Backed Peer Lending
Another innovative option is gold-backed peer-to-peer lending. Here, your gold acts as collateral to lend money to verified borrowers through regulated platforms.
How it works:
- You provide funds secured by borrowers’ gold.
- Platforms manage verification and storage of gold.
- You earn monthly interest payments from borrowers.
- Returns: 12–18% annual interest — that’s roughly ₹1,000–₹1,500 monthly per ₹1 lakh invested.
Why it works: You earn high-interest income while being secured by gold collateral — a win-win.
Note: Always use RBI-registered lending platforms and diversify across borrowers to reduce risk.
4. Start a Gold Rental Business
If you own a variety of jewellery, you can turn it into a profitable rental business. Renting gold jewellery for weddings, photoshoots, and movies is now a trending side income option.
What you’ll need:
- Insurance coverage for your jewellery.
- Proper agreements and ID verification of renters.
- A security deposit system.
- Social media or local marketing for visibility.
Income potential: Rs 20,000 – Rs 50,000 per month if you have an appealing jewellery collection and consistent bookings.
Why it works: You retain your gold, and it earns from being used occasionally by others.
Tip: Tie up with event planners, photographers, and stylists to get regular clients.
5. Gold Mutual Fund SWP (Systematic Withdrawal Plan)
If you prefer a regulated investment path, Gold Mutual Funds with SWP can help you generate monthly cash flow.
How it works:
- Sell or convert your physical gold into gold mutual fund units.
- Start a Systematic Withdrawal Plan (SWP).
- You’ll receive a fixed monthly payout directly to your bank.
- After 3 years, long-term capital gains are taxed at 20% with indexation benefits.
Monthly income potential: ₹5,000–₹10,000 monthly from a ₹5 lakh investment.
Why it works: You stay invested in gold while getting a predictable cash flow.
6. Pledge Jewellery for a Gold Loan (Fastest Monthly Cash)
One of the most direct ways to get monthly income from household gold is through a gold loan. Banks and NBFCs like Muthoot Finance, Manappuram, or HDFC Bank offer instant loans against gold jewellery. You can either:
- Repay only interest monthly, and principal later, or
- Opt for regular EMI-based repayment.
Details:
- Interest rates: 8.5%–12% p.a.(banks), up to 18% (NBFCs).
- Loan amount: up to 75% of gold value.
- Processing time: As little as 30 minutes.
Why it works: You retain ownership, get quick liquidity, and control repayment terms.
Tip: Compare interest rates and LTV ratios before pledging your gold. Avoid small unregulated lenders.
7. Sell Gold and Invest in Monthly Income Assets
If you’re comfortable parting with your gold, selling it and reinvesting the money into fixed-income options is another practical way to earn monthly income.
Trusted options include:
- Fixed Deposits (FDs) – Monthly interest payouts.
- Post Office Monthly Income Scheme (POMIS) – Government-backed, safe returns.
- REITs or Dividend Mutual Funds – Regular dividends or rent-linked payouts.
Why it works: These options give stable, predictable cash flow without risk of gold price fluctuation.
Example: Selling gold worth ₹5 lakh and investing in POMIS at 7.4% p.a. can yield ₹3,083 monthly.
Bonus Tip: Combine Two or More Methods
For maximum flexibility, combine different ways to get monthly income from household gold:
- Lease part of your digital gold for passive returns.
- Use another portion for a gold loan in emergencies.
- Invest proceeds in mutual funds or FDs for steady income.
This diversified approach ensures you get both liquidity and growth from the same metal.
Key takeaways:
| Goal | Best Option | Why It Works |
| Low-risk, government-backed returns | Gold Monetization Scheme / SGBs | Safe & steady |
| Higher monthly yield | Gold-backed P2P lending | 12–18% potential |
| Entrepreneurial opportunity | Jewellery rental | Active income |
| Immediate liquidity | Gold Loan | Fastest cash access |
Final Thoughts
Gold is more than just a family heirloom; it’s an untapped financial asset. Whether you choose traditional bank schemes or modern fintech platforms, there are real, safe, and legal ways to get monthly income from household gold without compromising ownership.
Start with a small portion of your holdings, explore one or two methods, and watch your idle gold turn into a steady income engine.
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