How Fintech app Gullak plans to offer users 16% returns on gold

Fintech app Gullak has come up with Gullak Gold+ to give its users not 11 but 16% returns on gold through leasing of gold to jewellers. Gullak does this by giving users an assured extra 4-5% gold every year on top of the 11% historical returns of gold.
Gullak gives the users extra returns by allowing them to lease their gold to jewellers and get extra 5% interest per annum in the form of 24K gold from these jewellers. This is also the first ever time this practice (gold leasing) will be secured using a 100% bank guarantee from the jeweller

"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 and 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.

Jewellers prefer to get gold metal for their working capital to protect themselves from price fluctuations & be more capital efficient. The jewellers are screened and verified by Augmont, a fully integrated gold player. Augmont vets the security provided by each of these jewellers as collateral for the lease and takes 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 & 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 beat returns from all other Gold instruments & becomes the best choice for anyone wishing to invest in gold for the long term" said Manthan Shah, co-founder, Gullak.