Hey everyone,
I’ve been using the Malabar Golden Glow Gold Purchase Plan (GPP) for years and thought I’d share a detailed breakdown. I've always felt like these schemes are confusing during redemption so this guide should help clear your doubts and get you all the answers needed.
Link : https://www.malabargoldanddiamonds.com/gold-purchase-plan-ap-t
Note : Scheme can be opened only offline at the store
Let's take an example - gold rates here are just assumed for simplicity.
Maturity Day Purchase Setup :
Assume you’re buying 15g jewellery at different making charge % levels
Case 2:
Case 3: 15grams jewellery @ 18% MC (capped 14%)
Disclaimer : Malabar isn’t necessarily the “best” scheme — it just suits my setup. My family has been doing gold schemes with them for over a decade. Other jewellers like GRT, Bhima, etc. offer similar plans — always research carefully and compare before starting.
I’ve been using the Malabar Golden Glow Gold Purchase Plan (GPP) for years and thought I’d share a detailed breakdown. I've always felt like these schemes are confusing during redemption so this guide should help clear your doubts and get you all the answers needed.
Link : https://www.malabargoldanddiamonds.com/gold-purchase-plan-ap-t
Note : Scheme can be opened only offline at the store
Scheme Basics :
- Pay a fixed amount (say ₹10,000/month) for 11 months.
- Redeem in month 12 to buy jewellery.
- You get a making charge waiver (up to 14%) on redemption.
- If you don’t buy jewellery in month 12, your amount is refunded without interest.
- The scheme value is based on a weighted average gold rate of each installment month, shown as GPP Advance in your final bill.
Let's take an example - gold rates here are just assumed for simplicity.
- ₹10,000 × 11 months → ₹1.1L (This will be shown as GPP Advance in your bill)
- Avg gold rate = ₹9,500/g → 11.57g of gold collected over 11 months (this is the weighted average of gold rates on your instalment payment days)
- So if u paid 10k in march when gold rate is 8000, 10k in april with gold rate at 8500, 10k in may with gold rate as 10000, 10k in june with gold rate at 10500, etc, your final gold saved will have an average per gram gold rate calculated in this manner .
- Easy way to find this is to see how much gold you have saved in the scheme ( shown in the app itself), so in this instance its 11.57 g, divide your total investment by the gold collected to get your average gold rate
- 110000/11.57 = 9500/g
- Purchase day rate = ₹12,000/g (the rate on the day you buy jewellery at maturity on 12th month)
- Jewellery bought = 15 g
- GPP discount = 12,000 × 11.57 × MC% (capped at 14%)
- This will always be calculated at day's rate , not at your average rate.
- Here’s how the actual Malabar bill looks (personal details hidden) — notice the GPP Advance and GPP Discount sections we just discussed.
Maturity Day Purchase Setup :
Assume you’re buying 15g jewellery at different making charge % levels
- Gold value split :
- 11.57 g × ₹9,500 = ₹1,09,915 (GPP grams)
- For the jewellery you purchase, all the weight upto what you have collected in the scheme will be calculated at your average gold rate
- 3.43 g × ₹12,000 = ₹41,160 (remaining grams)
- For the jewellery you purchase, all the weight in excess of what you have collected in the scheme will be calculated at day's gold rate of when you purchase the jewellery in the 12th month
- 11.57 g × ₹9,500 = ₹1,09,915 (GPP grams)
- Total value of Base gold = ₹1,51,075
- Making charge = 15 g × ₹12,000 × jewellery MC %
- Total taxable = Base gold + Making
- GST (3%)= applied on total taxable
- Then subtract:
- GPP Advance(₹1.1L)
- GPP Discount (based on jewellery MC%)
- Then subtract:
- Final payable = after deducting both above
Example Calculations :
Case 1:- 15grams jewellery @ 14% MC
- Base gold = ₹1,51,075
- Making = 15 × 12,000 × 14% = 25,200
- Total taxable = 1,51,075 + 25,200 = 1,76,275
- GST 3% = 5,288 → Total = 1,81,563
- GPP discount = 12,000 × 11.57 × 14% = 19,426
- Final payable = 1,81,563 − 1,10,000 (GPP Advance) − 19,426 (GPP Discount) = ₹52,137
- Total outflow = 1,10,000 + 52,137 = 1,62,137
- Direct purchase would’ve cost ≈ 1,88,400 → you end up saving ≈ 24,263
Case 2:
- 15grams jewellery @ 12% MC
- Base gold = ₹1,51,075
- Making = 15 × 12,000 × 12% = 21,600
- Total taxable = 1,51,075 + 21,600 = 1,72,675
- GST 3% = 5,180 → Total = 1,77,855
- GPP discount = 12,000 × 11.57 × 12% = 16,661
- Final payable = 1,77,855 − 1,10,000 (GPP Advance) − 16,661 (GPP Discount) = ₹51,194
- Total outflow = 1,10,000 + 51,194 = 1,61,194
- Direct purchase would’ve cost ≈ 1,85,400 → you end up saving ≈ 24,206
Case 3: 15grams jewellery @ 18% MC (capped 14%)
- Base gold = ₹1,51,075
- Making = 15 × 12,000 × 18% = 32,400
- Total taxable = 1,51,075 + 32,400 = 1,83,475
- GST 3% = 5,504 → Total = 1,88,979
- GPP discount (capped 14%) = 12,000 × 11.57 × 14% = 19,426
- Final payable = 1,88,979 − 1,10,000 (GPP Advance) − 19,426 (GPP Discount) = ₹59,553
- Total outflow = 1,10,000 + 59,553 = 1,69,553
- Direct purchase would’ve cost ≈ 1,92,600 → you end up saving ≈ 23,047
Early Redemption Options
- Month 6 → 7% MC waiver
- Month 9 → 10% MC waiver
- Month 11 → 14% MC waiver (max)
- You can even prepay all 11 installments in one month and wait till month 12 if you expect gold to rise — most jewellers don’t allow this flexibility.
- You can pre-select designs or even have custom designs made, but ensure they will ready for billing in 12th month so they can be covered by the scheme
CC Setup :
- I pay the first installment at the store using Amex Plat Travel (for milestone spends)
- Load Amazon Pay balance using AGVs bought via multpliers
- I personally use iShop with ICICI Times Black (8–9% reward rate).
- Some folks dont have this Apay option in the malabar app, in that scenario cards like Amex PT , Times Black etc work for direct online usage to get RP.
Disclaimer : Malabar isn’t necessarily the “best” scheme — it just suits my setup. My family has been doing gold schemes with them for over a decade. Other jewellers like GRT, Bhima, etc. offer similar plans — always research carefully and compare before starting.
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