August 05, 2001 | Financial Express

Tanishq lets you buy now, pay later

The company has unveiled two new schemes to help customers buy jewellery without feeling the pinch

The chit fund style of saving in small amounts every month and collecting a lump sum at the end of a fixed tenure has been picked up by Tanishq to sell its jewellery. Though such schemes have been in existence for many years with small jewellers this scheme is different as it comes with the guarantee of Tanishq.

Tanishq's Golden Harvest scheme aims at helping women buy gold jewellery without feeling the pinch. The company will be targeting working women and housewives, who can see a savings of Rs.500 per month turn into gold in 15 months.

Under the scheme, a member is required to make a monthly payment of a minimum of Rs.500 or in multiples thereof for 15 months. At the end of the term, the company will add a bonus equal to one monthly installment and the member can buy any piece of jewellery from the Tanishq for the accumulated savings. For example, if you contribute a monthly installment of Rs.500 under the scheme, then in 15 months it will add up to 7,500. The company then adds its contribution equivalent of one monthly installment i.e. Rs.500. So your accumulated savings becomes Rs.8000 with which you can buy jewellery.

Says Mr. Jacob Kurian, Tanishq's chief operating officer, "The Tanishq Golden Harvest Scheme was launched on May 28 and has been introduced in over 30 cities around the country." Explaining the reasons why Tanishq went in for such a scheme, Mr. Kurian says, "Jewellers normally offer schemes in the form of chit funds. Since the risk factors involved with these chit funds are high, customers are averse to investing in these schemes. Tanishq had received requests from many customers to launch a savings scheme."

But the bonus offered in the Golden Harvest scheme (equivalent to one month's installment) is not so attractive when compared with the interest on a bank or post office recurring deposit (9-9.5 per cent annually). In a recurring deposit with a monthly installment of Rs.500, you can earn more than Rs.650 after a period of 15 months, while saving the money with Tanishq's Golden Harvest scheme you get only Rs.500 as bonus.

If Golden Harvest proposition 'save first, then buy' seems unattractive, then Tanishq has a credit purchase scheme as well for you. And you can buy Tanishq jewellery with your Standard Chartered 'Sapnay' credit card programme, such that a cardholder can pay the half the value of his or her Tanishq jewellery purchase in six interest-free installments.

However, you have to pay the other half of the total purchase value in cash. "The bank will debit the monthly installments (six remaining installments) every month to the customer's credit card account." Says Mr. Kurian, adding that under this programme, Indian customers can now buy gold and jewellery on credit. The credit purchase facility is being offered only in the five major cities in the country where Standard Chartered Bank has its offices.