Many jewellers offer monthly savings schemes: customers pay a fixed amount every month and, at maturity, redeem the accumulated value as jewellery, sometimes with a benefit added by the jeweller. These schemes encourage repeat visits and planned purchases for weddings and festivals.
They also create obligations. Every rupee received must be tracked, customers need clear statements, and the scheme must be structured within applicable regulations.
A Note on Regulation
Schemes in which a business collects money from the public in advance can fall under deposit-related regulations, and the rules depend on how the business is structured and how the scheme is designed. Before launching or changing a scheme, consult your CA or legal adviser. This article covers operations and record-keeping, not legal advice.
Key Records for Every Scheme
- Scheme name, duration, instalment amount and terms.
- Customer enrolment details and KYC as required.
- Instalment schedule and payments received.
- Payment method and receipt numbers.
- Missed or late instalments.
- Maturity date and redemption value.
- Redemption details: items purchased and invoice.
Enrolment
Make terms clear at the start: duration, instalments, what happens if payments are missed, redemption rules, and any benefit offered. Give the customer written terms and a passbook or digital statement.
Collecting Instalments
- Accept payments at the counter, via UPI or through payment links.
- Issue a receipt for every instalment.
- Send reminders before due dates by SMS or WhatsApp.
- Track overdue accounts and follow up politely.
Maturity and Redemption
- Notify customers as maturity approaches.
- Calculate the redemption value according to the scheme terms.
- Adjust the value against the jewellery purchase on the invoice.
- Close the scheme account with a final statement.
Handling Exceptions
- Early closure requests.
- Customer wants to redeem at another branch.
- Transfer to a family member.
- Missed instalments and scheme extensions.
Define policies for each in advance.
"A savings scheme is a promise. Clear records are how you keep it."
Reports Jewellers Need
- Active schemes and total collections.
- Upcoming maturities by month, to plan stock.
- Overdue instalments.
- Redemptions and scheme-linked sales.
How Software Helps
Scheme management software records enrolments and instalments, sends reminders, calculates maturity, adjusts redemption on the bill and produces reports, reducing manual errors and customer disputes.
Common Questions
Can customers pay instalments online? Yes. UPI payment links, QR codes and online payment pages make it easy for customers to pay from home. Each payment should automatically update the scheme account and send a receipt.
What happens if a customer misses instalments? Define the policy upfront, for example extending maturity or adjusting the benefit, and explain it at enrolment. Software can track missed instalments and send reminders before they become a problem.
Can schemes be redeemed at any branch? If your branches share a central system, redemption at any branch is possible and convenient for customers. Make sure scheme records are updated in real time to avoid double redemption.
How do we explain scheme terms clearly? Provide a written summary at enrolment and a statement after every payment showing instalments paid, pending and the expected maturity value. Clear communication prevents disputes at redemption time.
ITELLIC Jewellery Management System
ITELLIC's jewellery software manages monthly gold savings schemes, instalments, maturity and redemption alongside billing and stock. Book a free demo to see scheme management in action.
Jewellery Management System
Built for the way jewellers actually work.
