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Shortage of Working Capital?
Bridge the gap at 0% Interest
Why pay 10%-24% interest for OD / LC / BG / Loan when you can leverage 100% of your Collateral Value at 0% interest.
Instead of locking up precious funds (and non-fund limits) from your working capital, use our Gold backed Guarantees, Credit Lines and Payments to your vendors and customers.
100% Digital Process
Option 1 : 3 party Escrow contract between Customer - Supplier and milliGOLD. We will be the Escrow Agent. Either party or both parties can give Gold Guarantees to each other as surety for 60 / 90 / 120 days for the delivery terms / payment terms / performance. Or as an unconditional security deposit for 1 year / 2 years / 3 years. No bank involvement is required for this. The entire process for each purchase order is 100% online.
Each escrow agreement will be affixed with TN Govt e-Stamp (equiv of Stamp paper) and the e-Sign will be executed using Aadhaar OTP authentication of the signatories. The agreements are legally enforceable as per Indian IT Act.
Option 2 : Digitally Transferrable Warehouse receipts in gold grams which you can use to take a credit line & make transfers to other mGPay users at 0% interest or give as collateral for Rupee Loans at NBFC Interest.
One time Gold Deposit
milliGOLD will enter in to a stamped safe custody agreement with Gold owner for the one time Gold Deposit. The Physical Gold will be deposited with and stored at a trusted warehouse provider with Insurance.
For select customers, we also allow them to store the Pledged Gold in a smart IOT locker inside their own house, so that they can frequently take out and place back few items for family functions etc.
The depositor can authorise, any no. of people, in addition to himself, who can sign escrow contracts and execute transfer instructions, on his behalf with operating limits for each. The equivalent gold grams will be set as a mGG limit / mGPay balance in their respective Guarantee Account / Wallet account.
Example if you deposit 1000 grams of 24Kt Gold or 22Kt Gold, you will get a mGG / mGPay balance of 995 grams or 916 grams respectively. Gold balance in milliGOLD Savings account can also be transferred to the mGG / mGPay account in lieu of physical Gold.
mGGs and mGPay usage
You can break up the limit given in your Guarantee Account / Wallet Account and issue Gold Guarantees to your suppliers and customers, or make transfers to other mGPay users at 0% Interest. Example a 500 grams limit can be used as 50 grams X 10 parties. Gold grams issued as Guarantees and Security Deposits will be added back to your account on expiry of the Escrow contract. Wallet Balances will be debited and credited after each send or receive transaction. All these happen digitally on the milliGOLD Platform.
A Customer can give Gold grams as surety to a supplier to get better payment terms or credit terms, thus saving on Working Capital Interest. Supplier reduces the risk of delayed payments and bad debts.
A Supplier can give Gold grams as surety to a Customer to reassure the Customer about timely delivery, performance and quality, thus getting new business from new customer. Customer gets better price.
A Trader / Buyer can give Gold grams as surety to another Trader / Seller to reduce the price difference between Cash Price and Credit Price, thus reducing effective price. The seller reduces the risk of bad debts.
One Party can accept Gold Guarantee from the other party, in place of LC or BG because the other party has exhausted their LC limit / BG limit with their bank and has no cash to put up a 120% margin for LC / BG.
Any party can give Gold grams as a security deposit to another party without any underlying conditions to support an ongoing business relationship between them.
You can use your mGPay wallet balance as a credit line to make payments to other mGPay users at 0% Interest. You will pay NBFC interest only for the Rupees withdrawn / redeemed out of the mGPay wallet.
Claim and Settlement
If there is no claim within the expiry date of the mGG contract (Escrow Period), the Gold grams given as surety will be automatically released and added back to the surety giver's Guarantee Account.
In the event of a claim by the surety receiver, after sufficient legal notice to the surety giver, millIGOLD will transfer part of the Gold to the surety receiver's account. If the surety was for 30 grams, only 30 grams will be transferred. The surety receiver can use this balance to issue Gold Guarantees to their own customers and suppliers. Or the surety receiver can request the Escrow Agent to sell it at MCX Exchange market price and settle the rupee amount to their bank account.
Withdraw Gold Deposit
Restoring Claimed Gold
If there are running surety contracts - for example 200 grams used out of 500 grams deposited, the balance unused 300 grams can be taken back any time. The entire deposit can be taken back after the expiry of all the surety contracts.
For select customers (for additional fees) we allow them to store the Gold in a Smart IOT Locker in their own house, so that they can frequently take out and place back few items for family functions etc. Adjustments will be made to their limits / wallet balances accordingly.
The surety giver can pay milliGOLD to purchase Gold at MCX Exchange market price and add it back to the guarantee / wallet account, or take a loan from one of our NBFC partners to settle to the surety receiver and get the gold grams released back. Till then the surety giver may agree to pay to milliGOLD a mutually agreed short term fees, to prevent melting of the Gold Deposited.
Fees & Charges
0% Interest, 0 EMI
There is no interest or EMI that is payable on 3 party Escrow contracts and Digitally Transferable Warehouse Receipts.
Rs 6 per gram for each order (0.1% of market value rounded off to nearest rupee per gram)
Stamp duty & eSign
Min Rs 100 to Max Rs 200 per order depending on Value. All agreements have to be digitally signed with Aadhaar OTP by the business owner / partner
Rs 36 per gram per year + Insurance Charges as a % of Market value every year.
For customers where the Gold is stored in a IOT Locker in their own house, in addition to locker rental and insurance, visit charges will apply every time an item is taken out or placed back.
Physical Gold purity assessment and handling charges of 1% will be charged. Not applicable if milliGOLD Saving balance is transferred to the Guarantee account.
If the Gold is melted and sold at market rate quoted on MCX exchange (Gold Guinea), then 1% commission will be deducted on the rupee settlement amount.
Melting loss, defined as the difference between assessed karat and grams and actual karat & grams - will be charged to the depositor.
Melting cost, defined as the expenses incurred to melt the Gold and refine it to the required specifications for selling at MCX exchange, will be charged to the depositor
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