The gold bonds issued under this scheme may be held by a trust, a HUF, a charitable institution, a university, or a person resident in India, who is an individual, in his own capacity, or on behalf of a minor child, or jointly with another person.
Investments such as equity shares can be used to take loans from a financial institution such as a bank. Similarly, can one’s investment in SGB be used to get a loan? Sovereign Gold Bonds (SGBs) can be used as security for loans from banks, financial institutions and non-banking financial companies (NBFCs).
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As per RBI’s FAQs on SGBs, “Yes, these securities are eligible to be used as collateral for loans from banks, financial institutions and non-banking financial companies (NBFCs). Loan to value ratio is the same. as applicable to normal Gold Loans as prescribed by RBI from time to time. Lending against SGB will be subject to the decision of the Bank/Financing Agency and cannot be presumptive of authority.”
Banks offer loans against sovereign gold bonds, which can be used to meet personal expenses or other legitimate needs. sovereign gold bond Pledges are accepted as security both in demat and physical form.
Maximum and minimum SGB loan amount
The minimum and maximum loan amount varies with banks, such as
The minimum loan amount per person is Rs 20,000 and the maximum loan amount per person is Rs 20 lakh. IN, the minimum loan amount is Rs.50,000 and the maximum is Rs. 10 lakhs. The minimum and maximum loan amount in Rs.50000 and Rs.25 lakhs respectively. Similarly, the margin for loans also varies.
Security
Some banks like Union
SGB ​​loans offer only demat form, you need to check with the desired bank about the same. According to the PNB website, only sovereign gold bonds held in demat form with the depository participant of NSDL will be eligible for the loan. Whereas, pledging of Sovereign Gold Bonds in demat form along with physical certificates.
element
State Bank Of India
- Overdraft : 36 months
- Demand Loan : 12 Months
Union Bank of India
- Demand Loan: 12 Months
- Overdraft: 24 months – subject to annual review
processing fee
SBI charges a processing fee of 0.50% of the loan amount plus applicable service tax or Rs 500 plus applicable tax, whichever is higher. Federal Bank charges a processing fee of a minimum of Rs 1000 and taxes exceeding 0.50% of the limit subject to taxes.