FAQs on Loan Against Sovereign Gold Bonds

1. I am having Sovereign Gold Bond. Can I avail loan against it?

Yes, our bank offers loan against Sovereign Gold Bonds. These bonds are eligible to be used as collateral for loans from banks.

2. Who are eligible to avail Sovereign Gold Bond Loan?

A Person above 21 years of age, resident of india, being an individual in his individual capacity or on behalf of minor child, or jointly with another individual. Non individuals are Trust, Charitable Institution & University.

HUF & third party are not eligible.

3. How much loan will I get against Sovereign Gold Bond?

Min - Rs.25,000/-, Max - Rs. 25.00 lakhs for individuals

Rs.500.00 lakhs for Non - individuals

4. What will be the repayment period for availing loan on Sovereign Gold Bond?

Demand Loan - 12 months as bullet payment and Term Loan (EMI based) - till the date of maturity or residual period of gold bond, whichever is earlier without holiday period.

5. What will be the margin requirement for loan against Sovereign Gold Bond?

It is 35 %

6. What will be the security for availing Sovereign Gold Bond loan?

Pledge of SGBs held either as Bond Ledger Account (BLA) in RBI's E-Kuber system or as Dematerialized Bond with the Depository.

7. Can I redeem my Sovereign Gold Bond while they are pledged as collateral for a loan?

No, you can't redeem or sell the SGB pledged as collateral until you repay the loan. However, you can continue to receive interest payments and other benefits associated with the SGBs during the tenure of the loan.

8. What will happen in case of death of Sovereign Gold Bond holder?

In case of death of the SGB Holder, the SGB will be handed over to the nominee only after verification of nomination details in E-kuber portal of RBI.

9. Sovereign Gold Bond is in joint name. Will loan also be in joint names?

Wherever, SGBs are in joint names, the loan account should also be in joint names.

10. Whether loan can be availed against the Bond taken from another Bank

Yes.