SUITABLE FOR

Attractive Rates and Longer Tenure

  • Minimum Loan of ₹1,00,000

  • Loan up to 70% of the value of the Sovereign Gold Bonds.

Things you should know about Loan Against SGB

  • Eligibility Criteria: Loan Against Sovereign Gold Bond

    •  Applicants must be above 18 years of age
    •  Applicants must have a valid e-mail ID and mobile number
    •  Resident Indian individuals, Hindu undivided families, proprietorships, partnership firms and companies can apply
    •  Sovereign Gold bonds must be from the approved list of the bank and in Demat form

  • Interest and Charges: Loan Against Sovereign Gold Bond

    •  Interest is charged only on the amount utilised and for the duration of usage
    •  Interest is calculated daily and debited to your Current Account on the 2nd day of the following month.

    For details of interest and charges, please click here .

Loan Against Sovereign Gold Bond FAQs

Can I get a loan against my Sovereign Gold Bond?

Yes, borrowing against your Sovereign Gold Bond is quite simple. You can apply for a Loan Against Sovereign Gold Bond from the Bank. You can get money depending on the value of the Bond and it serves as security for the loan. This is a fast approach for getting funds without losing your investment.

When will I receive the funds after applying for a Loan Against Sovereign Gold Bond?

Funds for a Loan Against Sovereign Gold Bond are typically disbursed within 1-3 working days after the application is approved. The exact timeframe may vary based on the lender’s policies and documentation process.

What is the Equated Monthly Instalment (EMI) for a ₹5 lakh Loan Against Sovereign Gold Bond?

A loan against Sovereign Gold Bonds operates like an overdraft facility rather than an EMI. Interest is charged only on the amount utilised and for the duration of its usage. For an estimate of interest charges based on your loan amount and usage, use our LAS calculator.

What is the Interest Payment Cycle for a Loan Against Sovereign Gold Bond?

The interest for a Loan Against Sovereign Gold Bond is calculated daily and debited to your account on the 2nd day of the following month. If the 2nd day is a non-working day, the interest is debited on the next working day. You are required to repay the debited amount on the same day to regularise your account.

Can Sovereign Gold Bonds be pledged with a bank?

Yes, it is possible to pledge Sovereign Gold Bonds to obtain a loan from banks like ICICI Bank. You can borrow money based on the bonds' value and they are regarded as collateral.

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