Loan up to 70% of the value of the Sovereign Gold Bonds.
How to get maximum benefits from Loan Against SGB?
Overdraft Facility
Avail funds conveniently through an Overdraft Facility, ensuring easy access to money as and when required.
Interest Rate
Pay interest only on the amount utilised and for the exact duration of usage, helping you save on unnecessary charges.
Seamless Digital Process for select customers
Apply, manage and access funds digitally for a hassle-free experience.
Quick Disbursal
Funds are disbursed promptly, ensuring minimal delays in fulfilling your financial needs.
Loan Value
Get a Loan against the value of your Sovereign Gold Bonds, enabling flexible liquidity without selling your bonds.
Approved Security
The Loan is granted against Sovereign Gold Bonds, a secure asset.
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 .
Things You'll Need to Apply for Loan Against SGB
Documents Required: Loan Against Sovereign Gold Bond
The following documents are required for a Loan Against Sovereign Gold Bond:
Identity Proof
Address Proof
Signature Proof
Demat Details (in addition to the officially valid document(s) applicable as per entity).
How to Apply for Loan Against Sovereign Gold Bond?
Login to Internet Banking
Click on ‘Investment and Insurance,’ then go to ‘Demat’ and select ‘Loan Against SGB’. Enter additional information.
Select the Sovereign Gold Bonds for Pledging and Calculate your final loan amount. Provide Foreign Account Tax Compliance Act (FATCA) details and accept Terms and Conditions
Redirect to (National Securities Depository Limited) NSDL for pledging confirmation through OTP
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 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 in 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.
