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With the help of an SBI Loan against Sovereign Gold Bonds, an applicant or co-applicant can take a loan amount of up to 20 lakhs Rs. from the bank. The effective interest rate for the loan against SGBs is 9.25% and on the applied tenure of 12 to 36 months.
Okay, let us talk about all details of this loan scheme.
Main Highlights of SBI Loan against Sovereign Gold Bonds
- The minimum and maximum loan sanctioned amount in this scheme are from 20,000 Rs. to 20 lakhs Rs.
- This loan is available under both overdraft and demand loan facilities.
- The loan tenure for an overdraft loan facility is 36 months, and for a demand loan facility, it is 12 months.
- The effective interest rate to this loan against the SGBs scheme is 9.25%
- A margin rate of 35% of the market value of Sovereign Gold Bonds (SGBs) will is applied.
- Low processing fee (0.50% of the sanctioned loan amount) + applicable service tax additional, etc.
- The applicant must have a Demat account with SSL.
- Under the Sovereign Gold Bond scheme, the age should be more than 21 years for the single applicant or investors/co-applicant.
- The repayment of the principal amount is to be on or before the term will end.
- The Interest rate will be applied monthly.
- For the repayment in a demand loan facility, the interest and principal amount is to be on or before the term will end.
What is SBI Loan against Sovereign Gold Bonds?
This is a loan against securities in which an applicant or co-applicant pledged her Sovereign Gold Bonds to the bank as bank security. The bank on the basis of market values of SGBs (Sovereign Gold Bonds) with an applicable margin provides a loan to the eligible borrower. This loan is can be used for cover/relief from financial debts, and other personal needs.
How much Amount of Loan is Provided in SBI Loan against Sovereign Gold Bonds Scheme?
A Minimum of – 20,000 Rs.
A Maximum of – 20 lakhs Rs.
Who is eligible for the SBI Loan against Sovereign Gold Bonds?
- For sanctioning this loan bank requires your Sovereign Gold Bonds as a security in favor of the bank.
- Any applicant/co-applicant or joint investors (Such as charitable trusts/institutes, a joint family, university, etc) having an account in SBI under the Sovereign Gold Bonds Scheme.
- The age should be more than 21 Years.
- Should be a citizen of India, (Data for the availability of this loan for non-Indian citizens is not available for now, but any individual can contact the State bank of India for further inquiry).
- The customers having a Demat account in SBI with SBICAP Securities Ltd (SSL).
- If the sovereign Gold Bonds (SGBs) are in physical form then, the bonds must be issued via the State bank of India (SBI).
SBI Loan against Sovereign Gold Bonds Document Requirements?
Required first, an application form to apply for a loan against Sovereign Gold Bonds in SBI. The required form can be downloaded from the Official website of SBI. Form downloading details are given below.
How to get the application form for a loan against the Sovereign Gold Bonds in SBI?
- Open Offical SBI website.
- In the loans section, click on Personal loans.
- Choose loan against securities.
- Here click on Loan against Sovereign Gold Bonds.
- Here you will found details about this loan scheme, such as features, eligibility, documentation.
- Choose documentation.
- Here you can click on the application form PL-37, and your required application form will start download automatically.
- After then, get a hard copy of this downloaded form, and fill in all the required details, and contact the nearest SBI branch.
Mandatory Original documents could be seen by the bank therefore, you should be ready for any further document verification, such as ID proof, Address proof, account statements, income tax documents, etc.
Following documents are required along with the application form in the Loan against the sovereign Gold Bonds scheme.
- For Identity Proof – Copy of voter ID card, Passport, or Driving license.
- For Residence Proof – Copy of Passport, electricity bill, telephone bill, voter ID card, gas bill.
- Official address proof of employees.
- Latest Passport size photograph of the applicant or co-applicant.
- The latest copy of the Form 16 certificate from the employer (for employees) of the applicant or co-applicant.
- Bank account statement of last 6 months in which the salary is credited of the applicant or co-applicant.
- The latest monthly salary slip (around 3 months) shows deductions from the account of the applicant or co-applicant.
- An acknowledged Copy of Income-tax (IT) returns by the income tax officer for the last 2 years with computation of income.
Interest Rate for SBI Loan against Sovereign Gold Bonds?
1-year SBI MCLR rate for SGBs is 7.25%
Over 1-year SBI MCLR rate for SGBs is 2.0%
The infective interest rate for SBI loans against Sovereign Gold Bonds is 9.25% (Interest rate may vary from applicant to applicant).
In this loan scheme, the interest rate will be charged monthly.
Note: The interest rates can change with the passage of time.
Loan Tenure/repayment time for SBI Loan against Sovereign Gold Bonds?
For the Overdraft Loan facility, loan tenure is – 36 Months (3 years).
For the Demand loan facility, loan tenure is – 12 months (1 year).
Examples of EMI Calculations for SBI Loan against Sovereign Gold Bonds
With An Interest rate of = 9.88% Per Annum.
SBI Loan Against sovereign gold bonds scheme’s EMI = Per Month Amount to be paid by the customer to the bank.
|Loan Amount||EMI for 1 Year||EMI for 2 Year||EMI for 3 Year|
|20,000 Rs.||1,757 Rs.||922 Rs.||644 Rs.|
|50,000 Rs.||4,393 Rs.||2,304 Rs.||1,611 Rs.|
|1 Lakhs Rs.||8,786 Rs.||4,609 Rs.||3,221 Rs.|
|20 Lakhs Rs.||1,75,720 Rs.||92,179 Rs.||64,422 Rs.|
Charges & Fees in SBI Loan against Sovereign Gold Bonds Scheme?
- Processing Fees – 0.50% of the sanctioned loan amount + applicable service tax additional. (OR, charges subjected to a maximum of 500 Rs. + applicable additional service tax).
- Margin rate by the bank – 35% (Of the market value of sovereign gold bonds is in favor of bank). This means you will get a 65% loan amount of the value of your sovereign gold bonds.
How Can you Apply For SBI Loan against Sovereign Gold Bonds?
- First, download the application form to the official website (Mention above in the article).
- Along with this application form, carry all mentioned or required documents (such as document copies, passport size photos, etc) with you, and visit the nearest SBI branch.
- Fill the application form carefully such as, applicant’s name, address, branch name, age, gender, occupation, income, co-applicant name (if any), loan amount, loan purpose, etc.
- Some details that you fill in the application form must be as same as in your ID proof, address proof, etc.
- All documents that are required to be attached with the application form should be self-attested (Signature on every attached copy).
- If you facing any problem regarding to fill the application form ask the bank’s employees how to fill the form correctly.
- After completing the form, submit it with all attached copies of documents to the related bank employee.
FAQ – SBI Loan against Sovereign Gold Bonds
What if, my account is not in SBI, I can apply for an SBI loan against the Sovereign Gold Bond scheme?
Yes, you can, But you must transfer your Sovereign Gold Bonds to Demat account with SBICAP Securities Ltd (SSL).
SBI Loan against Sovereign Gold Bonds Customer Care/Contact information?
- Visit the nearest SBI Branch to solve your all doubts.
- Email – firstname.lastname@example.org, email@example.com
- Toll-free Numbers – 1800112211, 18004253800, 08026599990