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IDBI Gold Schemes

When actual/expected returns on equity and other market-linked instruments fall, the return/price of gold increases. Moreover, with the current market volatility and below-average equity returns, gold has become a popular option. 


One of the ways you can use gold to ride a tough financial tide is by availing a gold loan. Many financial institutions don't just allow you to invest in gold but also pledge your gold as security and get the funding you need. Among these institutions is the IDBI Bank.


Availing an IDBI Bank Gold Loan against your investment is easy and hassle-free. You can even invest in SGBs, ETFs, and other gold investment options through the bank, making it a one-stop solution. Read on to learn more about the IDBI Bank Gold Loan scheme and investment options.


Before you go ahead and make a financial decision, you need to first get to know the many IDBI Gold Loan schemes and investment options available. Here are some of them.

IDBI Bank Gold Loan

The IDBI Gold Loan can assist farmers who need funds to meet their cultivation requirements, self-employed people who need to fund business needs, and traders and distributors who have any medical emergencies or other expenses. 


You can pledge any gold ornaments or other physical gold in exchange for borrowed funds. With a repayment tenure of up to 1 year, you can borrow a minimum of ₹10,000 and a maximum of ₹20 Lakhs.


The IDBI Gold Loan interest rate is nominal, making your borrowing affordable and repayment easy. You can even use the gold loan EMI calculator to find the loan terms that best fit your current and future financial needs while ensuring that you can make timely repayment.

  • IDBI Bank Gold Loan Interest Rates

IDBI Bank Gold Loan interest rate starts at 7.00% per annum and varies depending on the loan you avail. This makes it a cost-effective option for customers looking to access funds using their gold assets. 


In addition, the processing charges are minimal, making it a hassle-free and affordable loan option. With quick and easy loan processing and flexible repayment options, IDBI Gold Loan Scheme is ideal for budget-friendly financial assistance.

  • IDBI Bank Gold Eligibility & Documents

Here is the list of Gold Loan eligibility criteria and documents required.

Eligibility Criteria

Documents Required

  • You must be above 21 years

  • Must have the minimum income required

  • Voter ID, PAN Card, Driving Licence

  • Current professional degree certificate

  • 12 months of Income Proof

  • Proof of existence – the electricity bill, phone bill, lease deeds etc.

  • Address Proof – Passport, Ration Card, etc.

Additional eligibility criteria, such as agricultural income or minimum land area, may apply to the agricultural gold loan scheme. You can check the exact eligibility requirements as per the type of loan you choose on the bank website or contact their customer service.

IDBI Sovereign Gold Bonds

If you want a safer way to invest in medium- or long-term gold, you can also invest in IDBI Sovereign Gold Bonds. The Reserve Bank of India issues these bonds on behalf of the Indian Government, denominating in multiples of grams of gold. The basic unit is 1 gram of gold.


IDBI Bank Sovereign Gold Bonds offer interest at the rate of 2.5% per annum, payable on the bond’s nominal value, and they come with a tenure of 8 years. Premature exits are allowed from the fifth year onward.

  • How do I purchase a Sovereign Gold Bond from IDBI Bank?

If you are an existing IDBI Bank customer, you can log in to your net banking portal and purchase the SGBs you want. If you are a new customer, you can visit the bank branch with your KYC documents and submit the application at the branch.

Keep in mind that the maximum SGB value is capped at 500 grams for a fiscal year. Before investing, be sure to check the availability and current market price. You should also save the bond certificate for future reference. 

  • Why is investing in IDBI SGB a better option compared to physical gold?

If you're wondering why you should invest in the SGB than in physical gold. Here is a comparison of the different investments in terms of purchase, selling, maintenance, and tax implications:





Tax Implications

Gold Jewellery

Making charges is up to 20%

Taxes, value-added charges, and loss of making charges

Secure lockers, cost of lockers and/or insurance

Long-term capital gains (LTCG) tax after 3 years

Gold Bars/Coins from the bank

Mark-up charges of up to 20%

Cannot resell to the bank

Secure lockers, cost of lockers and/or insurance

Long-term capital gains (LTCG) tax after 3 years

Sovereign Gold Bonds


Processing charge of ₹1 for every ₹100 of the bond value at the time of redemption

Are stored in the RBI books/ your demat account, eliminating loss risks

Interest earnings taxable as per the applicable tax slab

Concerning the above comparison, a clear benefit of investing in SGBs rather than physical gold is that you don't have to bear additional costs at the time of investment. That's not all. Since SGBs are stored in the RBI book, it eliminates the loss of scrip risk, ensuring your investment is safe.

IDBI Gold Exchange Traded Fund

In addition to the IDBI Bank Gold Loan scheme and the IDBI gold bonds detailed above, you can also choose to invest in IDBI Gold Exchange Traded Funds (ETFs). These open-ended funds track the performance of gold and replicate it so that you can benefit from the price movements of the yellow metal. 

In other words, gold ETFs from IDBI allow you to invest passively in gold without the added stress of timing the gold market. Gold Exchange Traded Funds have certain distinct features and benefits. You can take a closer look at these below.

1. Feature of IDBI Gold Exchange Traded Fund

Here are the main features of the IDBI Gold Exchange Traded Fund.

  • Gold ETFs are traded on the exchange, making buying and selling much easier

  • IDBI gold ETFs are available for medium-risk profiles as well as low to medium-risk profiles

  • Gold ETFs invest in physical gold and gold-related instruments, as well as in debt and money market instruments

  • IDBI Gold ETFs do not come with any entry load or exit load

  • The benchmark is the domestic price of physical gold

2. Benefits of IDBI Gold Exchange Traded Fund

Investing in gold ETFs offered by IDBI comes with many benefits. Here are the top advantages.

  • Since ETFs are traded in dematerialised formats, the risk associated with holding physical gold is eliminated

  • Gold ETF units are backed by 24-carat gold of 99.5% purity, thereby ensuring that your investment is of top quality

  • You can invest with even small amounts since it is possible to buy ETFs representing 1 gram of gold too

  • Gold ETFs are highly liquid and can be purchased and sold via exchange quickly

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IDBI Gold Fund

The IDBI gold fund allows you to invest in gold through a Systematic Investment Plan (SIP). The key objective of the IDBI gold fund is to generate returns that closely correspond to the returns offered by the IDBI Gold ETF. 


In simple terms, the gold fund also provides returns closely linked with the returns the precious yellow metal offers. Plus, it makes for a good long-term investment option if that is the investment horizon you are looking for.

1. Features of IDBI Gold Fund

Take a look at the main features of the IDBI gold fund.

  • The minimum amount needed to invest in the gold fund is ₹5,000

  • The minimum additional investment you can make is ₹1,000

  • If you wish to invest in this fund through a Systematic Investment Plan (SIP), the minimum investment amount is ₹500

  • The minimum amount of withdrawal permitted is ₹1,000

  • Exit load is applicable at 1% of the redemption amount if made within 365 days

2. Benefits of IDBI Gold Fund

The IDBI gold fund offers a wide range of advantages for the investor. Here are some ways you can benefit from investing in the IDBI gold fund.

  • Since the fund aims to offer returns in tandem with the returns generated by the IDBI Gold Exchange Traded Fund, you can rest assured that you do not need to time the market closely.

  • Since investing in the IDBI gold fund is entirely digital, holding physical gold is unnecessary. This eliminates the risk associated with handling the yellow metal in its physical form and ensures that your investments are highly secure.

  • You can invest in the IDBI gold fund through a SIP on a monthly or quarterly basis. This adds a layer of convenience and customisation to your investment plan.

  • Both direct and regular investment plans are available. You can choose the one that best meets your financial goals.   


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs About the IDBI Gold Loan Scheme

Are my gains from IDBI gold ETFs taxable?

If the gains from IDBI gold ETFs are STCG, they are taxable as per your income slab rate, while LTCG are taxable at 20% with indexation.  


Can I avail of a gold loan from IDBI?

Yes, you can avail of an IDBI Gold Loan by pledging any physical gold you possess. You can borrow amounts ranging from ₹10,000 to ₹20 Lakhs and repay the loan over tenures ranging from 3 months to 12 months.  

What is the gold loan interest in IDBI Bank?

The gold loan interest rates in IDBI Bank start at 7.00% per annum, which may vary based on factors such as loan amount, tenure, and LTV ratio. Please note that the interest rates are subject to change from time to time, and it is recommended to check with IDBI Bank for the latest interest rates.


Are there any risks in investing in SGBs?

Like any other investment, investing in Sovereign Gold Bonds (SGBs) carries some risks. The value of gold may fluctuate, and it is subject to market risks. Additionally, changes in tax laws or government policies may impact investment returns. However, SGBs are considered a relatively safer investment option than physical gold.


How can I find out the status of my gold loan at IDBI Bank?

To check the status of your IDBI Bank Gold Loan, you can visit the official website and go to the "Loan" section. You can track your loan by filling out a simple form with your personal details. This allows you to stay updated on your loan's progress and check its status anytime and anywhere.


What is the rate of the gold loan per gram in IDBI Bank?

The rate of the gold loan per gram in IDBI Bank may vary depending on various factors such as the loan amount, loan tenure, gold purity, and loan repayment history. You can check the latest information and details regarding the IDBI Bank Gold Loan scheme on the website.


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