Investment in gold over both short and long terms can provide you with sumptuous returns. Furthermore, they are not associated with money market fluctuations, which makes them a perfect option for investors looking for a low-risk investment scheme. Apart from this, you have the option of withdrawing money from this scheme during financial emergencies. Keep reading to know more about SBI gold schemes and decide if it is the right option for you.
Just like a fixed deposit, we earn assured returns from SBI Gold Scheme as well on the invested money. Only, in case of SBI Gold Scheme instead of money, you’re making a fixed deposit of gold. In return you get the reassurance of safety of your idle gold, and earn interest earnings on the deposited gold, among other benefits. The SBI Gold Monetisation scheme is called the Revamped Gold Deposit Scheme (R- GDS).
Type of Deposit |
Interest Rate |
Tenure |
Short Term Bank Deposit (STBD) |
0.50% |
For 1 year |
Short Term Bank Deposit (STBD) |
0.55% |
1 to 2 years |
Short Term Bank Deposit (STBD) |
0.60% |
2 to 3 years |
Medium Term Gold Deposit (MTGD) |
2.25% |
5 to 7 years |
Long Term Gold Deposit (LTGD) |
2.25% |
12 to 15 years |
Disclaimer: The data in the above table is subject to change. Please confirm the interest rates from the official website before proceeding.
Let’s see what the SBI Gold Loan scheme details:
Tenure: The deposits can be made on a short-term, medium-term or long-term basis.
The tenure of the Short Term bank Deposit ranges from 3 months to 36 months.
For Medium Term Government Deposit, the tenure ranges from 5 to 7 years
for Long Term variants, it ranges from 12 to 15 years. Under these two SBI gold schemes, the deposit is said to be accepted by the Bank on behalf of the Central Government.
Minimum and Maximum Deposit: There’s no upper limit to the deposits you can make, but the minimum quantity of gold — whether gold bars, coins, jewellery — should amount to at least 10 grams of raw Gold.
Nomination: You have the flexibility of nominating a person of your choice for the investments that you are making. They will be able to receive the returns in case of your untimely demise.
Hassle-free process: The documentation process under the SBI Gold Loan Scheme is extremely simple. Also, you can follow some simple steps online while applying for a gold credit.
No hidden charges: There are no hidden charges associated with this scheme. You will only have to pay a processing fee during the loan application process.
SBI Gold Loan Scheme also offers personal loans. They can be availed by putting up gold ornaments as security. As mentioned before, it’s a hassle-free process with minimal paperwork involved.
Particulars |
Details |
Charges |
Processing Fees |
Specially minted Gold Coins sold by Banks and BIS Hallmarked Jewellery |
0.50% of the Loan Amount which is subjected to a maximum of Rs. 500 + applicable Service Tax and 0.50% of the Loan Amount subject to a minimum of Rs. 250 |
Non Hallmarked Jewellery |
0.50% of the loan amount which is subjected to a minimum of Rs. 500 + service tax for loans above Rs. 25,000. Rs. 250 + service tax for loans up to Rs. 25,000 |
|
Interest Rate |
Liquid Gold Loan Scheme - OD |
7.40% p.a. |
Demand Loan |
7.40% p.a. |
Disclaimer: The data in the above table is subject to change. Please confirm the charges from the official website before proceeding.
Interest rate: The interest rate, irrespective of the loan amount, will be 0.50% above the 1 year MCLR. The current SBI Gold Loan interest rate starts at 7.30% and goes up to 7.50%.
Tenure: The loan can be availed for up to 36 months.
Repayment options: You get multiple repayment options, including the gold loan Bullet Repayment method, where you can repay the entire amount, consisting of both the principal and interest, at the end of the loan’s term.
Maximum and minimum amount: The maximum loan amount you can avail is Rs 50 lakhs and the minimum amount dispensed in a personal gold loan is Rs 20,000.
Security: You will pledge gold ornaments under this loan which will be verified and appraised for quality
Fees: Processing fees can amount to 0.50% of the loan amount. Add to that GST and the Gold Appraiser charges.
Any individual, 18 years and above, can apply for SBI Gold Loan Scheme. You just need to have a steady source of income.
At the time of the loan application, you will need:
An application form,
Two photographs,
Proof of identity,
Proof of address
At the time of disbursement, you will need the the following:
DP note and DP Note Delivery Letter
Gold Ornaments Delivery Letter
Arrangement Letter
The Gold Fund SBI is an open-ended gold commodities scheme. It’s a way for you to get returns through investment in gold without actually owning physical gold or Demat account. The Gold Fund SBI seeks to provide returns that correspond to SBI Gold Exchange Traded Schemes (SBI GETS).
The investors are eligible to get a fixed rate of interest of up to 2.50% per annum on the nominal value. They can receive this money semi-annually to get access to funds.
Minimum Investment: The minimum initial purchase of Rs. 5000 is needed. Additionally, you will need to make an extra investment of a minimum of Rs 1000.
No Demat account needed: You will not need to open a Demat account to invest in Gold Fund SBI
Redemption: You have the complete flexibility of withdrawing funds at any time from this scheme. This implies that the liquidity of investment in this scheme is high.
SBI Gold Loans are available at a 25% margin implying that you can avail of a loan of up to 75% of your gold’s value.
You can get up to Rs. 50 Lakhs under the SBI Gold Loan scheme. The amount will depend upon the value of the gold being pledged. The Gold Loan is offered with a margin of 25%, so that means you can borrow up to 75% of the gold value as a loan.
You will have to deposit a minimum of 1 g of gold under the Sovereign Gold Bond Scheme.
The minimum loan amount that you can get under SBI gold loan schemes is Rs. 20,000. Furthermore, the maximum credit amount available under this scheme is Rs. 50 Lakhs.
Yes, there is a lock-in period of 1 year, after which you can withdraw any amount as per your need.
A gold loan can be extremely helpful when you need funds urgently, and
Want to avoid extensive paperwork with just basic KYC documents
Own gold in some form that you can pledge
Do not have a credit history or CIBIL score that can secure you another loan
You can choose from either of the 3 types of deposits under the SBI Gold deposit scheme, namely, Short Term Bank Deposit, Medium Term Government Deposit, and Long Term Government Deposit.
Just like any other loan, timely repayment of your gold loan EMI will improve your CIBIL score, while defaulting on repayment will negatively impact your credit credentials.
The interest rate of the SBI gold loan starts from 8.65%.
Individuals above the age of 18 years with a stable source of income are eligible for SBI gold loan.
Yes, individuals are eligible for purchasing gold between 2 gm and 50 gm from authorised SBI branches.