SBI Gold Loan

Customers on investing in the SBI gold scheme gets the opportunity of ensuring safety of their ornaments, earning interest, and availing tax benefits on returns. This gold can be bought from authorised branches of the bank. 

There are specifically designed SBI gold investment schemes you can invest into, like the Sovereign Gold Bonds and Gold Mutual Fund schemes that function as systematic plans. Also, there are many people who buy gold jewelery for rainy days when the prices are comparatively lower.  

Furthermore, you also have the flexibility of pledging your ornaments to raise a credit against it to meet the urgent requirement of funds. SBI Gold Loan allows you to mortgage these ornaments as collateral security and access funds you may need for urgent or unplanned expenses like healthcare costs, education costs, wedding planning, etc. Let’s look at the SBI Gold Scheme in detail. 

• The amount that you can avail this loan for varies from Rs 1000 to Rs 2 Crore, at 90% of the value of the gold.

• An Indian resident falling in one of the following categories and have the appropriate documents as proof, you are eligible:

• Individuals (you can apply alone or jointly)

• HUFs, Sole Proprietorship & Partnership firm, Companies

• Charitable institutions, Trusts (including Mutual Funds, etc.)

• Central Government, State Government, or entities owned by them

Application for the SBI Gold Scheme can be made directly at the branch or even simpler, by filling an online application. The gold is checked for its purity and weight. Raw gold like gold jewellery and gold coins of 18 to 22 carat and up to 50 grams are accepted for the purpose. You can also apply through Bajaj Markets to get the best gold loan interest rate offers.  

1. Documents Required for SBI Gold Loan Scheme

You will find that the SBI Gold Investment Scheme has one of the smoothest documentation processes. You will need to furnish some proof before your application can be processed. These include proof of identity and another proof of address. You can use the following documents for this purpose:

• Identity proof: PAN Card, Driving License, Passport, your Voter Identity Card, Aadhaar Card

• Address proof: Voter identity Card, Aadhaar Card, rent agreement if you live on rented premises, utility bills like water, electricity or gas, or even your bank statement

Attach these documents along with the application form and any other papers you might be required to share. 

2. Repayment methods of SBI Gold Loan Scheme

Borrowers have the flexibility of repaying the credit in the following ways: 

• Repayment of principal on the Short Term Bank Deposits can be taken in the form of gold or the equivalent monetary value of the gold as on the date of maturity. 

• In the case of Medium and Long Term Gold Deposits, the repayment is in the form of gold or the equivalent rupee value of the gold at the prevailing price on the date of maturity. However in this case, administrative charges are levied. 

3. Premature payment of SBI Gold Loan Scheme

The Gold Bank Deposits come with a lock-in period.

• For Short Term Bank Deposits, the lock-in period is 1 year. 

• For Medium Term Gold Deposits And, withdrawal is allowed after 3 years.

• For Long Term Gold Deposits, the lock-in period is 5 years.

On making a premature payment, you will have to pay a penalty on the interest rate. The exact rate at which penalty is charged is notified by RBI Notifications. 

4. Who can invest in SBI Gold Deposit Scheme?    

The people are eligible to invest in this scheme are:

• Individuals either singly or jointly

• Partnership firms

• Proprietorship 

• HUFs

5. Issue of Gold Deposit Certificate and Effective Date

Once the processing for your SBI Gold Loan Scheme is complete, you will be issued a Gold Deposit Certificate by the nodal branch.

1. Features of SBI Sovereign Gold Bond 2023

• Return: The amount you receive at the time of redemption is the average of the closing price of gold of 999 purity of the previous 3 working days.

• Tenure: The loan can be availed for a period of 8 years. There are exit options available in the 5th, 6th, and 7th years. 

• Minimum investment: You need to make a minimum investment of 1 gram of gold

• Certificate: As an investor under this scheme, you will be issued a Holding Certificate for the bonds. These are issued under the Government Security Act, 2006. As such, they’re just like any Government of India stocks. 

2. Eligibility Criteria for SBI Sovereign Gold Bond 2023

Any resident Indian is eligible for the bonds. This includes individuals, HUFs, trusts, Universities, Charitable institutions. 

3. Documents Required for SBI Sovereign Gold Bond 2023

You will need to furnish some important documents while investing in a SBI Sovereign Gold Bond. These essentially include proof of identity and proof of address. You can use the following documents for this purpose:

• Identity proof: PAN Card, Driving License, Passport, your Voter Identity Card, Aadhar Card

• Address proof: Voter identity Card, Aadhar Card, Rent Agreement if you live on rented premises, Utility Bills like water, electricity or gas, or even your Bank Statement

• PAN Number is mandatory to be furnished. 

4. Interest Rates of SBI Sovereign Gold Bond 2023

The returns that you are supposed to earn is based on a fixed interest rate of 2.5% per annum on the nominal value. 

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