SBI Gold Loan & Schemes

SBI Gold Scheme

✓ Gold Loan up to 2 Cr ✓ Interest Rate Starting @ 10% ✓ Highest Gold Loan / Gram

We’ve always known gold to be a great investment in our culture. Festivals revolve around the importance of gold as a symbol of financial prosperity. But did you know that gold can be a great investment as well as a source of creditworthiness? Let’s look at SBI Gold monetisation schemes, SBI Gold Loan, and other products to see how you can add gold in your investment portfolio. 

Know More About SBI Gold Schemes

The State Bank of India, the country’s largest lender, offers a number of schemes for gold as an investment, for gold purchase as well as gold loans. Such schemes facilitate the mobilisation of the idle gold in the country’s economy. SBI Gold Scheme is a win-win, as the gold becomes economically productive while earning significant interest. 


SBI gold scheme allows the customers the opportunity to deposit idle gold and get safety, interest, and tax benefits in return. 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. Moreover, there’s also the facility to avail SBI Gold Loan by pledging gold as security for a personal loan. 


Many people buy gold jewelery for rainy days. 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 SBI Gold Scheme in detail. 

Revamped Gold Deposit Scheme (R- GDS)

In a fixed deposit, we earn assured returns on the invested money. Think of the SBI Gold Scheme as a fixed deposit. Only, here 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).

Features of SBI Gold Loan Scheme

Let’s see what the SBI Gold Loan scheme details:


  1. 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, while 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. 

  2. 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. Make sure to exclude stones and other metals in the ornaments from the final deposit value. 

  3. Nomination: The facility of nomination is available for gold deposits when they’re made by a single individual.

  4. Hassle-free process: The documentation process under the SBI Gold Loan Scheme is extremely simple, with quick processing of the loan.

  5. No hidden charges: There are no hidden charges; a processing fee is charged which is shared with the loan applicant. 

Eligibility Criteria to make a deposit

Now that you know how simple the SBI Gold Loan scheme is, it’s time to check if you’re eligible to apply. 


To be eligible for the SBI Gold Bond Scheme, you should be between 18 to 75 years of age. 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.


Who all can apply for the loan? If you’re a resident Indian 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 rate offers.  

Repayment methods of SBI Gold Loan Scheme

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. 

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. And if you make a premature payment, a penalty may be applicable on the interest rate. For Medium and Long Term Gold Deposits, withdrawal is allowed after 3 and 5 years respectively, with a penalty on the interest rate. The exact rate at which penalty is charged is notified by RBI Notifications. 

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 a 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, 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


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

SBI Gold Loan Interest Rate for various tenures

Under the SBI Gold  Scheme, the rate of interest for Short Term Bank Deposits varies across tenures. 

SBI Gold Loan Rate for short term deposits up to 1 year is 0.50% per annum, for loans in the period between 1 to 2 years, the rate is 0.55% per annum, and for SBI gold bond schemes between 2 to 3 years is 0.60% per annum. 


The rate of interest on Medium and Long Term Gold Deposits is 2.25% per annum and 2.50% per annum respectively.

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.

SBI Personal Gold Loan

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. 

Features of SBI Personal Gold Loan

  • 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. 

Eligibility of SBI Personal Gold Loan

Any individual, 18 years and above, can apply for SBI Gold Loan Scheme. You just need to have a steady source of income.

Documents Required for SBI Personal Gold Loan

At the time of the loan application, you will need an application, two photographs, proof of identity, and proof of address.


At the time of disbursement, you will need the DP note and DP Note Delivery Letter, the Gold Ornaments Delivery Letter, and the Arrangement Letter.

SBI Sovereign Gold Bond 2021

Launched in 2015, the Sovereign Gold Bond Scheme allows subscriptions to be made to sovereign gold in tranches by the RBI. The exact terms of the scheme are notified from time to time. As a part of the SBI Gold Monetisation Scheme, this scheme allows gold to mobilise within the economy. 

Features of SBI Sovereign Gold Bond 2021

  • 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. 

Eligibility Criteria for SBI Sovereign Gold Bond 2021

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

Documents Required for SBI Sovereign Gold Bond 2021

You will need to furnish the usual KYC documents. These include a 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, 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. 

Interest Rates of SBI Sovereign Gold Bond 2021

Your return is calculated at a fixed rate of 2.5% per annum on the nominal value. 

SBI Gold Fund

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).

Features of SBI Gold Fund

  • Minimum Investment: To get started in the fund, you will need to make a minimum initial purchase of Rs 5000. Additional investments will need to be a minimum of Rs 1000. 

  • No Demat account needed: The Gold Fund SBI allows you to invest in gold without actually opening a Demat account or buying physical gold. 

  • Redemption: Since it’s an open-ended fund, you can redeem it at any time. The liquidity of this investment is high.

  • Expenses and charges: The only fees you have to pay are the recurring charges of the scheme.

Frequently Asked Questions on SBI Gold Scheme

  • ✔️What is the applicable margin on an SBI Gold Loan?

    SBI Gold Loans are available at a 25% margin. This means that you can avail of a loan of up to 75% of your gold’s value.

  • ✔️How much gold loan can I avail from SBI?

    You can get up to Rs 50 Lakh 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.

  • ✔️Do I have to pay prepayment charges on the SBI gold loan?

    You can prepay and foreclose your gold loan, which will incur prepayment charges. SBI doesn’t charge prepayment penalties.

  • ✔️What documents are required with the SBI gold loan application?

    You will need to furnish some proof before your application can be processed. These include a 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, 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.

  • ✔️Why should I opt for a gold loan?

    A gold loan can be extremely helpful when you need funds urgently, and

    1. Want to avoid extensive paperwork with just basic KYC documents

    2. Own gold in some form that you can pledge

    3. Do not have a credit history or CIBIL score that can secure you another loan

  • ✔️What tenures can I make gold deposits for?

    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.

  • ✔️Does an SBI gold loan impact my CIBIL score?

    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.

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