Get Instant Loan Against Sovereign Gold Bond

With Geojit, you can avail of a Loan Against Sovereign Gold Bonds (LASGB) in just a few clicks in the comfort of your home. We allow you to pledge your SGBs digitally with the help of the Geojit Credits Online facility. The benefits of LASGB from Geojit include direct credit of the loan amount to your bank account, no prepayment charges, and charging of interest only on the utilised amount and for the duration, the funds are used.

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What is a Loan Against Sovereign Gold Bond?

A Sovereign Gold Bond (SGB) is an effective investment option that helps you invest without holding gold in its physical form. Unlike regular bonds, SGBs track the price of gold and are issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

You can avail a loan against the SGBs you hold. According to the RBI, SGBs can be used as collateral for borrowings where the Loan-To-Value (LTV) ratio is similar to ordinary gold loans. Hence, using SGB as collateral, you can raise liquidity in times of need without selling your assets.

However, we recommend LASGBs for only short-term and medium-term liquidity needs.

Here are the attractive features of Loan Against Gold Bond:

Loan-to-Value Ratio (LTV)

Currently, the loan-to-value ratio for gold loans is 75%, and this applies to LASGBs too.

Loan Tenure

The tenure of LASGB is 12 months which can be renewed thereafter according to mutual consent.

Higher Loan Value

LASGB with Geojit allows you to avail of a loan starting from Rs 10,000 up to Rs 2 crore.

Repayment

LASGB with Geojit allows you to service the interest accrued every month according to the fund utilisation. Further, you can settle the loan either by paying the outstanding sum or selling the pledged SGBs.

LASGB is an excellent way to raise funds to meet short-term liquidity needs. Apart from this, LASGB from Geojit offers the following benefits:

Instant Processing of Loan

With Geojit, you don’t have to wait for days to get the loan processed. By following three simple steps, you can avail of a loan against sovereign gold bond online within a few hours.

Instant Disbursement of the Loan Amount

Geojit not only processes your loan application instantly but also credits the loan amount directly into your bank account on the same day.

100% Digital Procedure

The best thing about Geojit Credits Online facility is that you don’t have to visit the branches and submit physical documents. The process of availing of LASGB is completely online and free of hassles.

No Loss of Ownership

A loan against Sovereign Gold Bond allows you to meet liquidity requirements without losing ownership of your assets. Hence, SGB as collateral helps you achieve your long-term goals while reaping the benefits associated with the investment tool.

Attractive Interest Rates

With Geojit, you can benefit from a Loan against Sovereign gold bond interest rate of 11.99% per annum, along with flexibility in payment options. Moreover, the interest on LASGB applies only to the funds you utilise and for the duration of their use.

Zero Foreclosure Charges

Opting for a LASGB from Geojit comes with added benefits of no lock-in period and zero foreclosure charges if you wish to repay the outstanding amount early.

LASGB from Geojit is entirely a digital process and requires no submission of physical documents. However, to avail of this online facility you must:

  • Be a resident of India between 18 and 80 years of age
  • Have a valid Permanent Account Number (PAN) and masked Aadhaar Card
  • Own a valid mobile number and email ID
  • Have a valid bank account number and proof for the account to be linked
  • Have a National Securities Depository Limited (NSDL) demat account along with free holdings of eligible securities
  • Have a satisfactory Credit Information Bureau (India) Limited (CIBIL) score, also known as the credit score
Online Schemes Sovereign Gold Bond
Margin 35%
Minimum Loan Amount INR 10,000
Tenor 1 Year, subject to annual review
Rate of Interest (Per Annum) 11.99%
Processing Fee 0.50% of the loan amount + GST
Pledge Creation Charge INR 250 or 0.02% of the value of each pledge transaction plus Goods and Services Tax (GST), whichever is higher

You can avail of a LASGB by following three simple steps:

  • Create an account and complete the Know Your Client (KYC) formalities
  • Select your scheme and pledge your SGBs
  • E-sign your loan agreement

For a smoother and hassle-free experience, we recommend you keep scanned copies of your PAN, photo, Aadhaar card, signature, and bank account proof ready before applying.

We provide complete flexibility when it comes to loan repayment. You can avail of LASGB with us to meet all your financial requirements and then repay the loan amount at your convenience.

  • Interest payment on the first working day of every month after taking the loan
  • Pay only the interest amount every month
  • Make pre-payments on your loan without incurring any pre-payment charges
  • Sell off your pledged SGBs to repay the loan amount

Queries of Customers

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Customer testimonials

I am very happy with Geojit Credits Pvt Ltd as they give maximum support and assistance to help me meet my financial needs, which gives me the financial freedom to plan and achieve my goals. My requests are processed without delay, thanks to the great customer care and dedication by the team.

Muresh Kumar

Geojit Credits is clearly at the forefront on high quality customer service and customer care. I appreciate their way of making me comprehend all the pros and cons of the financial instruments that I avail, their way of keeping things simple and easy, and their way of giving prompt feedback and responses. I am quite happy with the support they provide and wish them the very best in their journey ahead."

Biju Pramod

To avail of LASGB, follow the three simple steps below:

  • Create an account and complete your KYC
  • Select your scheme and pledge your SGBs
  • E-sign your loan agreement

The amount of LASGB is up to 75% of the pledged value of the SGBs.

The tenure of LASGB is one year at a time, renewable by mutual consent.

Interest on LASGB is charged daily on the outstanding balance in the loan account and is accounted for on a monthly basis. Hence, you should pay the interest debited every month to ensure your account does not become a Non-Performing Asset (NPA).

Once the loan is closed, the bonds are transferred to your demat account according to your instructions.
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