Sovereign Gold Bond Loan - TMB

 Sovereign Gold Bond Loan - TMB 

Get the best loan offers against your sovereign gold bonds

Sovereign Gold Bonds (SGB) are government securities denominated in grams of gold.

The bonds are issued by Reserve Bank of India on behalf of Government of India and it substitutes holding of physical gold. SGBs carry sovereign guarantee and are classified as government securities.

Therefore, they can be dealt with as per the extant provisions of Government Securities Act, 2006 and hence TMB is offering loan against these bonds.

Nature of Loan

Term Loan or Overdraft.

Purpose of Loan

For business / personal purposes other than for speculative purposes or purposes prohibited by RBI / Loan policy.

Repayment Period

Term loan - Maximum of 60 months (Equated Monthly instalments). Overdraft - 2 years (Renewable).

Note: Period of loan should not exceed beyond the due date for redemption of Bond.

Quantum of Loan

The loan amount shall be fixed based on the price of gold per gram on daily basis.

The price will be reckoned on the simple average of 30 days as applicable to 24-carat gold or the prevailing market rate whichever is less.

Margin

25%.

Handling Charges

Upto Rs. 25,000 - Nil.

Above Rs. 25,000 - Rs. 150 for each loan (To be collected at the time of closure of loan).

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Goods & Service Tax (GST) on All Service Charges extra wherever applicable.

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