Loan Against Sovereign Gold Bonds from State Bank of India

Leverage the power of your sovereign gold bonds to pay off your debts

State Bank of India Loan Against Sovereign Gold Bonds

This scheme helps borrowers access funds for personal needs by pledging their Sovereign Gold Bonds in the favour of SBI. This loan can be used to meet any personal needs such as a child’s wedding, overseas travel, child’s higher education, etc. as well as to consolidate debts.

Features of SBI Loan Against Sovereign Gold Bonds

Why this Loan?

  • The SBI Loan Against Sovereign Gold Bonds is meant for borrowers who want to get access to funds by pledging Sovereign Gold Bonds to meet their financial needs
  • This loan can also be availed by borrowers to pay off their high-interest debts, thereby consolidating their loans

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 20 lakh


  • The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor. As of October 2020, the effective interest rate applicable to this loan is 9.00%


  • This loan is repayable within 3 years or the residual period of the Sovereign Gold Bond, whichever is earlier


  • All borrowers should be above the age of 21 years
  • The Sovereign Gold Bonds must be issued through SBI to be eligible for this loan

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 25% of the value of Sovereign Gold Bonds at the time of sanction of the loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a margin of 20% means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Security Needed

  • The bank accepts sovereign gold bonds to secure this loan

Processing Charges

  • The bank charges up to 0.50% of the loan amount plus tax for processing this loan with a minimum of Rs. 500

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Reference Facts

  • State Bank of India Website: and (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800