Sr. No. |
Features of the Scheme |
Brief Details of the Features |
1 |
Target Group of Borrowers |
Individual a person resident of India being an individual in his capacity as individual or on behalf of minor child or jointly with another individual.
Trust, Charitable Institutions, University and Holders of Sovereign Gold Bonds issued by RBI on behalf of GOI.
HUF is not eligible for availing loan against SGB
|
2 |
Criteria of Eligibility |
To be Holder of Sovereign Gold Bond issued by RBI on Behalf of GOI.
|
3 |
Entry Age |
For Individuals A person above 21 years of age |
4 |
Purpose of Loan |
For Personal and Bankable purpose not for speculative purpose. |
5 |
Amount of Loan |
Minimum Rs. 25000/-
Maximum for Individual Rs. 25.00 Lakh
Maximum for Non-Individual - Rs. 500.00 Lakh
Loan can be availed as Demand Loan or Term Loan
|
6 |
Margin |
35% |
7 |
Repayment Period |
Demand Loan:
12 months, Bullet payment along with interest has to be done at the end of the term.
Term Loan; Till the date of maturity i.e 8 years or residual period of the Gold Bond whichever is earlier. Term loanj to be paid in EMI
Holiday Period: NIL
|
8 |
LTV to be Maintained |
Loan to Value to be 65% |
9 |
Account to be Opened |
In Finacle Directly |
10 |
Security |
SGS held in two forms one in Bon Ledger Format (BLA) also called Certificate of Holding (COH)and another is in Demand form
|
11 |
Assessment of Loan |
It will be computed on Advised Gold Rate for 24 carat gold as advised by PCD.
No manual intervention, the unit price for lending will be automatically available in the system
|
12 |
Procedure for Marking Lien |
There are two types of SGB
First type is in BLA. The Nodal Branch is Nugambakkam branch who will mark lien in E Kuber Portal and will give lien reference number
Another type is in Demat format, the Lien will be marked by Depository Chennai and will give the lien reference number.
A separate portal in IOB online Branch products is available, where the branch will follow maker and checker concept and will give the Bond Details. This will go the respective Nodal Branch who will mark lien and will give lien reference number.
|
13
|
Lending in Joint Names |
Wherever the SGBs are in joint names, the loan account should also be in joint names.
|
14
|
Nomination Availability |
IT is available, in case of death of SGB Holder, the SGB should be handed over to the nominee after verifications of nomination details through the respective nodal branches.
|
15
|
Whether Loan can be given against Bond availed from other Banks |
Yes, However the customer to undertake to route interest paid on SGBs in the account maintained with our bank
|
16
|
Other Important Features
|
Format of Application form, Sanction advice and other documents as given in circular ADV/64/2023-24 dated 20.07.2023 of RBD to be obtained.
Loan to be opened and released only after getting security reference number from the Nodal Branches
The loan to be released in the account with our bank only.
|