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Personal Banking

Last Updated on: 27/03/2024


Sr. No. Features of the Scheme Brief Details of the Features


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


Criteria of Eligibility

To be Holder of Sovereign Gold Bond issued by RBI on Behalf of GOI.

Loan will be sanctioned to Third Party


Entry Age

For Individuals

A person above 21 years of age


Purpose of Loan

For Personal and Bankable purpose not for speculative purpose.


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





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


LTV to be Maintained

Loan to Value to be 65%


Account to be Opened

In Finacle Directly



SGS held in two forms one in Bon Ledger Format (BLA) also called Certificate of Holding (COH)and another is in Demand form


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


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.


Lending in Joint Names

Wherever the SGBs are in joint names, the loan account should also be in joint names.


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.


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


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.