Loan against Sovereign Gold Bond

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Loan against Sovereign Gold Bond

Sovereign Gold Bond is a preferred investment tool as it eliminates the risks associated with the holding of gold in physical form. 

Federal Bank offers ‘Loan against Sovereign Gold Bond’ which can be used to meet your personal needs or any other lawful needs. Pledge of Sovereign Gold Bond in both demat and physical form are accepted as security. This facility is available at all our branches.  

  • Key Features & Benefits
  • Fees & Charges
  • Interest Rates

Eligible customers

Resident Individuals, Trusts, HUFs, Charitable Institutions and Universities.

Type of facility

Overdraft and Term Loan

Rate of Interest

12.50%

Minimum Loan Amount

Rs. 20 Thousand

Maximum Loan Amount

Rs. 25 Lakhs

Loan Tenure

Overdraft – 24 Months

Term Loan – 48 Months

Margin

35% - For loans up to and including Rs. 20 Lakh

50% - For loans above Rs. 20 Lakh and up to Rs. 25 Lakh

Security

Pledge of Sovereign Gold Bonds in both Demat and BLA/Physical Certificate form

Processing Fee: 0.50% + Taxes of the limit subject to a minimum of Rs 1000 + Taxes

12.50% Fixed