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
Resident Individuals, Trusts, HUFs, Charitable Institutions and Universities.
Type of facility
Overdraft and Term Loan
Rate of Interest
Minimum Loan Amount
Rs. 20 Thousand
Maximum Loan Amount
Rs. 25 Lakhs
Overdraft – 24 Months
Term Loan – 48 Months
35% - For loans up to and including Rs. 20 Lakh
50% - For loans above Rs. 20 Lakh and up to Rs. 25 Lakh
Pledge of Sovereign Gold Bonds in both Demat and BLA/Physical Certificate form
Fees & Charges
Processing Fee: 0.50% + Taxes of the limit subject to a minimum of Rs 1000 + Taxes