Loan against sovereign gold bond ICICI , ICICI bank loan against sovereign gold bond – ICICI Bank Sovereign Gold Bond Scheme for all investors who want to invest in digital gold . While , it is a good investment opportunity for investors on other hand it is also an investment for emergency which can withdrawal at any time . Other than investing in Physical gold , the scheme offers investing in Gold Bond issued by the Bank which offers a high return compared to physical gold .
On one hand , it is lucrative investment scheme for new investors it can also be considered as an investment for emergency . For those who have already invested in the ICICI Bank Sovereign Gold Bond Scheme, their is a great confusion that can obtain a loan against such Gold Bond from ICICI bank or some other banking institution .
How much Investment does Sovereign Gold Bond Scheme requires ?
Investment in ICICI Bank Sovereign Gold Bond scheme is a great option for investing for long term investors , apart from holding for long term gains , investment in ICICI Bank Sovereign Gold bond scheme also offers tax saving benefits and loan options against the bonds for emergency needs of the investors. Based on the last few years performance of the gold , the bond price works on the price index of the Gold and can be considered as an outperforming asset in the last few years .
To invest in ICICI Bank Sovereign Gold Bond Scheme , the minimum investment can be made is of one gram which will cost around 5000 to 5500 INR. For an individual , the minimum investment is one gram and maximum can be made of 4 kg in a year .
Benefits of Investing in ICICI Gold Bond Scheme ?
For long term investors ICICI Gold Bond Scheme is a good option to invest . It is a kind of digital gold to be purchased from the bank and can be stored in the Demat format like any other security or shares . Investing in ICICI Gold Bond Scheme offers the following benefits :
- Higher returns on investment including addition 2.5 percent interest other than fluctuations in the price of the investment value .
- The bond can be redeemed after 5 years , while the lock in period is of 8 years to fight the price volatility .
- Backed by Government , the security is issued by Government and is regulated by RBI , SEBI and other investing authorities .
- One can apply for loan for a particular proportion of the investment against these bonds from the bank . The ratio of the loan depends on the value of investment and the bank policies .
- The bonds offers tax savings for long term investment , while the interest is liable to be taxed as income of the recipient .
Can You take Loan Against ICICI Bank Sovereign Gold Bond Holdings ?
Yes , ICICI Bank and all other banks offers loan against investment made in the Sovereign Gold Bond Scheme of Government . To be eligible to apply for loan against investment made in Sovereign Gold bonds, you need to hold the bonds in a Demat format and have to pledge those holdings to the bank . In case , invested in a physical format the bonds need to be converted in a Demat form and then can be used to apply for the loan .
What amount of loan can be obtained against Sovereign Gold Bonds ?
The maximum and minimum amount of loan that can be applied depends on the CMV of the investment and the amount of loan required . For instance , SBI offers loan against Sovereign Gold bond investment for a minimum value of 20000 to a maximum of Rs 20 lakh based on investment made in the Gold bonds . Same in the way , other banks offers loan on different terms .
Also read : New Bank Rules Issued for Cheque Bounce Rules , Charges and Defaults
How to process loan against Sovereign Gold Bonds from ICICI Bank ?
To apply for loan against Sovereign Gold Bonds from ICICI Bank , you can follow the process below :
- Go to ICICI Bank Official Website .
- Click on Loan Against Securities Tab
- Go to More >> Eligibility Check
- Click on Request Call Back or Apply Online to Submit your loan query to the bank .
- Enter your loan needs , Mobile number and Email .
- Click Submit .
The ICICI Banking Individuals or the concerned loan department will call you back in 24 to 48 hrs. On visit of the loan agent , you have to provide all KYC Documents , Passport Size photographs and all documents asked by the agent . Once the loan is processed , the demat holdings will be pledged and the loan amount is issued to the account holder .
If you have any queries related to ICICI Bank Soverign Gold Bond investment or loan application , then you can share us your feedback down in the comment section below .