Key facts
What the official sources publish
Every value below belongs to this exact product. Select a source marker to check its context.
Eligible collateralSovereign Gold Bonds held physically when issued through SBI, or in demat form through an SBI Securities demat account
Source 1Published loan range₹20,000 to ₹20 lakh per individual
Source 2Published margin35% of the market value of pledged SGBs
Source 3Current published rate10.70% p.a. effective 15 August 2025, based on one-year MCLR of 8.70% plus 2.00%Effective 15 Aug 2025
Source 4Facility tenorUp to 36 months for overdraft and 12 months for demand loan
Source 5Processing fee0.50% of the loan amount plus applicable tax, or ₹500 plus applicable tax, whichever is higher
Source 6Prepayment chargeNo prepayment or foreclosure penalty under the published FAQ
Source 7Benefits and features
- Demand-loan and overdraft choices
- Borrowing up to ₹20 lakh
- No income proof under the published process
- No published prepayment penalty
- General-purpose use other than speculation
Eligibility
- Applicants must be above 21 and capable of servicing interest and principal.
- Physical SGBs must have been issued through SBI; demat SGBs require an SBI Securities demat account.
- The loan is not available for speculative purposes.
- SGB market-value changes affect collateral coverage.
Passing a listed condition does not mean the bank will approve an application.
Documents the bank lists
- Application form and photographs
- KYC and SBI savings-account details
- Eligible physical SGB holding evidence or SBI Securities demat statement
- Pledge or lien documentation requested by SBI