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SBI Gold Schemes

As an account holder of State Bank of India, you can avail a number of schemes related to gold loans and investments. Apart from purchasing gold coins, an investor can also buy Sovereign Gold Bonds and Gold Mutual Fund Schemes. All resident Indians can submit gold in form of raw gold i.e. Gold bars, Gold Coins, Gold Jewellery excluding stones and other metals. The interest on deposits under the scheme will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold whichever is earlier. The authorised SBI branches for the same are P B Branch, New Delhi, SME Branch Chandni Chowk, Delhi, Coimbatore Branch, Hyderabad Main Branch, Thyagarayanagar Branch, Chennai, Bullion Branch Mumbai and Bangalore Main Branch.

SBI Gold Coins

SBI offers purchase of gold coins from any of its bank branches across India.

Features of SBI Gold Coins

  • SBI gold coins come in tamper-proof packaging with 999.9 purity.
  • The purity comes with an Assay certification.
  • SBI gold coins are available in the following denominations - 2|4|5|8|10 grams. The rectangular bars are available in 20|50 grams.
  • The price of the gold is determined by the daily price of the gold minus the sales tax and value added tax.
  • These gold coins are sold at a reasonably competitive prices

Revamped Gold Deposit Scheme (R-GDS)

This is a fixed deposit scheme for gold where an account holder can use these accounts to deposit their gold assets and earn interests in return. The gold deposits are accepted by SBI on behalf of the Government of India. This enables the government to mobilize idle gold held among the Indian masses.

Features of Revamped Gold Deposit Scheme (R-GDS)

  • Minimum quantity of gold which has to be deposited is 30 grams.
  • STBD - This is a Short Term Bank Deposit with a tenure of 1-3 years where the deposit can be redeemed in the form of cash or gold upon maturity. STBD attracts a premature withdrawal penalty post 1 year of deposit.
  • MLTGD - This is a Medium and Long Term Government Deposit with a tenure of 5|7 years and 12|15 years where the deposit can be redeemed in the form of cash equivalent to the value of the gold as per the rate applicable on the date of maturity. MTGD attracts a premature withdrawal penalty post 3 years of deposit while it is 5 years for LTGD.
  • Scrap gold in the form of bars, coins and jewellery is accepted by the SBI.
  • A Gold Deposit Certificate will be issued by the Nodal branch. A deposit certificate for the gold is issued by the nodal branch and nomination for the account is also available.

Eligibility and Documentation

for investing in Revamped Gold Deposit Scheme (R-GDS)

  • Individual, single or joint account holders can apply for this scheme.
  • Proprietorship.
  • Companies.
  • Partnerships and HUFs.
  • Trusts, ETFs and Mutual Funds regulated by SEBI.
  • Application form.
  • Identification form.
  • Address proof.
  • Inventory form.

Interest Rate

TypeTenureRate of Interest per annum
Short Term Bank Deposit1 year0.50%
2 year0.55%
3 year0.60%
Medium Term Gold Deposit5-7 years2.25%
Long Term Gold Deposit12-15 years2.50%

SBI Personal Gold Loan

By pledging gold jewellery, ornaments and coins, you can avail a gold loan to finance your personal requirements such as education, medical bills, marriage, home, travel etc.

Features of SBI Personal Gold Loan

  • You can avail a loan between ₹20,000 to ₹20 lakhs against your gold coins or ornaments.
  • SBI offers minimum and hassle-free process.
  • You are required to maintain a margin of 25%.
  • You can opt for an overdraft facility with an extended repayment period of 36 months.
  • The repayment period can be selected for a maximum period of 30 months.

Eligibility and Documentation

  • You must be over 21 years of age with a solid flow of regular income.
  • Bank employees, salaried individuals, businessmen, pensioners of central, state government and armed forces.
  • Proof of identity and address.
  • Application form and two passport size photographs.

Interest Rates

Type RTO CodeRTO Locations
Processing FeeGold jewellery, ornaments, gold coins with a BIS Hallmark0.50% of the loan amount with minimum of ₹250 and maximum of ₹500 plus applicable Service Tax
Gold jewellery, ornaments, gold coins without a BIS HallmarkRs.250 for loans upto Rs.25000 plus applicable Service Tax
Rs.0.50% of the loan amount with a minimum of Rs.500 plus service tax for loans up to Rs.25000
Rate of InterestDemand Loan2.00% above 1 year MCLR Floating, 11.15% per annum
Liquid Gold Loan Scheme - OD2.00% above 1 year MCLR Floating, 11.15% per annum

RBI Sovereign Gold Bond Scheme 2018

Sovereign Gold Bonds are government securities which are denominated in grams of gold. They allow customers to invest in gold with actually holding the physical metal. The bond is issued by the Reserve Bank of India on behalf of the Government of India.

Features of RBI Sovereign Gold Bond

  • The minimum subscription of gold is 2 grams while the maximum subscription is for one person in a single financial year is 500 grams.
  • The gold is of 999 grade purity as certified by the India Bullion and Jewelers Association Ltd.
  • The bond pays an assured interest rate of 2.75% and has a tenure of 8 years which can be redeemed early from the fifth year of the date of issue.
  • The gold is held in a dematerialized format.

Benefits of RBI Sovereign Gold Bond

  • The bonds can be used as a collateral for loan at any bank.
  • The bonds can be gifted as per the eligible criteria.
  • The bonds can be traded in the stock market.
  • There is no Tax Deducted at Source and nomination facility is also available.
  • You can buy 500 grams worth of gold bonds every year.

Eligibility

  • You must be a resident of India.
  • Individuals, trusts, universities, charitable institutions and HUFs. Any individual, single or joint, trust, universities, HUFs and charitable institutions can apply for a gold bond.
  • You can apply on behalf of your children if they are minors.
  • Payment can be made via cash/DD/cheque/electronic clearing service.

Documentation

There are different forms required for each purpose.

FormDescription
AApplication
BAcknowledgement Receipt
CHolding Certificate
DNomination
ECancellation of Nomination
FTransfer

SBI Gold Fund

This is an open ended fund of funds scheme which invests in the units of SBI Gold Exchange Traded Scheme (SBI GETS). You can gain returns without the need of purchasing the actual metal.

Features of SBI Gold Fund

  • The minimum investment amount is ₹5000 as the initial purchase and additional investments of ₹1000 can be made further.
  • You do not need a demat account for investing in a gold fund.
  • You have an option to invest via Systematic Investment Plan.
  • Liquidity - You can always redeem your investment at any given business working day.
  • There are only recurring expenses of the scheme. There are no charges for the following - maintenance, delivery, brokerage or transaction.
  • The gold bullion held in SBI GETS is of 995 grade purity.
  • You have an ad-on facility of systematic transfer plan and systematic withdrawal plan.
  • The minimum investment ranges from ₹100 to ₹1500 with a tenure of 6|12|60 months and 4|12 quarters.

Bullion Banking with SBI

Being the flag carrier of India’s banking industry, The State Bank of India has been officially nominated by the RBI to import gold into India for the purpose of selling it to jewellers and traders. Bullion includes includes Metal Gold Loan and Outright Sale of Gold for both - domestic and exporting. Under this scheme, bank provides working capital finance to jewellery manufacturers through Metal Gold Loans. Jewellers, in return, can take gold as a loan from the bank for manufacturing of jewellery and sell it in the domestic market or export it.

SecurityCash SecurityBank GauranteeCC Limit(A-& Above)Cash Credit & Other
IF CONSIGNMENT IMPORTED GOLD IS UTILIZED
A-IF Sanctioned mgl limit is less than 50 kg3.003.004.004.75
B-IF Sanctioned mgl limit is 50 kg or more2.852.853.754.50
IF GDS GOLD STOCK IS UTILIZED
A-IF Sanctioned mgl limit is less than 50 kg2.852.853.754.50
B-IF Sanctioned mgl limit is 50 kg or more2.702.703.504.25

The following table is as per the official website of SBI.

FAQs On SBI Gold Schemes

In how many denominations can I purchase gold from SBI?

The SBI gold coins are available in the following denominations - 2|4|5|8|10 grams and the rectangular bars are available in 20|50 grams.

How much is the withdrawal penalty under the SBI revamped gold deposit scheme?

The withdrawal penalty under this scheme depends upon the tenor of investment. It is applicable one year post deposit under STBD, 3 post 3 years under MTGD and 5 for LTGD.

Do you need a demat account for investing in SBI gold fund?

No, you do not need a demat account for investing in SBI gold fund.

What is the minimum amount of investment required for purchasing units of SBI Gold Exchange Traded Scheme (SBI GETS)?

The minimum investment amount is Rs. 5000 as the initial purchase and additional investments of Rs. 1000 can be made further under the SBI Gold Exchange Traded Scheme (SBI GETS).

What is the rate of interest for SBI Sovereign Gold Bond

The SBI Sovereign Gold Bond pays an assured interest rate of 2.75% and has a tenure of 8 years which can be redeemed early from the fifth year of the date of issue.

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