Gold has always had an allure that most of us have found hard to resist. Indians’ love for gold has been well documented, from our extravagant wedding jewellery to being a safeguard against times of adversity.
While the appetite for gold has not reduced, the surging price of the precious metal has resulted in many having to put off its purchase. However, that need not be a concern anymore, thanks to ICICI Bank’s gold schemes.
The bank has a series of schemes, from investment options in the metal to recurring deposit accounts set up to save up for gold purchases.
Given below are the series of options that can be availed through ICICI Bank.
ICICI Bank Gold Monetization Scheme
This term deposit offering from ICICI Bank enables individuals to earn interest from their gold. Under this scheme, individuals can deposit their gold ornaments, bars, coins etc. with the bank and stand to earn interest on the same.
ICICI Bank Gold Monetization Scheme Features
- Resident Indians can deposit gold in any form, which will be measured in grams with 995 purity for a set period of time. Investors will receive interest on their deposits based on rates as decided by the Government of India and RBI.
- The scheme, open to ICICI Bank account holders (either Savings or Current Account), requires a minimum of 30 grams of gold to be deposited for a minimum period of 3 years.
- Premature withdrawal would result in penal interest, and deposits can be maintained for a maximum of 15 years at a time.
- Interest will be paid out annually in Indian Rupees based on the gold rate at the time the deposit was opened.
ICICI Bank Gold Monetization Scheme Benefits:
- Allows investors to earn from their gold, while also ensuring the gold is secure.
- No income or capital gains tax payable even if the price of gold appreciates during the tenure of the deposit, making it a tax-free way to earn.
The Gold Monetization Scheme deposits can be of two types, as mentioned below:
|Features||Long Term Deposit||Medium Term Deposit||Short Term Deposit|
|Minimum amount||30 grams||30 grams||30 grams|
|Maximum amount||No limit||No limit||No limit|
|Tenure||12-15 years||5-7 years||1-3 years|
|Interest rate||2.50% p.a.||2.25% p.a.||N.A.|
Please note- the interest rates mentioned above are subject to change from time to time.
ICICI Bank Gold Loans
With the ICICI Bank gold loans, bank customers will be able to take out a loan against their gold. As per this scheme, the gold would serve as a security against repayment of the loan amount.
ICICI Bank Gold Loan Features:
- Instant gold loan against gold at any ICICI Bank branch.
- Up to Rs.1 crore may be provided as loan.
ICICI Bank Gold Loan Benefits:
- Ease of getting a loan.
- You need not worry about EMIs.
- Pledged gold kept in a secure facility until repayment.
ICICI Sovereign Gold Bonds
The Government of India issues sovereign gold bonds from time to time. These are government-issued securities that can be used as a substitute for physical gold, where all transactions are carried out in cash. These bonds are linked to the gold price and are issued through designated banks, post offices and agents. ICICI Bank is one such bank authorised to issue these bonds.
ICICI Sovereign Gold Bond Features:
- These bonds are issued for a minimum tenor of 8 years, with buyout options in the 5th, 6 or 7th year.
- The bonds issued come with a sovereign guarantee on the interest as well as the capital amount.
ICICI Sovereign Gold Bond Benefits:
- The bonds can be traded on the stock exchanges if the investor wishes for an early exit.
- The bonds, being issued by the government, carry a guarantee and assured returns.
- The bonds can be used as collateral when applying for a loan.
ICICI Bank has a number of options available for investors who wish to make investments in gold or build their portfolio through investing in gold and gold-based assets. The various schemes have been tailored to suit every budget, making it possible for everyone to build their wealth through gold.
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FAQs on ICICI Gold Schemes
- What are different methods by which the gold loan can be repaid?
The gold loan can be repaid via Funds Transfer, DD, Cheque, or Cash.
- In case I avail a gold loan, can part-payments be made?
Yes, part-payment facility is offered under the gold loan scheme offered by ICICI Bank.
- Will ICICI Bank levy any penalty in case the interest rate is not paid by the due date?
Yes, ICICI Bank will levy a penalty in case the interest rate is not paid by the due date.
- Will TDS be applicable in case I invest in Sovereign Gold Bonds offered by ICICI Bank?
No, TDS will not be applicable in case you invest in Sovereign Gold Bonds offered by ICICI Bank.
- Are minors eligible to invest in Sovereign Gold Bonds offered by ICICI Bank?
Yes, minors are eligible to invest in Sovereign Gold Bonds offered by ICICI Bank.
- Will I need to submit proof of address in order to avail a gold loan from ICICI Bank?
Yes, you need to submit proof of address in order to avail a gold loan from ICICI Bank.
- Will I need to submit proof of identity in order to avail a gold loan from ICICI Bank?
Yes, you need to submit proof of identity in order to avail a gold loan from ICICI Bank.