State Bank of India has a number of schemes related to gold investments, purchase and loans. Customers have the opportunity to buy gold coins from authorised SBI branches. Investors can also make investments in Sovereign Gold Bonds and Gold Mutual Fund schemes that have systematic transfer plans and systematic investment plan options. In times of financial need, customers can pledge gold as security to avail a personal loan.
Retail Sale of Gold Coins
Gold coins are available at authorised SBI branches where customers can purchase different denominations starting from 2 grams up to 50 grams. SBI assures purity and good prices based on the daily price of gold.
- The gold coins available at SBI are sold at very competitive rates.
- The coins come in special tamper-proof packaging.
- The coins or ingots are 999.9 pure with an Assay certification.
- Round coins are available in denominations of 2 grams, 4 grams, 5 grams, 8 grams and 10 grams.
- Rectangle bars are available in 20 grams and 50 grams.
- Any individual or organisation is eligible to buy these coins.
- The prices of the gold coins is determined based on the daily price of gold exclusive of sales tax and value added tax.
The RBI has imposed a number of restrictions on the import of gold, therefore, SBI will not be minting or supplying fresh coins. The existing stock is available at select branches, however, the denomination of your choice might not be available.
Revamped Gold Deposit Scheme (R- GDS)
This scheme is a fixed deposit for gold. Customers can use these deposits to store their gold safely and earn interest on it. The deposits are accepted by SBI on behalf of the Central Government. The purpose of this scheme is to enable the government to mobilize idle gold in the country and make it productive. This also provides customers the opportunity to use their gold to earn interest.
- The minimum quantity for the deposit is 30 grams. There has been no maximum limit set.
- Short Term Bank Deposit (STBD)
- There is a short term bank deposit available between 1 year and 3 years.
- The deposit can be redeemed in cash or gold.
- Medium and Long Term Government Deposit (MLTGD)
- Medium term deposits are available for tenures between 5 years and 7 years.
- Long term deposits are available for tenures between 12 years to 15 years.
- The redemption of the deposit will be in the form of cash in INR that is equal to the value of the gold as per the prevailing rate on the maturity date.
- Gold bars, coins and jewellery will be accepted in the form of scrap.
- A Gold Deposit Certificate will be issued by the Nodal branch.
- Nomination is available.
- STDBs can be withdrawn prematurely after 1 year with a penalty.
- MTGD can be withdrawn prematurely after 3 years with a penalty.
- LTGD can be withdrawn prematurely after 5 years with a penalty.
- Individuals can apply singly or jointly
- Partnership firms
- Trusts including Exchange Traded Funds and Mutual Funds registered under SEBI (Mutual Fund)
- Application Form
- Identification Proof
- Address Proof
- Inventory Form
Interest rates differ between various tenures. For STBDs, the interest is paid on a cumulative basis upon maturity. Customers can also opt for non-cumulative payouts where interest will be paid every year on 31st March. For interest payable on MLTGDs, the interest is calculated in INR based on the value of gold at the time the deposit was made.
|STBD||1 year||0.50% p.a.|
|2 years||0.55% p.a.|
|3 years||0.60% p.a.|
|MLTGD||5-7 years||2.25% p.a.|
|12-15 years||2.50% p.a.|
SBI Personal Gold Loan
State Bank of India offers a loan to customers to secure finance that they need by pledging gold ornaments or coins. Anyone with a steady source of income is eligible to apply for the personal loan. The loan can be used for purposes such as medical treatment, educational expenses, marriage, travel or any general purpose except for speculative activities.
- Customers can avail of a minimum of Rs.20,000 up to Rs.20 lakhs.
- The security accepted is gold coins sold by banks and gold ornaments.
- The loan requires minimum paper work.
- Interest rates charged on the loan are low.
- A margin of 25% is required.
- The loan can be repaid over a maximum period of 30 months for demand loans. For overdraft facility, the repayment period is extended to 36 months.
- Applicants must be at least 21 years old.
- Applicants must have a steady source of income such as salaried employees, businessmen and professional.
- Bank employees are eligible.
- Pensioners of Central and State Government, and Armed Forces.
- Proof of Identity
- Proof of Address
- Application Form for Gold Loans
- Two copies of photograph of the borrower
Interest Rate and Charges
Interest rate on the personal loan is applicable as per the prevailing MCLR for a 1-year period. The interest rate is calculated on a daily reducing balance at monthly intervals. The reset period for the interest rate is 1 year. Upon revision of the interest rate, the bank has the option to increase or decrease the EMI amount, or extend the repayment period or both to cover any additional interest.
|Processing Fees||BIS Hallmarked Jewellery or Ornaments and specially minted Gold Coins sold by Banks||0.50% of the Loan Amount subject to a minimum of Rs.250 and a maximum of Rs.500 + applicable Service Tax|
|For Non Hallmarked Jewellery or Ornaments||
|Interest Rate||Demand Loan||2.00% above 1 year MCLR Floating, currently 11.15% p.a|
|Liquid Gold Loan Scheme - OD||2.00% above 1 year MCLR Floating, currently 11.15% p.a|
RBI Sovereign Gold Bond Scheme 2015
Sovereign Gold Bonds are government securities that allow customers to invest in gold without holding the physical gold. The SGBs are issued by the RBI on behalf of the Government of India. Investors can pay the issue price of the bond which is redeemable in cash on maturity.
- The third tranche of gold bonds were open for subscription between 8th March and 14th March 2016.
- The minimum subscription is 2 grams. The maximum subscription allowed per person in one fiscal year is 500 grams.
- The price per unit was set at Rs.2,916. Prices of the SGBs are determined based on the simple average closing price of gold. The gold is of 999 purity of the previous week as published by the Jewelers Association Ltd (IBJA) and the India Bullion.
- Investors will receive a holding certificate which can be converted into demat form.
- The bonds have a tenure of 8 years, but can be redeemed prematurely from the 5th year of the date of issue of the bonds.
- The bonds bear an interest rate of 2.75% p.a. on the initial investment amount.
- Interest is payable bi-annually and is credited to the bank account of the investor.
- Interest earned on the bonds is subject to tax as per the provisions of the Income Tax Act 1961 and capital gain tax.
- Tax is not deducted at source.
- Nomination facility is available.
- The bonds can be used as collateral for loan applications. Bonds are accepted by banks, Non-Banking Financial Companies (NBFC) and financial institutions.
- The bonds can be transferred or gifted provided the person fulfils the eligibility criteria.
- An investor can buy 500 grams worth in bonds every fiscal year.
- The bonds can be held in a demat account.
- The bonds can be redeemed in part holdings in multiples of 1 gram.
- The bonds are tradable on the stock exchanges when the RBI notifies the public.
- Applicants must be residents of India.
- Individuals, trusts, universities, charitable institutions and HUFs.
- Joint application is permitted.
- Parents and legal guardians can apply on behalf of minors.
- It is mandatory to provide bank account details to enable the payment of interest and the principal.
- Payment for the bonds can be made in cash up to Rs.20,000, or can be paid via DD, cheque or electronic clearing service.
There are 6 forms available under the SGB scheme. Each form has a different purpose and must be used correctly.
|Purpose||Application Form Required|
|Acknowledgement receipt||Form B|
|Holding certificate||Form C|
|Cancellation of Nomination||Form E|
SBI Gold Fund
The SBI Gold Fund is an open ended fund of funds scheme. The fund invests in units of SBI Gold Exchange Traded Scheme (SBI GETS). The objective of this scheme is to provide returns that corresponds closely to SBI GETS. Investors can reap returns from investing in gold without actually purchasing the metal or having a demat account.
- The minimum investment for initial purchase is Rs.5,000 and in multiples of Re.1 thereafter.
- Additional investments can be made by purchasing a minimum of Rs.1,000 and in multiples of Re.1 thereafter.
- Invest in the gold fund without opening a demat account.
- The gold fund is a Systematic Investment Plan (SIP) which is a long-term disciplined investment wherein customers can invest regularly.
- Investors have a liquid investment which can be redeem on all business days.
- There are no maintenance charges, delivery or brokerage charge, transaction expenses, and so on, associated with the investment. There are only recurring expenses of the scheme.
- The investment is a non-equity product which allows an investor to make claims on long-term capital gains after a 1-year period of investment.
- SBI Gold Fund assures quality, purity and security. All gold bullion held in SBI GETS is 995 fine.
- This plan comes with an add-on facility wherein investors can make use of other plans such as the systematic transfer plan, systematic investment plan and systematic withdrawal plan.
Facilities to Invest in the SBI Gold Fund
Gold Accumulation Facility - This facility is available through two plans:
- Systematic Investment Plan (SIP)
- Systematic Transfer Plan (STP from other schemes of SBI Mutual Funds)
Investors can accumulate the amount of their choice at regular intervals.
Systematic Investment Plan - Invest in the Gold Fund at regular intervals. The minimum requirement is 1 unit of SBI GETS capped at a maximum of Rs.1 lakh.
Minimum Investment Minimum Tenure Rs.100 per month 60 months Rs.500 per month 12 months Rs.1,000 per month 6 months Rs.500 per month 12 quarters Rs.1,500 per month 4 quarters
Stock exchange platform
State Bank of India has established a banking relationship of trust with the nation and now its gold investment schemes provide reliable avenues for customers to invest their money. Through SBI, customers can avail of the finance they need by pledging their gold.
Also Know About the other Gold Schemes by Banks
|Andhra Bank Gold Schemes||Axis Bank Gold Schemes||HDFC Gold Schemes|
|ICICI Gold Schemes||IDBI Bank Gold Schemes||Indian Bank Gold Schemes|
|PNB Gold Schemes|