Upcoming SGB Subscription Date for Sovereign Gold Bonds?
The next Sovereign Gold Bond or SGB subscription period is February 12–16, 2024. The final tranche of the 2023-24 series, SGB 2023-24 Series IV, will open for subscription on February 12, 2024, and will close on February 16, 2024. The bonds will be issued on February 21, 2024.
- 4 kg for individuals
- 4 kg for HUFs
- 20 kg for trusts and similar businesses
SGBs offer interest at 2.5 per cent per annum, payable semi-annually. Interest income is taxed according to the investor’s tax bracket. However, if the SGBs are held until maturity, i.e. 8 years, the final amount is exempted from taxation. TDS is not applicable.
Can we get loan against SGB or Sovereign Gold Bond?
Yes, you can use Sovereign Gold Bonds (SGBs) as collateral for loans from banks, financial institutions, and non-banking financial companies (NBFCs).
- Medical expenses
- Margin money for home loans, car loans, education loans, or travel plans
The loan-to-value (LTV) ratio for SBI’s SGB loan is set equal to the ordinary gold loan mandated by the Reserve Bank. SBI charges a processing fee of 0.50% of the loan amount plus applicable service tax or Rs 500 plus applicable tax, whichever is higher.
Indian Bank also offers loans against SGBs. Customers can only approach for loans against SGBs through the branch through which the SGB was obtained.
Once the loan is closed, the bonds are transferred to your demat account according to your instructions.
This is not professional financial advice. Consulting a financial advisor about your particular circumstances is best.
