Understanding sovereign gold bonds
The Sovereign Gold Bonds scheme presents a golden opportunity for those looking to invest in gold without the physical possession's risks and costs. As a government security denominated in gold, it allows investors to earn regular interest and benefit from gold's price appreciation. Upon maturity, you receive the current market value of the gold, safeguarding your investment against price fluctuations. Moreover, the SGB scheme eliminates the concerns of purity and making charges associated with physical gold. Offered by the Government of India and tradable on exchanges, SGBs represent a safe, cost-effective, and convenient method of gold investment, making it an attractive alternative for securing your financial future with the sheen of gold.Read more
Things you need to know
SGBs allow investments starting from one gram, with a maximum limit of 4 kg for individuals and HUFs, and 20 kg for trusts per fiscal year
SGBs offer a fixed interest rate paid every six months, enhancing the investment's value alongside potential gold price increases
SGB pricing is linked to the current market rate of gold, ensuring investors receive transparent and fair pricing
Why invest in SGB
Hassle-free
Ownership of gold without any physical possession(No risks and no cost of storage)
Tradable
Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI
Use as collateral
Avail loans from banks against the security of these bonds
Eligibility criteria
The minimum investment that can be made in this bond is 1 gram. Each individual or HUF can hold a maximum of 4 kgs every year in such bonds. For trusts, charitable institutions, the maximum limit is 20 kgs
How to get started
Step 1
App Login
Launch the KBL Mobile Plus App and log in using your MPIN
Step 2
Apply for Sovereign Gold Bond
Go to "Investment and Insurance," select "Sovereign Gold Bond," and proceed after agreeing to the Terms and Conditions.
Step 3
Your requirements
Enter the number of units required in “Quantity in Grams”
Step 4
Enter your details and submit
Enter the nominee details, confirm the details in the next page Enter OTP and submit
You might also like
Atal Pension Yojana
- Paperless KYC process
- Flexible investment options
- Wide fund selection
SGB is a government security that represents ownership in gold without holding it physically. It's
issued by the Reserve Bank of India.
SGBs are safe, cost-efficient, and they eliminate risks associated with physical gold, such as storage
and purity concerns, while providing regular interest.
While the selling price may vary, the amount of gold you purchase does not decrease, ensuring you
retain the quantity for which you've paid.
You can purchase SGBs through the KBL Mobile Plus App or at any Karnataka Bank branch by fulfilling
the required documentation and eligibility criteria
No, upon maturity, the SGB is redeemed in cash equivalent to the prevailing market value of gold, not
in physical gold.
The benefits include earning a fixed interest rate over the term of the bond, the sovereign guarantee
of both the principal invested and the interest, tax-optimized returns, and the ability to use the bonds
as collateral for loans.
The minimum investment is 1 gram of gold, with a maximum limit of 4 kilograms per individual or
Hindu Undivided Family (HUF) per fiscal year, and 20 kilograms for trusts.
Yes, SGBs are tradable on stock exchanges within a fortnight of their issuance, as notified by the RBI,
providing liquidity to investors.
SGBs can be used as collateral for loans. The loan-to-value (LTV) ratio will be set by the individual
bank, as per the Reserve Bank of India's guidelines.
Investors in SGBs can benefit from tax exemptions, such as no capital gains tax if the bond is held
until maturity, and the interest earned is also exempt from tax under specific conditions.
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, offering a safe and alternative way to invest in gold without the hassles of physical storage. They not only track the price of gold but also pay a fixed interest, combining the stability of gold investment with regular income. SGBs are considered highly secure as they are backed by the government. They are also tax-efficient, with no capital gains tax if held until maturity. Additionally, SGBs can be used as collateral for loans, making them a versatile investment option. Invest in the future with the sovereign gold bond scheme, a secure way to own gold without the physical storage concerns. Our sovereign gold bond offers are a perfect choice for those looking into gold bond investment as they carry the dual benefits of safety and potential capital gain. The SGB gold bond is not only a solid investment but also a hedge against inflation.
SGBs offer a fixed interest rate, typically announced by the government at the time of issuance. This interest is paid semi-annually on the initial amount of investment and is separate from the potential capital gains linked to gold price movements. It's important to understand that while the interest income provides a regular return, the principal value of the bond will fluctuate with market gold prices. At maturity, the redemption price is based on the then-prevailing price of gold, providing the opportunity for capital appreciation.
