The gold deposit scheme of SBI has been quite popular in the market because of its amazing features and services. The gold deposit scheme of SBI has been introduced under the provision of the Indian government. In this article, we have mentioned all the things you should know before depositing your gold asset to the bank to get complete security as well as benefits. Below, you will discuss the SBI gold deposit scheme details properly.
Table of Contents
SBI Gold Deposit Scheme
The state bank of India provides gold deposit services to its customers. This is called SBI revamped gold deposit scheme (R- GDS) which is a fixed deposit of gold scheme. Under this scheme, customers are allowed to deposit their idle gold in the bank account and can earn significant benefits in form of interests, complete protection and security of their assets, and much more.
Features and Benefits
With SBI revamped gold deposit scheme (R- GDS), you get plenty of amazing features and benefits. With your accessible deposit in the SBI fixed deposit, you get complete protection of your asset, yearly benefits in form of interest rates, and many more. Below, we have mentioned some of the major features and benefits of this scheme of the State Bank of India.
1. This scheme is available for all the citizens of the country.
2. This scheme from SBI offers three types of deposits under GMS namely, Short term deposit, Medium-term gold deposit, and long-term gold deposit.
3. SBI bank gold deposit scheme provides you flexible tenure for different deposit schemes. For STGD, you get a loan repayment tenor from 1 to 3 years. For MTGD, you will have to repay the loan amount within 5-7 years and in the LTGD, the bank offers you flexible loan repayment tenor from 12-15 years.
4. The applicants are allowed to deposit the minimum required amount for the scheme in the form of bars, coins, and jewelry of gold weighing a minimum of 10 grams.
5. You can deposit as much amount of gold in the bank as you want and avail yourself of higher loan amount benefits.
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Eligibility Criteria
Resident Indians of the following categories are eligible to deposit in this scheme:
1. Individuals, singly or jointly.
2. Proprietorship and Partnership firms.
3. Hindu Undivided Families (HUFs).
4. Central Government
5. State Government
6. Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI Regulations.
7. Charitable institutions.
8. Any other entity owned by Central Government or State Government.
Note: Gold is accepted in the form of raw gold i.e. Gold bars, coins, jewelry excluding stones and other metals. Depositors need to submit Application Form, Identification Proof, Address Proof, and Inventory Form.
List of Authorized SBI Branches
Click here to get the list of authorized branches.
Repayment
State Bank of India offers its customers many features in this gold scheme. One major feature also includes flexible and accessible repayment tenure. Below, we have mentioned the major modes of repayment allowed by SBI in which you can repay the loan amount.
Short Term Bank Deposit (STBD): In STBD gold deposit, the applicants are allowed to repay the loan amount in the form of cash or the form of gold equivalent to the final loan amount. The loan amount should be repaid within the date of maturity.
Medium Term Government Deposit (MTGD) and Long Term Government Deposit (LTGD): You can get your deposited gold back by submitting another gold asset equivalent to that gold asset or in rupees. The value of gold will be calculated as per the current value of gold at that particular time. In case of redemption in gold, 0.20% administrative charges will be levied.
Pre-mature Payment
The applicant who has deposited in this scheme can go for a pre-mature payment of their gold loan. Below, we have provided you with detailed information on the pre-mature payments in this scheme of SBI for different deposit schemes.
STBD: In the STBD scheme, the applicants are allowed to make a pre-mature payment of their gold loan after 1 year of the lock-in period along with a penalty on the applicable interest rate.
LTGD: In a long-term scheme, the applicants can withdraw their gold asset from the bank by completing a pre-mature payment after 5 years. In such cases, the applicant must pay the applicable penalty on the interest rate.
MTGD: If you have submitted your gold in the medium-term gold deposit, you can withdraw it after 3 years by paying a penalty on the interest rate.
Issue of the Gold Deposit Certificate
When you deposit your gold asset to the SBI bank, you will be provided with a gold deposit certificate.
1. Your gold deposit certificate is issued by the Nodal branch.
2. The certificate will only be issued for pure gold content.
3. Nodal branch will send the gold deposit certificate to the depositor.
SBI Gold Deposit Scheme Interest Rate
| STGD | MTGD | LTGD |
| 1 year: 0.5% per annum | 2.25% per annum | 2.50% per annum |
| Less than 1 year and up to 2 years: 0.55% per annum | 2.25% per annum | 2.50% per annum |
| Less than 2 years and up to 3 years: 0.60% per annum | 2.25% per annum | 2.50% per annum |
The interest rate on your gold deposits in SBI is calculated by the SBI gold deposit scheme interest rate calculator.
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Frequently Asked Questions
1. What is gold deposit scheme?
The gold deposit is a kind of fixed deposit in which you can deposit your gold asset for its complete security as well as to earn some profit by the interest rates offered.
2. What is gold monetisation scheme?
The gold monetization scheme is introduced to mobilize the gold kept in households and institutions of the country for productive purposes. It also focuses on reducing the country’s reliance on gold imports in the future.
3. What are the different types of deposits in the gold deposit scheme in SBI?
While you deposit your gold asset to avail of loan benefits against it in the SBI bank, you will be provided with three sub-deposit categories. The three subcategories of this scheme are short-term gold deposit, medium-term gold deposit, and long-term gold deposit.
Final Thoughts
Despite so many gold deposit schemes available in the country to mobilize the use of gold held in households or institutions, taking loans against gold still seems to be hesitating for a large population of the country. The government has been trying to inform people about gold loans and their benefits for years but hasn’t been completely successful yet. In this article, we have come up with the same motive to inform our readers about gold loans, especially the gold deposit scheme of SBI that offers you complete security of your gold asset along with offering you fair benefits of interest rates.
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