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Can I use SGB securities as collateral for loans?

Yes, these securities are eligible to use as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to value ratio will be the same as applicable to ordinary gold loan mandated by the RBI from time to time.

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1. Samir Bhirud Dec 04 2019 01:27:15 PM Reply
Can I use SGB for pledging and margin at demat account. If yes , which broker provide this facility and what r the different interest rates for the same with different brokers ..

Thanks
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2.1. Vinay Jain Dec 04 2019 08:22:53 PM
The SGB pledging is not allowed at this time. But you can use SGB as collateral from loans from banks, financial institutions, and NBFC. The loan value ratio will be the same as physical gold loan prescribed by RBI.