Loan against SGBs permitted as collateral with lien and regulatory loan-to-value limits, subject to lender approval. Sovereign Gold Bonds may be used as collateral security for loans by marking a lien on the Bonds; the loan-to-value ratio applicable to ordinary gold ... Summary
Loan against SGBs permitted as collateral with lien and regulatory loan-to-value limits, subject to lender approval.
Sovereign Gold Bonds may be used as collateral security for loans by marking a lien on the Bonds; the loan-to-value ratio applicable to ordinary gold loans under prevailing regulatory practice applies, and granting a loan against SGBs is subject to the discretion of the lending bank or financing agency, not an automatic right of the bondholder.
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