Category: Personal Finance

Commercial Segment Set To Benefit Further Through REITs

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Investment

oi-Sunil Fernandes

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Recently, the Budget proposed easing of InvITs/REITs, which will help in getting new REITs and attracting fresh investments in the real estate sector. REIT is a recent phenomenon in India as opposed to the REITs in other parts of the world where they have been present for over four decades in some cases.

It is to be seen what kind of easing government will carry out in InvITs/REITs. Hopefully, there will be changes in the mandated time gap between two institutional placements, and changes will be made with respect to pricing of units by REITs and InvITs for preferential issues.

REITs are products such as mutual funds in which investors can own income-generating assets that they otherwise cannot afford to invest in, such as commercial buildings and office spaces. SEBI regulations mandate REITs to invest 80 per cent of its assets in assets that are created and produce profits.

At present, REITs are only permitted to invest in commercial real estate and office space. They need 90% of the rental income to be paid as dividends. REITs also earn interest income from special-purpose vehicles (SPVs) that hold assets through them. They lend money to SPVs and distribute among unitholders the interest income. Investors are now benefiting from the price appreciation of REIT’s underlying real estate. Compared to owning a physical commercial asset, the minimum investment required is low. A minimum of Rs 50,000 or a lot of 100 units can be invested in REITs, whichever is of higher value.

For someone looking for exposure in commercial real estate and able to stay invested for long, REITs are a good product. When an investor has no real estate in their portfolio and needs dividend income, REIT is a good way to expose himself to real estate. A REIT should be assessed by an investor on factors such as how well the micro market in which the assets are held has done, how rental growth has been, who are the tenants, and what kind of lock-in they have. Therefore, if you intend to invest in a REIT, assess correctly and stay put for the long term.

Commercial Segment Set To Benefit Further Through REITs

In view of the pandemic, real estate expects that there will be relaxations for raising of equity capital. Having said that the relaxations will be good for the market, and people will see more REITs moving in. Recently, one more REIT has entered the Indian real estate space, which shows that the prospects are good. For investors, the Brookfield Real Estate Investment Trust (REIT) IPO is available for subscription. This is the third Reit to be listed on Indian stock exchanges after the successful listing of two REITs, Embassy Office Parks and Mindspace Business Parks.

We have seen that interest of people towards commercial properties has seen an upsurge, especially after the global pandemic as they want to have an extra source of income. It is good news for the entire real estate sector as it has now been proven that real estate has emerged as one of the safest investment options; with the easing of InvITs/REITs, the sector is set to benefit further.

By Ankur Bhatiani, Director, Urbainia Spaces



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Commercial Segment Set To Benefit Further Through REITs

Personal Finance

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Investment

oi-Sunil Fernandes

|

Recently, the Budget proposed easing of InvITs/REITs, which will help in getting new REITs and attracting fresh investments in the real estate sector. REIT is a recent phenomenon in India as opposed to the REITs in other parts of the world where they have been present for over four decades in some cases.

It is to be seen what kind of easing government will carry out in InvITs/REITs. Hopefully, there will be changes in the mandated time gap between two institutional placements, and changes will be made with respect to pricing of units by REITs and InvITs for preferential issues.

REITs are products such as mutual funds in which investors can own income-generating assets that they otherwise cannot afford to invest in, such as commercial buildings and office spaces. SEBI regulations mandate REITs to invest 80 per cent of its assets in assets that are created and produce profits.

At present, REITs are only permitted to invest in commercial real estate and office space. They need 90% of the rental income to be paid as dividends. REITs also earn interest income from special-purpose vehicles (SPVs) that hold assets through them. They lend money to SPVs and distribute among unitholders the interest income. Investors are now benefiting from the price appreciation of REIT’s underlying real estate. Compared to owning a physical commercial asset, the minimum investment required is low. A minimum of Rs 50,000 or a lot of 100 units can be invested in REITs, whichever is of higher value.

For someone looking for exposure in commercial real estate and able to stay invested for long, REITs are a good product. When an investor has no real estate in their portfolio and needs dividend income, REIT is a good way to expose himself to real estate. A REIT should be assessed by an investor on factors such as how well the micro market in which the assets are held has done, how rental growth has been, who are the tenants, and what kind of lock-in they have. Therefore, if you intend to invest in a REIT, assess correctly and stay put for the long term.

Commercial Segment Set To Benefit Further Through REITs

In view of the pandemic, real estate expects that there will be relaxations for raising of equity capital. Having said that the relaxations will be good for the market, and people will see more REITs moving in. Recently, one more REIT has entered the Indian real estate space, which shows that the prospects are good. For investors, the Brookfield Real Estate Investment Trust (REIT) IPO is available for subscription. This is the third Reit to be listed on Indian stock exchanges after the successful listing of two REITs, Embassy Office Parks and Mindspace Business Parks.

We have seen that interest of people towards commercial properties has seen an upsurge, especially after the global pandemic as they want to have an extra source of income. It is good news for the entire real estate sector as it has now been proven that real estate has emerged as one of the safest investment options; with the easing of InvITs/REITs, the sector is set to benefit further.

By Ankur Bhatiani, Director, Urbainia Spaces



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ULIP Taxation Rules As Per Budget 2021: Know All

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Investment

oi-Roshni Agarwal

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ULIP or unit linked insurance plans are meant to serve two financial goals i.e. insurance and wealth creation. Premium for the policy is segregated and part is invested into the fund created as a result of a pooling of funds from various investors and other is put into for the purpose of mortality charges, allocation charges and fund management charges. Now these funds are put into debt and equity funds and returns vary based on the performance of the fund.

ULIP Taxation Rules As Per Budget 2021: Know All

ULIP Taxation Rules As Per Budget 2021: Know All

Other features of a ULIP plan

1. Premium paid towards the ULIP plan can be claimed for deduction under Section 80C up to the limit of Rs. 1.5 lakh in a financial year.

2. Maturity proceeds are also tax free

3. Investors can choose between debt and equity funds based on their risk appetite and financial goals.

4. ULIP plans come with a lock in of 5 years. But during this time, there is a provision which allows switching between funds and on the capital gains made on them arises no tax implication. Further there are no STT or other such levies.

How ULIP taxation changes as per proposals made in Budget 2021?

ULIP proceeds were tax free until now, even the amount payable upon insured’s death

Until now, proceeds from ULIP were tax free as long as the premium for any year did not exceeded 10% of the Sum assured value under the Section 10(10D). Also, any amount payable on death of the insured under the ULIP plan was also fully tax free regardless of the premium amount paid. But as in the case of mutual funds, any gains over Rs. 1 lakh attracted 10% long term capital gains implication, there was sought parity between the two products i.e. ULIPs and mutual funds that are both considered investment products.

With tax advantage on ULIPs in comparison to mutual funds, many HNIs and high income earners put their money in these products to get tax free returns.

What changes for ULIPs as per Budget 2021?

Now to bring in parity between mutual funds and ULIPs, the Budget 2021 amended the Income Tax Act, 1961 and accordingly any gains from a ULIP policy shall be treated as capital gains in case the premium paid for any year exceeds Rs 2.5 lakhs. Such policies will now be taxed at 10 per cent at maturity.

The change will be enforced for all ULIP policies issued after February 1, 2021. So, those already running their ULIP policies with a premium of over Rs. 2.5 lakh in a year shall not be affected. Meaning to say such investors continue to get tax exemption in respect of proceeds even if their premium is on a higher side.

Besides STT or securities transaction tax will also apply when redeeming the ULIP policy. Also, in case an investors holds different policies, then aggregated of the premium shall be considered for deciding the taxation aspect.

Thus, ULIPs will now be treated at par with equity oriented funds in section 112 A and provisions of sections 111A and 112A will apply on the sale/redemption of such ULIPs.

How should investors invest in ULIP plans post its treatment at par with equity funds?

Now to continue enjoying the tax exemption on ULIP proceeds (together with the dual advantage of insurance and investment), investors can stick with low value ULIPs that come with low premium i.e. up to Rs. 2.5 lakhs. Also, you need to select the insurer with good fund managers and offering a solid track record of long term returns.

But for novice investors, they shall be better off by segregating their investment and insurance plans.

GoodReturns.in



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ULIP Taxation Rules As Per Budget 2021: Know All

Personal Finance

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Read More/Less


Investment

oi-Roshni Agarwal

|

ULIP or unit linked insurance plans are meant to serve two financial goals i.e. insurance and wealth creation. Premium for the policy is segregated and part is invested into the fund created as a result of a pooling of funds from various investors and other is put into for the purpose of mortality charges, allocation charges and fund management charges. Now these funds are put into debt and equity funds and returns vary based on the performance of the fund.

ULIP Taxation Rules As Per Budget 2021: Know All

ULIP Taxation Rules As Per Budget 2021: Know All

Other features of a ULIP plan

1. Premium paid towards the ULIP plan can be claimed for deduction under Section 80C up to the limit of Rs. 1.5 lakh in a financial year.

2. Maturity proceeds are also tax free

3. Investors can choose between debt and equity funds based on their risk appetite and financial goals.

4. ULIP plans come with a lock in of 5 years. But during this time, there is a provision which allows switching between funds and on the capital gains made on them arises no tax implication. Further there are no STT or other such levies.

How ULIP taxation changes as per proposals made in Budget 2021?

ULIP proceeds were tax free until now, even the amount payable upon insured’s death

Until now, proceeds from ULIP were tax free as long as the premium for any year did not exceeded 10% of the Sum assured value under the Section 10(10D). Also, any amount payable on death of the insured under the ULIP plan was also fully tax free regardless of the premium amount paid. But as in the case of mutual funds, any gains over Rs. 1 lakh attracted 10% long term capital gains implication, there was sought parity between the two products i.e. ULIPs and mutual funds that are both considered investment products.

With tax advantage on ULIPs in comparison to mutual funds, many HNIs and high income earners put their money in these products to get tax free returns.

What changes for ULIPs as per Budget 2021?

Now to bring in parity between mutual funds and ULIPs, the Budget 2021 amended the Income Tax Act, 1961 and accordingly any gains from a ULIP policy shall be treated as capital gains in case the premium paid for any year exceeds Rs 2.5 lakhs. Such policies will now be taxed at 10 per cent at maturity.

The change will be enforced for all ULIP policies issued after February 1, 2021. So, those already running their ULIP policies with a premium of over Rs. 2.5 lakh in a year shall not be affected. Meaning to say such investors continue to get tax exemption in respect of proceeds even if their premium is on a higher side.

Besides STT or securities transaction tax will also apply when redeeming the ULIP policy. Also, in case an investors holds different policies, then aggregated of the premium shall be considered for deciding the taxation aspect.

Thus, ULIPs will now be treated at par with equity oriented funds in section 112 A and provisions of sections 111A and 112A will apply on the sale/redemption of such ULIPs.

How should investors invest in ULIP plans post its treatment at par with equity funds?

Now to continue enjoying the tax exemption on ULIP proceeds (together with the dual advantage of insurance and investment), investors can stick with low value ULIPs that come with low premium i.e. up to Rs. 2.5 lakhs. Also, you need to select the insurer with good fund managers and offering a solid track record of long term returns.

But for novice investors, they shall be better off by segregating their investment and insurance plans.

GoodReturns.in



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Banks’ provisioning in Q3 rises 10% sequentially

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The rating agency has predicted less likelihood of a sharp deterioration of asset quality at banks.

Provisioning for banks during the December quarter (Q3FY21) is up nearly 10% sequentially, shows data from 18 banks. Eighteen banks have provided Rs 52,403 crore against loans during the December quarter, compared to Rs 47,827 in September 2020. While 11 private sector lenders made provisions of Rs 18,798 crore during the quarter, seven public sector lenders provided almost double of that at Rs 33,605 crore. Despite rise in provisions, the aggregate net profit of 18 lenders stood at Rs 28,604 crore, up 6% sequentially.

The lenders had made extra provisions during the quarter on account of loans that were not classified as non-performing assets (NPAs) due to Supreme Court’s direction. The apex court had earlier directed lenders not to declare any fresh NPAs from August 31, 2020. The lenders, therefore, declared bad loans on a proforma basis by making adequate provisions for the same. Proforma NPAs of 18 lenders has crossed Rs 7 lakh crore during the December quarter.

In a report on asset quality of lenders, Moody’s said that while gross non-performing loan (NPL) ratios remained high at most banks, net NPL ratios were much lower because of the buildup of significant provisions against legacy bad loans. Moody’s said “The gross NPL ratios of 5 banks declined by an average of about 100 basis point (bps) as of the end of 2020 from a year earlier, even including loans that have become delinquent since the end of August 2020 but are not formally classified as NPLs because of a pending case in the Supreme Court.”

The rating agency has predicted less likelihood of a sharp deterioration of asset quality at banks. “We expect the Indian economy to recover in 2021, and this reduces the likelihood of a sharp deterioration of asset quality at the banks,” Moody’s said. However, they will continue to face capital shortages as their profitability remains weak, it further added.

The financial stability report of Reserve Bank of India (RBI) had earlier stated that banks’ GNPAs may rise sharply to 13.5% by September 2021, and escalate to 14.8%under the severe stress scenario.

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ELSS vs ULIP: Which suits you best

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Tick-tock, tick-tock — rushing to do your last-minute tax-savings before March 31. Two instruments always discussed during this time are equity-linked savings schemes (ELSS – tax-saving mutual funds) and unit-linked insurance plans (ULIPs – market-linked insurance plans). The Budget has put the spotlight on ULIPs with a key tax change. In this light, we re-visit the ELSS vs ULIP argument.

Construct

An ELSS invests at least 80 per cent of its assets in equity and equity-related instruments. Investments in an ELSS qualify for tax deductions under Section 80C of the Income Tax Act within the overall annual limit of ₹1.5 lakh. As a measure of popularity, ELSS, with 1.23 crore folios, is the largest equity fund category in the MF industry. The average investor account value, when it comes to ELSS, is ₹95,000.

On the other hand, ULIPs are a combination of insurance and investment offered by life insurers. ULIP premiums are also eligible for tax deduction under Section 80C. In FY20, ULIPs formed 18 per cent of the life insurance industry product mix, but constituted 44 per cent for the private sector. For top insurers, the average retail annual premium equivalent per ULIP was about ₹1.8 lakh in FY20, indicating their popularity among high-networth individuals (HNIs).

Insurance

ULIPs are marketed as a two-in-one product, but they are less of an insurance policy and more of an investment. If the maturity proceeds of a ULIP are to be tax-exempt under Section 10(10D), the insurance cover in the ULIP needs to be at least 10 times the annualised premium. This could be a relatively small life insurance cover for many as the cover should take into account your income and expenses as well as liabilities.

ELSS does not have any in-built insurance component. But fund houses such as ICICI Prud, Nippon India, ABSL and PGIM offer no-cost insurance cover (of up to ₹50 lakh) per eligible investor if you invest through a Systematic Investment Plan (SIP) for at least three years in the respective tax-saving fund. SIP insurance is free for ELSS investors. A few new-generation ULIPs refund the mortality charge if you stay put till maturity.

Taxation

At present, ELSS investments, like other equity fund investments, face 10 per cent long-term capital gains (LTCG) tax arising out of the sale of units if the LTCG exceeds ₹1 lakh in a financial year (gains up to January 31, 2018, being grandfathered).

Until now, there had been no capital gains tax for ULIP proceeds on maturity. A part of this tax arbitrage has been closed by the latest Budget, especially for high-income earners.

The Budget has proposed that ULIP maturity proceeds be taxed just like equity mutual funds if the annual premium is more than ₹2.5 lakh (implying a sum assured of about ₹25 lakh, going by the condition for exemption under Section 10(10D)) on new ULIPs signed on or after February 1, 2021. The tax, however, will not apply to sums received on the death of the insured.

A few grey areas arise here. One, while ULIPs with a premium of over ₹2.5 lakh will be taxed as equity funds, not all ULIPs are entirely linked to equities. ELSS schemes offer only equity portfolios, but ULIPs offer asset classes such as equity, debt, hybrid — portfolios comprising large-caps, mid-caps, balanced, income, bond, government securities, etc.

Two, now that there is no Section 10(10D) benefit for high- premium ULIPs, it remains to be seen how the premium versus sum-assured parameters change for policies which call for a premium of over ₹2.5 lakh.

Three, in mutual funds, ‘switching’ of investment in units within the same scheme from growth option to dividend option (or vice-versa), and from regular plan to direct plan (or vice-versa) is liable to capital gains tax.

However, switching of investments to/from investment plans to another within the same ULIP does not appear to be subject to capital gains tax, going by the Budget Memorandum.

Liquidity

Each investment in ELSS carries a lock-in of three years (each SIP is locked in for three years), which is quite low for equity investments.

One should invest with a greater time horizon of 5-7 years. Even if you don’t invest regularly, your existing ELSS investments are intact and earn market-linked return.

In the case of ULIPs, there is a five-year lock-in period. During this time, if you are unable to pay premiums upon expiry of the grace period, the policy is discontinued. The residual fund value, after deducting discontinuance fee, is put into the discontinued policy fund (gives 4 per cent pa) while any risk cover ceases to exist.

Investors in ULIPs can redeem the entire amount at the end of the five years even if the premium has been paid in instalments. In ELSS, only those units that have completed the three-year lock-in can be sold.

Costs

Regular plans of tax-saving mutual funds cost 1.6-2.5 per cent (total expense ratio) of the assets under management. Direct ELSS plans are cheaper. The 10-year lump-sum returns for regular ELSS plans range from 10 per cent to 18 per cent CAGR.

In ULIPs, if the policy term is 10 years or less, norms say the difference between the total return and post-cost return can’t be more than 3 per cent on maturity. If the policy term is over 10 years, the difference between the total return and post-cost return can’t be over 2.25 per cent on maturity. Based on just NAVs, the 10-year lump-sum returns for equity ULIPs range 6-17 per cent CAGR (pre-expenses).

Costs are coming down in new-generation ULIPs, with a few insurers removing premium allocation charges, refunding mortality charges, charging fund management charges on par with mutual funds, reducing/removing switching charges and premium allocation charges. Additionally, ULIPs are trying to sweeten returns with ‘loyalty additions’, ‘wealth boosters’, etc.

(This is a free article from the BusinessLine premium Portfolio segment. For more such content, please subscribe to The Hindu BusinessLine online.)

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How To Apply For SBI FD Online?

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Types of SBI FD Schemes

One can apply for the following FD schemes of SBI according to your financial need:

SBI Term Deposit: Depositors can selectively select a maturity period that ranges from 7 days to 10 years. Rs. 1,000 is the minimum investment limit. Loans against FD and options for premature withdrawal are open.

SBI Tax Saving FD: The term of the investment is set for 5 years under this scheme. Rs. 1.5 Lakh is the highest investment amount. Loans against FD and premature withdrawal facilities, however, are not available to the depositors.

SBI FD Reinvestment Scheme: The maturity duration is between 6 months and 10 years for this scheme. With a deposit of only Rs. 1,000 depositors can apply for this scheme. The interest gained through this plan is reinvested to build a strong yield. There are foreclosure and loan against FD amount are also open for the depositors.

SBI Multi Option Scheme: It is a blend of an FD and a savings account. With a minimum deposit threshold of Rs. 10,000, the tenure varies from 1 and 5 years under this scheme. The partial withdrawal option is also open to the eligible depositors.

SBI Annuity Scheme: Under this scheme, payment is rendered through EMI, but the amount invested must be done through a lump sum. 36, 60, 84 and 120 months are tenure choices. Rs. 25,000 is the minimum contribution permitted under this scheme. Premature withdrawal is also allowed but only after the demise of the holder.

Eligibility required to open an FD account in SBI

Eligibility required to open an FD account in SBI

To open an SBI FD account you need to meet with the following eligibility criteria:

  • The depositor must be an Indian resident.
  • NRIs are also eligible to open NRE/NRO account with SBI
  • Partnership firms, Hindu undivided families,
  • The depositor must have a stable source of income.

Documents required to apply for SBI FD

Documents required to apply for SBI FD

The following basic documents are mandated to open a fixed deposit account in SBI:

Identity proof: Aadhaar Card, Passport, Voter ID, Driving license, PAN Card, passport size photographs

Resident proof: Aadhaar Card, Passport, Utility bills (last 3 months)

Age proof: Birth certificate, matriculation certificate, senior citizen ID card and so on

Income proof: Bank account statement, salary slip of last 3 months

Procedure to apply for SBI FD online

Procedure to apply for SBI FD online

Visit the SBI net banking portal and sign in to your account using the required credentials.

Now click on e-TDR/e-STDR (FD) under the fixed deposit section.

  • Here TDR is a term deposit and STDR is Special Term Deposit. The interest is paid only at the time of maturity against STDR deposit, whereas in a TDR deposit, the interest is payable at specified regular periods
  • Select the type of FD you want to open and click on ‘Proceed’
  • Now select the savings account from which you want to debit the amount.
  • Now select the FD principal amount and specify the same in the ‘Amount’ section.
  • If you are over 60., check the ‘Senior Citizens’ section. Over and above the general customers on FDs, senior citizens get 50 bps respectively.
  • Now select the tenure period for which you want to open an FD account
  • Now select maturity instruction from auto renew principal and interest, auto renew principal and repay interest and repay principal and interest for your FD account.
  • Accept the terms and conditions and click on ‘Submit’
  • Your FD account with the submitted specifics will appear on the screen now
  • Click on ‘Ok’ and you are done.
  • For future reference, please keep the transaction number handy. By clicking on the respective alternatives, you can print or save it as a PDF also.

SBI FD Interest Rates

SBI FD Interest Rates

Tenure ROI for general public ROI for senior citizens
Seven to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4.40%
180 days to 210 days 4.40% 4.90%
211 days to less than one year 4.40% 4.90%
One year to less than two years 5.00% 5.50%
Two years to less than three years 5.10% 5.60%
Three years to less than five years 5.30% 5.80%
Five years and up to 10 years 5.40% 6.20%



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How To Apply For SBI FD Online?

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Types of SBI FD Schemes

One can apply for the following FD schemes of SBI according to your financial need:

SBI Term Deposit: Depositors can selectively select a maturity period that ranges from 7 days to 10 years. Rs. 1,000 is the minimum investment limit. Loans against FD and options for premature withdrawal are open.

SBI Tax Saving FD: The term of the investment is set for 5 years under this scheme. Rs. 1.5 Lakh is the highest investment amount. Loans against FD and premature withdrawal facilities, however, are not available to the depositors.

SBI FD Reinvestment Scheme: The maturity duration is between 6 months and 10 years for this scheme. With a deposit of only Rs. 1,000 depositors can apply for this scheme. The interest gained through this plan is reinvested to build a strong yield. There are foreclosure and loan against FD amount are also open for the depositors.

SBI Multi Option Scheme: It is a blend of an FD and a savings account. With a minimum deposit threshold of Rs. 10,000, the tenure varies from 1 and 5 years under this scheme. The partial withdrawal option is also open to the eligible depositors.

SBI Annuity Scheme: Under this scheme, payment is rendered through EMI, but the amount invested must be done through a lump sum. 36, 60, 84 and 120 months are tenure choices. Rs. 25,000 is the minimum contribution permitted under this scheme. Premature withdrawal is also allowed but only after the demise of the holder.

Eligibility required to open an FD account in SBI

Eligibility required to open an FD account in SBI

To open an SBI FD account you need to meet with the following eligibility criteria:

  • The depositor must be an Indian resident.
  • NRIs are also eligible to open NRE/NRO account with SBI
  • Partnership firms, Hindu undivided families,
  • The depositor must have a stable source of income.

Documents required to apply for SBI FD

Documents required to apply for SBI FD

The following basic documents are mandated to open a fixed deposit account in SBI:

Identity proof: Aadhaar Card, Passport, Voter ID, Driving license, PAN Card, passport size photographs

Resident proof: Aadhaar Card, Passport, Utility bills (last 3 months)

Age proof: Birth certificate, matriculation certificate, senior citizen ID card and so on

Income proof: Bank account statement, salary slip of last 3 months

Procedure to apply for SBI FD online

Procedure to apply for SBI FD online

Visit the SBI net banking portal and sign in to your account using the required credentials.

Now click on e-TDR/e-STDR (FD) under the fixed deposit section.

  • Here TDR is a term deposit and STDR is Special Term Deposit. The interest is paid only at the time of maturity against STDR deposit, whereas in a TDR deposit, the interest is payable at specified regular periods
  • Select the type of FD you want to open and click on ‘Proceed’
  • Now select the savings account from which you want to debit the amount.
  • Now select the FD principal amount and specify the same in the ‘Amount’ section.
  • If you are over 60., check the ‘Senior Citizens’ section. Over and above the general customers on FDs, senior citizens get 50 bps respectively.
  • Now select the tenure period for which you want to open an FD account
  • Now select maturity instruction from auto renew principal and interest, auto renew principal and repay interest and repay principal and interest for your FD account.
  • Accept the terms and conditions and click on ‘Submit’
  • Your FD account with the submitted specifics will appear on the screen now
  • Click on ‘Ok’ and you are done.
  • For future reference, please keep the transaction number handy. By clicking on the respective alternatives, you can print or save it as a PDF also.

SBI FD Interest Rates

SBI FD Interest Rates

Tenure ROI for general public ROI for senior citizens
Seven to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4.40%
180 days to 210 days 4.40% 4.90%
211 days to less than one year 4.40% 4.90%
One year to less than two years 5.00% 5.50%
Two years to less than three years 5.10% 5.60%
Three years to less than five years 5.30% 5.80%
Five years and up to 10 years 5.40% 6.20%



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Banks Providing The Lowest Interest Rates On Gold Loans

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How to apply for a gold loan?

Like any other loan, via both online and offline, a gold loan can be applied. While the offline procedure is typically chosen by most individuals, lenders often offer online gold loan alternatives. You just need to access the lender’s official portal and fill in the basic specifics online. The official will come back to you once you have submitted the loan application form. Your application will be further verified following the authentication of the gold submitted by you and also your personal information.

Eligibility and documents required

Eligibility and documents required

The loan can be used by someone who holds gold ornaments. Only individuals above the age of 18 years are considered for it, though. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. As this is a secured loan against a gold asset, no proof of income is required. Therefore, only basic KYC papers, which are passport size photographs, ID proof and address proof, are required in order to apply for the loan.

How gold loan amount is calculated?

How gold loan amount is calculated?

On the basis of the type of security that is placed, the amount of the loan is determined. At any particular time and date, the maximum loan amount you will get against the gold product relies on the weight and current market value of gold. Other considerations are often taken into account, such as the type of gold and the borrower’s repayment potential.

Importance of CIBIL score while applying for a gold loan

Importance of CIBIL score while applying for a gold loan

To get cheaper rates on loans, having a strong credit record is always beneficial. That being said, some individuals who use this loan are not even employed, but the eligibility to get the loan is impacted by having no credit background. A credit score is a representation on how you treat your loan payments professionally. But to address the point, yes, your credit score is influenced by the gold loan or credit in particular. Wisely administering your gold loan payments will increase your credit score.

Gold loan rates

Gold loan rates

Banks ROI in %
Bank of Maharashtra 7.35
Bank of India 7.40
State Bank of India 7.50
Punjab & Sind Bank 7.50
Canara Bank 7.65
UCO Bank 8.50
Federal Bank 8.50
Lakhsmi Vilas Bank 8.80
HDFC 9.50
Kotak Mahindra Bank 10.0



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Banks Providing The Lowest Interest Rates On Gold Loans

Personal Finance

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How to apply for a gold loan?

Like any other loan, via both online and offline, a gold loan can be applied. While the offline procedure is typically chosen by most individuals, lenders often offer online gold loan alternatives. You just need to access the lender’s official portal and fill in the basic specifics online. The official will come back to you once you have submitted the loan application form. Your application will be further verified following the authentication of the gold submitted by you and also your personal information.

Eligibility and documents required

Eligibility and documents required

The loan can be used by someone who holds gold ornaments. Only individuals above the age of 18 years are considered for it, though. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. As this is a secured loan against a gold asset, no proof of income is required. Therefore, only basic KYC papers, which are passport size photographs, ID proof and address proof, are required in order to apply for the loan.

How gold loan amount is calculated?

How gold loan amount is calculated?

On the basis of the type of security that is placed, the amount of the loan is determined. At any particular time and date, the maximum loan amount you will get against the gold product relies on the weight and current market value of gold. Other considerations are often taken into account, such as the type of gold and the borrower’s repayment potential.

Importance of CIBIL score while applying for a gold loan

Importance of CIBIL score while applying for a gold loan

To get cheaper rates on loans, having a strong credit record is always beneficial. That being said, some individuals who use this loan are not even employed, but the eligibility to get the loan is impacted by having no credit background. A credit score is a representation on how you treat your loan payments professionally. But to address the point, yes, your credit score is influenced by the gold loan or credit in particular. Wisely administering your gold loan payments will increase your credit score.

Gold loan rates

Gold loan rates

Banks ROI in %
Bank of Maharashtra 7.35
Bank of India 7.40
State Bank of India 7.50
Punjab & Sind Bank 7.50
Canara Bank 7.65
UCO Bank 8.50
Federal Bank 8.50
Lakhsmi Vilas Bank 8.80
HDFC 9.50
Kotak Mahindra Bank 10.0



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