Bonds Collateral Engine 2026

LIC Loan Against Sovereign Gold Bonds & Securities Calculator

Unlock instant liquidity from your bond holdings without premature liquidation. Calculate eligible limits up to 75% LTV on Sovereign Gold Bonds (SGB) and Government Securities (G-Secs). Plan monthly charges under interest-only or standard reducing balance repayment models.

Regulatory LTV Limits: Borrow up to 75% of gold market value or bond ratings
Flexible Repayment: Select between monthly Interest-Only or standard reducing EMI schedules
Multi-Asset Modeler: Evaluates SGBs, G-Secs, and corporate bonds
Sleek Slider Interfaces: Check assets valued up to ₹1 Crore
Lien Marking Analytics: Details structural requirements for depository lien marking
Loan Against Bonds & Securities Inputs
Calculate eligibility and monthly charges for borrowing against SGBs, G-Secs, and LIC bonds.
5.00 Lakh
12 Months
Max Loan Limit Against Bonds

3,75,000

Approved up to 75% LTV (Regulatory limits apply).

Regulatory Valuation Summary
Asset Valuation:5,00,000
LTV Margin Ceiling:75%
Eligible Collateral Margin:1,25,000
Interest Rate:9.5% p.a.
Repayment Mode:Interest-Only
Monthly Interest Payable:2,969
Total Interest Cost:35,628
Total Repayment Amount:4,10,628

• Gold Bonds remain held in demat with lien marked in favor of the lender.

• Interest rates are calculated on reducing balance for EMI model, and simple interest for interest-only model.

Lending Against Bonds: Regulatory Guidelines & LTV Caps

Borrowing against **Sovereign Gold Bonds (SGB)**, **Government Securities (G-Secs)**, or high-rated corporate bonds provides an efficient credit pathway. It allows investors to retain their investment holdings (earning periodic interest or gold price appreciation) while accessing immediate capital. Because bonds are highly liquid and low-risk, lenders offer competitive interest rates.

LTV Guidelines & Pledging Processes

Lending limits are governed by RBI safety guidelines and depend on the bond issuer and rating:

  • Sovereign Gold Bonds (SGB): Maximum LTV is capped at **75%** of the average gold price of the preceding 30 days.
  • G-Secs & RBI Bonds: Eligible for up to **75%** LTV due to sovereign backing.
  • Corporate Bonds & Debentures: Capped at **70%** or lower, depending on the credit rating (typically AAA/AA required).

Flexible Repayment: Interest-Only vs. EMI

Loans against securities typically offer two distinct repayment structures:

Interest-Only RepaymentYou pay only the monthly interest accrued on the outstanding loan. The principal remains unpaid and is cleared in a single bullet payment at the end of the tenure.
Standard Reducing EMIYou repay both principal and interest in equal monthly installments over the tenure, continuously reducing the outstanding balance.

Frequently Asked Questions (FAQs)

Do I still receive interest payouts from my pledged bonds?
Yes, any interest payouts or gold coupon payments (e.g., 2.50% p.a. for SGBs) continue to credit directly to your registered bank account. Pledging only locks the bonds from being sold or transferred.
How is the lien marked on gold bonds?
If the bonds are in demat form, the lien is marked electronically through your depository participant (NSDL/CDSL). For physical bond certificates, the certificates are held by the lender along with a lien endorsement.

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