Loans against sovereign gold bonds may help reduce borrowing cost: Experts

There's a five-year lock-in on SGBs and thereafter you may have to sell them at a discount, hence borrow

If you opt for a personal loan to meet an emergency, you may have to pay an interest rate anywhere between 10.5 and 24 per cent.

Interest rates on these loans have gone up in the current rate hike scenario. One option is to take a loan against an asset, as such, secured loans carry lower interest costs. One lesser-known option is a loan against Sovereign Gold Bonds (SGB).
 

Anyone who owns SGBs can avail of this loan. “As it’s a secured loan, its interest rate is much lower than on a personal loan,” says Adhil Shetty, chief executive