Can Sovereign Gold Bonds be used as collateral for loans?

June 16, 2023

Daily Quiz on Current Affairs by Gkseries – 16 June 2023

(a) Yes, but only by individuals
(b) Yes, by any eligible entity
(c) No, they cannot be used as collateral
(d) Yes, but only by companies

Ans.(b)
Sol. Yes, by any eligible entity. SGBs can be used as collateral for loans, subject to the loan-to-value (LTV) ratio applicable to ordinary gold loans as mandated by the RBI.