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Union of India - Section

Section 14 in The Sovereign Gold Bond Scheme

14. Loan against Bonds.

- (i) The Gold Bonds issued under this Scheme may be used as collateral security for availing any loan.
(ii)The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India shall also apply to the Bonds issued under this Scheme.
(iii)The lien on the bond shall be marked in the depository by the Authorised banks.