| Fresh issues in 2026<\/td> | Available regularly<\/td> | Paused since Feb 2024<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n The RBI gold bond scheme has been off since February 2024. That leaves Gold Loan Backed Bonds as one of the few active options.<\/p>\n\n\n\n <\/span>What Returns Can You Expect from Gold Bonds?<\/strong><\/span><\/h2>\n\n\n\nMost of these bonds pay between 8.5% and 13.80% a year. Current gold bond rates run between 8.5% and 9.5% a year. Longer tenures fetch better rates. Muthoot Fincorp’s April 2026 issue had coupons from 8.51% to 9.25%.<\/p>\n\n\n\n Quick example: Invest \u20b92 lakh in an NCD paying 9.25% a year. You get \u20b918,500 every year as interest. Over 10 years, cumulative interest comes to \u20b91.85 lakh. Principal of \u20b92 lakh returns at maturity.<\/p>\n\n\n\n Most issues come with either cumulative options where interest is paid at maturity, or regular options paid monthly, quarterly or annually.<\/p>\n\n\n\n <\/span>How Safe Are Gold Loan Backed Bonds?<\/strong><\/span><\/h2>\n\n\n\nThese bonds come with two safety nets.First, the NBFC’s credit rating. These bonds carry ratings from AAA (highest safety) down to BBB+ (moderate safety, still investment grade). Higher-rated issuers offer lower coupons; lower-rated issuers offer higher coupons in return for the additional credit risk you take on. Check the specific rating on the series before subscribing.
Beyond the rating and the gold collateral, two more checks give you comfort: the asset cover ratio (how much gold-loan receivable backs every rupee of bonds outstanding), and whether the specific series you are buying is secured or unsecured. Most series in this category are secured against gold loan receivables. The offer document spells out both details for each series.<\/p>\n\n\n\n <\/span>Tax Treatment<\/strong><\/span><\/h2>\n\n\n\nTax on these bonds is simple. They follow the same rules as any other corporate bond, with no special treatment for the gold backing.<\/p>\n\n\n\n Interest income gets added to your total income and taxed at slab rate. TDS applies on listed NCDs above the threshold. Selling on the exchange before maturity triggers capital gains tax. Long-term gains on listed bonds held over 12 months are taxed at 12.5% without indexation after Budget 2024. Short-term gains go straight into total income.<\/p>\n\n\n\n The corporate bond tax framework has held steady for years, unlike the RBI gold bond scheme, which got new capital gains tax rules in Budget 2026.<\/p>\n\n\n\n <\/span>How to Invest in Online Gold Bonds<\/strong><\/span><\/h2>\n\n\n\nYou don’t need to visit a branch or office to buy these bonds. Three online routes work for retail investors.<\/p>\n\n\n\n \n- Apply during a public NCD issue through your broker or the NBFC’s own website<\/li>\n\n\n\n
- Buy listed NCDs on NSE or BSE through your trading account<\/li>\n\n\n\n
- Use an Online Bond Platform Provider like GoldenPi to browse and invest<\/li>\n<\/ul>\n\n\n\n
The third option is the easiest. All current gold bond options sit on one screen, with ratings, gold bond price, tenures and yields in one view.<\/p>\n\n\n\n Conclusion<\/strong><\/h3>\n\n\n\nGold Loan Backed Bonds give you an income-focused way to participate in India’s gold lending business without taking a direct bet on gold prices. You earn a fixed interest rate over a defined tenure, and your principal returns at maturity. The bonds are secured by the NBFC’s gold loan portfolio, with the physical jewellery pledged by borrowers sitting in vaults as the underlying backup.<\/p>\n\n\n\n For investors looking to diversify beyond bank FDs and equity, these bonds add a fixed-income layer with a clear collateral structure. The combination of credit rating, asset cover, secured structure, and the conservative LTV practices of the industry is what makes them a structured option within fixed income.<\/p>\n\n\n\n Suitability depends on your individual risk appetite, the specific issuer’s credit rating, and how the post-tax coupon compares with other options at your slab rate. As with any debt investment, reading the offer document, checking the rating, and verifying the security cover for the specific series are the right starting points.<\/p>\n\n\n\n <\/span>Gold Loan Backed Bonds<\/strong> FAQs<\/strong><\/span><\/h2>\n\n\n\nHow are Gold Loan Backed Bonds different from SGBs?<\/strong>
SGBs come from the RBI as government gold bonds, linked to gold prices with sovereign guarantee backing. Gold Loan Backed Bonds are NBFC NCDs with fixed coupons, secured against gold loan portfolios. No connection to gold prices.<\/p>\n\n\n\nCan I exit before maturity?<\/strong>
Yes. Most NCDs list on NSE or BSE post-issue, so secondary market exits are possible if liquidity is there. Some issues also come with a call option.<\/p>\n\n\n\nWhat is the minimum investment?<\/strong>
\u20b910,000 usually. Each NCD has a face value of \u20b91,000, with a minimum application of 10 NCDs.
Ready to Invest?<\/strong><\/p>\n\n\n\nVisit GoldenPi to explore current gold bond options. Compare yields, ratings and tenures in one place, and invest online with as little as \u20b910,000.<\/p>\n\n\n\n Disclaimer:<\/strong><\/h3>\n\n\n\nThis information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.<\/p>\n\n\n\n Fixed Deposit schemes are regulated by the Reserve Bank of India. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.<\/p>\n |