How to Buy Sovereign Gold Bonds Online?
- 3rd November 2025
- 03:00 PM
- 9 min read
Sovereign gold bonds are a sort of security that you can buy, and they might act as a strategic investment with the potential of outperforming other assets, especially during adverse market movements. If you are an investor and seeking an answer to how to buy gold bonds, you must know that you can buy them online, and for individuals, the maximum investment in a gold scheme must be up to 4 KG in a fiscal year. Read this blog to know more.
A Brief Definition of Sovereign Gold Bonds or SGBs
The Indian government introduced the Sovereign Gold Bond scheme in 2015. The Reserve Bank of India (RBI) issues the SGBs on behalf of the government.
Here are some key facts that you must know about SGBs and their working process before diving into the detailed steps of how to buy gold bonds.
When you invest in SGBs, they typically act as an alternative to an investment in physical gold. Here, the prevailing price of 1 gram of gold is usually the minimum investment amount for SGBs. For example, if 1 gram of gold is valued at INR 12000 on a given day, that is your minimum investment amount.
Also, SGBs have a maturity period of 8 years. If an investor purchases SGBs directly from the government, they might get the flexibility of selling them within the first 5 years through a premature redemption period.
You can also buy SGBs from the secondary market. You need to open a Demat account, using which you can buy or sell SGBs on the stock exchanges such as the NSE or BSE.
How to Buy a Sovereign Gold Bond Online in 2025?
In February 2024, the Indian government issued Sovereign Gold Bonds (SGBs) worth ₹6,263 crore. However, fresh issuances have since been discontinued. The good news is that you can still invest in existing SGBs through the secondary market using your Demat account.
With the PL Capital Group – Prabhudas Lilladher, using the PL Capital app, you can invest in SGBs. Note the following 5 steps and learn how to buy gold bonds:
Step 1: Open the PL Capital app on your Apple or Android device and log in using your credentials.
Step 2: Browse the app and look for the SGBs that are listed on stock exchanges like the NSE or BSE.
Step 3: Choose how much you want to invest in equivalent to grams of gold, and input the respective price as shown on the screen.
Step 4: Select your payment method and place your order using your trading account.
Step 5: You will see your SBS reflecting in your Demat account after 10-12 days of settlement.
Eligibility Criteria to Invest in Sovereign Gold Bond in 2025
As you have noted, the steps on how to invest in gold bonds online, you must take a look at the eligibility criteria to fulfil to invest in such a security:
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Individual Investors
As a resident Indian individual with a valid PAN, Aadhaar, etc, you can invest in SGBs. However, you must note that the maximum limit for investment is set to 4 kg of gold per investor.
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Hindu Undivided Family or HUF
If you belong to an HUF, you must also learn how to buy gold bonds, as HUFs can invest in SGBs as well. Similar to individual investments, HUFs are also limited to purchasing 4 kg of gold equivalent through an SGB per family.
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Charitable Trust Organisations and Universities
Charitable trusts or universities are also eligible to invest in SGBs. However, the maximum investment is higher for such entities compared to individuals or HUFs. Such entities can invest in up to 20 kg of gold in an SGB.
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Other Eligible Investors
Other investors, like an individual making an SGB investment on behalf of a minor, are eligible. Also, joint holders in a Demat account are eligible to invest in SGBs.
Key Benefits of Sovereign Gold Bond that You Must Know About
After learning how to buy a sovereign gold bond online, you must know some of its benefits to determine its potential as an investment vehicle. Take a look at the following section for a detailed view:
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Trading Location and Interest Amount
When you invest in SGBs, similar to other sorts of securities, you can see them trading on the stock exchanges such as the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). The recent interest rate on SGBs stands at 2.5% per annum, paid once in a 6-month period for 8 years.
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Taxation on Sovereign Gold Bonds
If there is a hike in the gold prices, you might make capital gains due to such price appreciation. Here lies the benefit, i.e., you do not have to pay taxes on it if you sell it after its maturity.
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Increased Safety
As you are interested in learning how to buy sovereign gold bonds, you must note their safety aspects. As the RBI issues it on behalf of the central government of India, there is almost no risk of default associated with it. When you are investing in gold bonds, unlike purchasing physical gold, you have a security against theft, wear, etc.
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Accessibility with Convenience
As of FY25, there are about 17.10 crore Demat accounts in India, and as you have learnt how to buy gold bonds using one, you get a few benefits. You can buy SGBs online, track the gold bond price performance, and sell them during maturity, all from one account and from anywhere.
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Loan facility of SGBs
Some banks might consider SGBs as collateral to secure a loan. Thus, you can get access to liquid funds faster without selling your SGB investment. Note that if you apply for a loan against your SGBs, you might get up to 75% value of your bond’s current value.
With PL, you can invest in stocks, mutual funds, gold bonds and more completely online. Download the PL Capital, fulfil the e-KYC and start investing today!
A Few Associated Implications of Sovereign Gold Bond Investment
After having the answer to how to buy gold bonds, if you are planning to invest in existing SGBs, you must take a look at their associated risks for an informed decision:
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Tax Implications on Interest and Premature Selling
Although the capital gains from SGBs are tax-exempt, the interest is not. You must pay taxes on your accumulated interest from an SGB investment as per your applicable income tax slab rate. If you sell SGBs on the secondary market before their maturity, an STCG applies as per the tax slab, and an LTCG of 12.5% applies if held more than 1 year.
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Market and Liquidity Risks
Gold prices tend to fluctuate often, leading to periodic ups and downs. If prices drop after you invest, the value of your investment may decrease. Moreover, market trends indicate that Sovereign Gold Bonds (SGBs) usually have low liquidity on the stock exchange, making it challenging to sell them quickly or at your preferred price.
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Risk from the Interest Rate and Inflation
After understanding how to buy gold bonds, you must also learn how interest and inflation might be risk factors. With a rise in the interest rate, the fixed interest rate on SGBs might become less attractive. The fixed interest on SGBs might not keep up if inflation rises. For an effective ROI, you can consult portfolio management services and invest more informedly.
Conclusion
If you are looking for an answer for how to buy gold bonds, the process is pretty straightforward. With a Demat account, you can invest in SGBs completely online. By making an SGB investment, you not only get the chance to make capital gains but also earn interest twice a year.
With PL, invest in mutual funds, stocks, SGBs, and more using the PL Capital app. Download the app from the Play Store or App Store and start investing!
Frequently Asked Questions
1. Can I invest in SGB if I am a non-resident Indian?
No, as a non-resident Indian, you cannot invest in a sovereign gold bond, as only resident individuals or HUFs can do so. However, if you have invested in SGBs before you became an NRI, you can continue with the investment till its maturity.
2. Can a nominee claim the SGB amount if something happens to the investor?
Yes, in case of unfortunate events, a registered nominee can come forward and claim the SGB value. However, if the investor has not added a nominee before SGB investments, the nominee must produce a succession certificate to the depository to claim the fund.
3. How can an SGB investment be good for me?
Gold typically acts as a hedging instrument during market volatility and might even surpass the performance of other securities. Also, with SGB investments, you can create a diversified portfolio to spread risks across different types of assets.
4. How many times in a year does the RBI issue SGBs?
The RBI issues SGBs throughout a financial year, i.e. from April to March, in 4 tranches. However, currently, the RBI is not issuing any tranches, but you can invest in existing SGBs.
