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    Overview about PNB Gold Loan

    Punjab National Bank offers loans against gold ornaments, jewellery and gold coins to customers in India. The gold loan can be availed for productive purposes inclusive of agricultural and allied activities and for non-productive purposes like medical treatments, educational purposes and for other unplanned emergencies. Depending on the purpose the loan is being procured for, Punjab National Bank will approve the required loan amount at a competitive interest rate.

    Features of PNB Gold Loan

    The following are the key features of a PNB Gold Loan -

    Quantum of Finance

    For productive purposes, there is no cap on the loan amount approved by Punjab National Bank. For non-productive purposes, the maximum loan amount that is generally approved is up to Rs. 10 lakhs.

    Loan Margin

    The loan margin that has to be brought in by the borrower is 25%.

    Security

    Customers have to submit gold ornaments, jewellery or coins issued by any bank while applying for the advance. When PNB approves a loan against gold coins (pledged as security), the maximum weight per coin per customer should not be more than 50 grams.

    Valuation

    As decided by the RAD, 22 carat gold will be accepted for approving loans. If the gold ornament or jewellery is lesser than 22 carat, then PNB will convert the required value into 22 carat and then sanction the loan.

    Repayment Tenure

    Loans given for agricultural purposes can be repaid in 12 monthly installments or as four quarterly installments. PNB will retrieve the interest on a half-yearly or yearly basis, as per the harvest season. The loan account can be adjusted to include a maximum tenure of 12 months. The overdraft facility can be renewed on an annual basis.

    Loans availed for non-agricultural purposes can be repaid in 12 monthly installments or as four quarterly installments. The overdraft facility can be renewed on an annual basis. The interest will be levied as required and the principal has to be repaid within the 12-month tenure.

    PNB Gold Loan Interest Rates

    The interest rates offered by Punjab National Bank (PNB) for loans against gold jewellery, ornaments or coins are as follows -

    For Productive Purposes Interest Rates
    For Agriculture - Loans up to Rs. 10 lakhs MCLR + 1.60%
    For other productive purposes MCLR + 2.60%
    For Non-Productive Purposes - Loans up to Rs. 10 lakhs MCLR + 2.60%

    PNB Gold Loan - Other Fees and Charges

    Other Charges
    Upfront Fees 0.70% plus service taxes
    Documentation Charges Loans up to Rs. 2 lakhs - Rs. 270 plus service taxes Loans above Rs. 2 lakhs - Rs. 450 plus service taxes
    Prepayment Charges Nil

    PNB Gold Loan FAQs

    1. Does Punjab National Bank levy any fees for obtaining interest certificates or no-due certificates?

      Yes, for PS advances PNB charges Rs. 50 per certificate and for other types of certificates, the charge is Rs. 150.

    2. What are the different methods that can be used by gold loan borrowers to repay their advances?

      Customers can set standing instructions (ECS), issue post-dated cheques and also approach a branch office to make repayments towards their gold loans.

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