• 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 a minimum cap of Rs.25,000 as loan amount approved by Punjab National Bank. For non-productive purposes, the maximum loan amount that is generally approved is up to Rs. 10 lakh..

    • Loan Margin
    • The loan margin that has to be brought in by the borrower is 25% and 35% for bullet payment option.

    • 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.

      Check Latest - Gold Prices Today

    • Repayment Tenure
    • Loans given for agricultural purposes can be repaid in 12 monthly installments or as two half-yearly 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.

      Loans availed for non-agricultural purposes can be repaid in 12 monthly installments or as two half-yearly installments. 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 Purpose Interest Rates
    Advance against Gold Jewellery or Ornaments 7.25% p.a. - 7.5% p.a.
    Advance against Sovereign Gold Bonds 7.15% p.a. - 7.35% p.a.

    PNB Gold Loan - Other Fees and Charges

    Other Charges
    Processing fee 0.75% of the loan amount plus GST
    Prepayment Charges Nil
    Documentation charges Rs.500 - Rs. 5,000 including taxes

    FAQs on PNB Gold Loan

    1. Are they any charges levied in case I pre-close the loan?
    2. No, you don’t have to pay any charges in case of pre-closure.

    3. What is the processing fee that is levied on gold loan from PNB?
    4. The processing fee is 0.75% of the loan amount. The minimum amount that is charged Rs.500 plus GST and the maximum amount that can be charged is Rs.5,000 plus GST.

    5. What are the different purposes the loan can be availed for?
    6. The different purposes the loan can be availed for are mentioned below:

      • Agricultural/Allied purposes
      • For non-productive purposes such as meeting marriage expenses, educational expenses, and medical expenses.
    7. What is the maximum amount of PNB gold loan I can avail?
    8. You can avail up to Rs.10 lakh.

    9. Is the interest rate linked to the RLLR or the MCLR?
    10. The interest rate is linked to the RLLR.

    11. What are the different methods that can be used by gold loan borrowers to repay their advances?
    12. 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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