Customers of Punjab National Bank (PNB) in India can obtain loans against gold coins, jewelry, and ornaments. These gold loans can be utilized for emergencies, education, healthcare, farming, and other constructive purposes.

Both existing and new customers can avail themselves of this gold loan option, with amounts up to Rs. 10 lakhs by pledging gold jewelry, including gold coins purchased from banks.

Details of the Punjab National Bank Gold Loan Schemes

• Loan Amounts: Rs. 25,000 to Rs. 10,00,000

• Processing Fees: 0.75% plus GST

• Accepted Ornaments: Gold jewelry, including necklaces, rings, and bracelets. Accepted gold items include bars, cookies, and coins with purity ranging from 18 to 22 carats.

Characteristics of the Punjab National Bank Gold Loan Schemes

The gold loan is available for both personal and business needs.

No prepayment penalties are associated with these loans.

Gold jewelry or coins are required as collateral.

Gold coins or jewelry should not exceed 50 grams and must have a purity of 18 to 22 carats.

The loan is available to businessmen, students, pensioners, salaried workers, self-employed professionals, and homemakers. The applicant must be at least 18 years old.

PNB Gold Loan Interest Rates for 2024

Advance against Gold Loan: 7.25%

Advance against Gold Jewelry or Ornaments: 7.25% p.a. to 7.5% p.a.

Advance against Sovereign Gold Bonds: 7.15% p.a. to 7.35% p.a.

Types of Gold Loan Schemes from Punjab National Bank

PNB offers gold lending programs for salaried individuals and professionals. The loan can be used for various purposes. Additionally, PNB offers a low-interest rate of 5.88% annually on gold loans and provides loans against gold for agricultural use at a lower interest rate with flexible repayment options to support farmers.

Eligibility for the Punjab National Bank Gold Loan Scheme

The minimum age requirement is 18 years.

Individuals must have gold jewelry, coins, or ornaments to mortgage.

A steady income is optional.

Existing or new account holders with the bank are eligible (optional).

Documents Required for the Punjab National Bank Gold Loan

Properly completed and signed gold loan application.

Two passport-sized photos.

Identification proof: Passport, voter ID card, driver's license, PAN card, Aadhaar card, or government department ID card.

Proof of address: Current house lease agreement, recent electricity bill, recent phone or mobile bill, recent credit card statement.

Proof of income (optional): Latest pay stub with all deductions, Form 16, or income tax returns for the past two fiscal years.

Other Charges of the Punjab National Bank Gold Loan Scheme

Some banks impose a processing fee, which may be waived by prior agreement. A minor fee for gold evaluation by an independent valuer might also be charged. Prepayment penalties may be imposed if loans are repaid early, and a late payment penalty will be assessed for delayed interest payments.

How to Apply for a PNB Gold Loan Scheme

Eligible applicants must visit the nearest PNB branch to obtain an application form. Complete the form with all necessary details and attach the required documents before submitting it to the bank.

Prepayment of the Gold Loan Scheme from Punjab National Bank

PNB offers a prepayment option allowing customers to repay the entire loan amount before the term ends without incurring prepayment fees.

Repayment of the Gold Loan

• For Gold Loan: The repayment period can last up to 12 months, with monthly interest deductions. At maturity, the outstanding interest and principal must be paid together.

• For Agriculture Gold Loan: Similar to the standard gold loan, the repayment period can last up to 12 months, with monthly interest deductions. The principal and interest are paid together at maturity.

Advantages of the Punjab National Bank Gold Loan Scheme

Only gold jewelry and ornaments are eligible for the loan.

The maximum loan term is ten years.

Gold is securely stored in the bank's vault in the presence of the client.

The loan can be approved and disbursed within 30 minutes.

In case of foreclosure, PNB may charge up to 0.50% of the outstanding principal amount as a fee.

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