Gold Loans are a popular option in India to meet urgent financial needs quickly and easily. Like other banks, Punjab National Bank also offers gold loan schemes to its customers with an affordable PNB Gold Loan Interest Rate. If you have gold ornaments or Gold Bonds with the Government, then the PNB Gold Loan can help you meet your financial needs. In this article, we’ll delve into the PNB Gold Loan Interest Rate in 2024 for various gold loan schemes.
PNB Gold Loan Schemes
PNB offers two types of Gold Loan Schemes against gold ornaments and Sovereign Gold Bonds (SGBs) to meet customers’ financial needs. Let us take a detailed look at these two schemes.
1. Advance Against Gold Jewellery/Gold Ornaments
This loan scheme is designed for customers who wish to take loans on pledging gold ornaments. The bank keeps the gold item as collateral and disburses loans based on the market value of the gold. The purity and weight of the gold determine the loan amount. The gold ornaments are safe with the bank, and you will receive them once your loan repayment is over.
2. Advance Against Sovereign Gold Bonds
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are a safe alternative to holding physical gold. PNB provides loans against these SGVs as well. The loan amount is based on the market value of the SGBs.
Both schemes are available in the form of demand loan and overdraft facility.
You may also want to read IndusInd Bank Personal Loan Interest Rate
PNB Gold Loan Eligibility
- For a loan against gold jewellery or ornaments, the borrower can only use this loan for personal needs and non-agricultural purposes. This could include medical expenses, education fees, marriage, and other unplanned costs.
- For a loan against Sovereign Gold Bonds (SGBs), the applicant must be an Indian resident. You can apply as an individual on behalf of a minor child or jointly with another person. Moreover, trusts, Hindu undivided families (HUFs), charitable institutions, and universities can apply for this loan.
PNB Gold Loan Interest Rate
PNB Gold Loan Interest Rate consists of the base rate (RLLR) and the Bank’s spread. Currently, the two components add up to 9.25. So the PNB Gold Loan Interest Rate for both schemes, under the demand loan or overdraft category, stands out as 9.25% per annum as of 11 April 2024. Customers can benefit from this comparatively lower interest rate and plan their monthly budget affordably. However, it’s crucial to remember that the actual interest rate may change depending on the BSP.
I’ve prepared a table below showing the revised PNB Gold Loan Interest Rate 2024, which you may find helpful.
| Name of Scheme | Revised Rate of Interest |
|---|---|
| Advance against Gold Jewellery/Gold Ornaments (Demand Loan) | RLLR + BSP (Presently 9.25%) |
| Advance against Sovereign Gold Bonds (Demand Loan) | RLLR + BSP (Presently 9.25%) |
| Advance against Sovereign Gold Bonds (Overdraft) | RLLR + BSP (Presently 9.25%) |
| Advance against Gold Jewellery/Ornaments (Overdraft) | RLLR + BSP (Presently 9.25%) |
Things to consider regarding PNB Gold Loan Interest Rate
- Contact PNB for the latest rates: Since the BSP is subject to change, you should visit PNB’s website or contact them directly for the most up-to-date interest rates applicable to your specific loan scheme.
- Factors affecting interest rates: Beyond the BSP, other factors like loan amount, tenure, and individual creditworthiness might also slightly influence the final interest rate offered.
PNB Gold Loan Amount
1. Advance against gold jewellery/ornaments
The minimum loan amount you can borrow is Rs. 25000, and the maximum is Rs. 25 lakh.
2. Advance against Sovereign Gold Bonds
The minimum loan amount you can take here is Rs. 50000, and the maximum amount is not fixed and depends on specific needs.
PNB Gold Loan Repayment Options
1. Advance against Gold Jewellery/ Gold Ornaments
PNB Gold Loan provides flexibility with the following repayment options:
- Bullet Repayment (Demand Loan): Pay the entire loan amount with interest at the end of the loan term, up to 12 months.
- EMI-Based Repayment (Demand Loan): Pay interest and principal in fixed installments over a chosen period.
- Overdraft Facility: Withdraw funds as needed within your credit limit, with interest charged only on the utilized amount. This facility requires annual renewal.
2. Advance against Sovereign Gold Loan (SGBs)
For loans against Sovereign Gold Bonds, the repayment period is until the Gold Bond maturity date, which can be a maximum of 8 years or less if the bond matures earlier.
PNB Gold Loan Margin
1. Advance against Gold Jeweller/ Gold Ornaments
- For a demand loan (bullet repayment), if you’re using gold jewellery as collateral, you would need to provide collateral value equivalent to 30% of the loan amount.
- For a demand loan (EMI-based), the collateral required is 25% of the loan amount.
- For an overdraft loan, the collateral required is also 25% of the loan amount.
2. Advances against Sovereign Gold Loan (SGB)
- If the borrower is an individual, the collateral required is 25% of the loan amount.
- If the borrower is an entity other than an individual (an institute or a company), the collateral required is 40% of the loan amount.
Note: Margin refers to the percentage of the market value of the Gold that PNB will not lend you. For instance, with a 30% margin requirement, if your gold is valued at Rs. 1 lakh, the maximum loan amount you can get would be Rs. 70,000 (Rs. 1 lakh – 30% of Rs. 1 lakh).
PNB Gold Loan Fees & Charges
The Processing Fees and Documentation Charges for PNB Gold Loan is shown below:
| Loan Type | Processing Fees | Documentation Charges |
|---|---|---|
| Advance against Gold Jewellery/Gold Loan | 0.30% of the loan amount plus GST, or Rs. 500 plus applicable Tax, whichever is higher. | Nil |
| Advance Against Gold Bonds | Nil | Nil |
PNB Gold Loan Application Process and Documents
The application for the PNB Gold Loan is a straightforward process. The following steps you need to follow to apply for the loan:
- Choose the PNB Gold Loan Schemes.
- You can apply online through PNB’s Digital Gold Loan platform or visit any PNB branch.
- Fill out the application form with the necessary details and submit it.
- Bank representatives will assess the purity and weight of your gold ornaments.
- Based on your eligibility and gold value, the bank will process your loan application.
- Upon approval, the loan amount will be credited to your account.
Documents
- Duly filled application form with photographs affixed.
- Identity Proof: Passport/ PAN Card/ Aadhar Card/ Driving Licence
- Address Proof: Voter ID/ Aadhar Card/ Driving Licence/ Utility Bills
Conclusion
PNB Gold Loan can be an excellent option considering its competitive interest rate, flexible repayment options, and wide loan amount limit. However, it’s always a good idea to read the comparison with other banks and financial institutions before finalizing the loan.
In this article, I’ve covered all the details regarding PNB Gold Loan, from eligibility criteria to the application process. If you like this article, please share it with your friends and family.
Frequently Asked Questions (FAQs)
As of April 11, 2024, the interest rate for PNB Gold Loans is 9.25% per annum, which includes the base rate (RLLR) and the bank’s spread.
Repayment options include bullet repayment, EMI-based repayment, and overdraft facility, depending on the type of loan taken (against gold jewellery/ornaments or Sovereign Gold Bonds).
– The minimum loan amount for loans against gold jewellery/ornaments is Rs. 25,000, and the maximum is Rs. 25 lakh.
– For loans against Sovereign Gold Bonds, the minimum amount is Rs. 50,000, and the maximum varies based on individual needs.
Margin requirements depend on the type of loan and borrower:
– For loans against gold jewellery/ornaments, the margin required is 25% or 30% of the loan amount, depending on the repayment option chosen.
– For loans against Sovereign Gold Bonds, it’s either 25% (for individuals) or 40% (for entities other than individuals).
– Processing fees for loans against gold jewellery are 0.30% of the loan amount plus GST, or Rs. 500 plus applicable tax, whichever is higher.
– There are no processing fees for loans against Sovereign Gold Bonds.
