Loan Against Gold from Punjab & Sind Bank
Leverage the power of your gold jewellery and gold coins to pay off your debts
Punjab & Sind Bank PSB Gold Loan
This loan helps borrowers access needed funds by pledging their gold jewellery or specially-minted gold coins sold by banks. This secured loan can be used to meet any financial needs such as a wedding, overseas travel and higher education as well as to consolidate high-interest debts.
Features of PSB Gold Loan
Why this Loan?
- The Punjab & Sind Bank PSB Gold Loan is meant for borrowers who want to get access to funds by pledging gold jewellery or specially minted gold coins sold by any bank to meet their financial needs
- Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, thereby consolidating their debts
Loan Amount
- The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 25 lakh
Interest
- Loans up to Rs. 2 lakh: The interest rate applicable to this loan is defined as the sum of one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium of 1.00%. As of October 2020, the MCLR of Punjab & Sind Bank is 7.70% bringing the effective interest rate at 8.70%
- Loans from Rs. 2 lakh to Rs. 10 lakh: The interest rate applicable to this loan is defined as the sum of one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium of 1.75%. As of October 2020, the MCLR of Punjab & Sind Bank is 7.70% bringing the effective interest rate at 9.45%
- Loans above Rs. 10 lakh: The interest rate applicable to this loan is defined as the sum of one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium of 2.25%. As of October 2020, the MCLR of Punjab & Sind Bank is 7.70% bringing the effective interest rate at 9.95%
Repayment
- This loan is repayable within 12 months
Eligibility
- True owners of the gold ornaments, jewellery or specially minted gold coins sold by the banks are eligible for this loan
- Existing KYC compliant customers of PSB, employees and ex-staff of PSB are eligible for this loan
Margin Money (Borrowers Contribution to Total Cost)
- The bank charges anywhere from 25% to 35% of the value at the time of sanction
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a margin of 20% means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.
Security Needed
- The bank accepts pledging of 22-carat gold ornaments or gold coins to secure this loan
Processing Charges
- The bank charges up to 0.50% of the loan amount subject to a minimum of Rs. 500 and Rs. 10,000 for processing this loan
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
- Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.
Reference Facts
- Punjab & Sind Bank Website: www.psbindia.com
- Headquarters: New Delhi, India
- Call Centre Toll-Free Number: 1800 419 8300