Loan Against Gold from Punjab National Bank

Unleash the potential of your gold jewellery and gold coins to pay off your debts

Punjab National Bank PNB Advance Against Gold Jewellery/Ornaments and Gold Coins

This scheme helps borrowers access needed funds by pledging their gold jewellery or specially-minted gold coins sold by banks. This advance can be used to meet any financial needs such as a wedding, overseas travel, higher education, etc. as well as to consolidate high-interest debts.

Features of PNB Advance Against Gold

Why this Loan?

  • The PNB Advance Against Gold Jewellery/Ornaments and Gold Coins is meant for borrowers who want to get access to funds by pledging gold jewellery/ornaments or specially minted gold coins sold by banks to meet their financial needs
  • This advance scheme can also be availed by borrowers as a consolidation loan to 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. 10 lakh. If the borrower wants to avail a loan against gold coins then the maximum weight of the coins must be less than or equal to 50 grams

Interest

  • Demand/Term Loan: The interest rate applicable to this loan is defined as the sum of two factors: Repo Linked Lending Rate (RLLR) and a Spread factor of 1.95%. As of October 2020, the RLLR of PNB is 6.80% bringing the effective interest rate at 8.75%
  • Overdraft: The interest rate applicable to the overdraft is defined as the sum of two factors: Repo Linked Lending Rate (RLLR) and a Spread factor of 2.20%. As of October 2020, the RLLR of PNB is 6.80% bringing the effective interest rate at 9.00%

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
  • The maximum weight of the coins must be less than or equal to 50 grams per borrower to avail 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

Security Needed

  • The bank accepts pledging of 22-carat gold ornaments or gold coins to secure this loan. If gold with purity less than 22-carat is accepted by PNB for this scheme, the value is converted proportionately into 22-carat for financing under this scheme

Processing Charges

  • The bank charges up to 0.75% of the loan amount 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 National Bank Website: www.pnbindia.com and www.netpnb.com (net banking)
  • Headquarters: New Delhi, India
  • Call Centre Toll-Free Number: 1800 180 2222