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