Loan Against Sovereign Gold Bonds from Punjab National Bank

It’s time to leverage the power of your sovereign gold bonds to pay off your debts

Punjab National Bank PNB Advance Against Sovereign Gold Bonds

This scheme helps borrowers access much-needed funds for personal needs by pledging their Sovereign Gold Bonds in the favour of PNB. This advance can be used to meet any personal needs such as a child’s wedding, overseas travel, child’s higher education, etc. as well as to consolidate high-interest debts.

Features of PNB Advance Against Sovereign Gold Bonds

Why this Loan?

  • The PNB Advance Against Sovereign Gold Bonds is meant for borrowers who want to get access to funds by pledging Sovereign Gold Binds to meet their financial needs
  • This advance can also be availed by borrowers as a consolidation loan to pay off their high-interest debts

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 10 lakh

Interest

  • Loan to Individuals: 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 1.15%. As of October 2020, the RLLR of PNB is 6.80% bringing the effective interest rate at 7.95%
  • Loan to Others: 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 2.15%. As of October 2020, the RLLR of PNB is 6.80% bringing the effective interest rate at 8.95%

Repayment

  • This loan is repayable within 8 years or the residual period of the Sovereign Gold Bond, whichever is earlier

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 25% of the value for individuals and 35% of the value for others 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 sovereign gold bonds to secure this loan

Processing Charges

  • There are no charges levied by the bank 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