PNB Gold Loan

Punjab National Bank or PNB is a government-owned bank, and is the second-largest public sector bank as well as the second largest in the country, both trailing right after SBI in terms of network and business. Today, PNB boasts of 180 million customers, more than 13000 ATMs and 10,910 branches. Punjab National Bank is one of the few banks in the country to have banking subsidiaries outside the country. PNB has banking subsidiaries in the United Kingdom in the form of PNB International Bank which has 7 branches across England. Apart from that, Punjab National Bank has branches in Dubai, Hong Kong, Kowloon, Oslo, Shanghai and Sydney. It also owns majority shares in Bhutan’s Druk PNB Bank and Nepal’s Everest Bank Limited.

Punjab National Bank Gold Loan

Punjab National Bank offers you gold loans at attractive interest rates and benefits like quick documentation process, reasonable repayment strategies, top-level security for the gold you have pledged, and uber-quick gold loan disbursal. mymoneykarma gives you all the information you need to get a gold loan from Punjab National Bank.

Benefits you get with a Punjab National Bank Gold Loan

1. Loans can be taken for the long term, like 12 months.

2. Gold loans are multipurpose. You can use these for anything legal, except for speculative purposes.

3. Quick loan disbursal time.

4. Top-class gold storage and security for your peace of mind.

5. Minimal documentation needed.

6. Competitive interest rates

Punjab National Bank Gold Loan amounts

The quantum of finance for productive and non-productive needs is as under:

1. Minimum amount of loan- Rs. 0.25 lakh

2. Maximum amount of loan- Rs. 10 lak
    

Punjab National Bank Gold Loan amounts Margin

The margin of the gold loan is:

1. 35% for bullet repayment scheme

2. 25% for payment of interest when levied repayment option

 

 

Punjab National Bank Gold Loan security

Gold jewelry and ornaments, and gold coins that are issued by any scheduled bank is given top-level security. However, it should be remembered that the advance given against security of gold coins which are sold by scheduled banks or PNB, the weight of which should not be more than 50 grams for each customer.

Punjab National Bank Gold Loan Rate per Gram

The following table shall give you a good estimate of gold loan per gram which PNB bank shall offer against gold jewelry at various levels of purity. The maximum LTV is 75% and the lowest is 65%.

Gold purity	Gold rate per gram- average of last 30 days	PNB best gold loan per gram	PNB lowest gold loan per gram
22 carat	48.530	3640	3158
20 carat	44.118	3640	2868
18 carat	39.706	2978	2581

Punjab National Bank Gold Loan rate of interest and loan tenure

The gold loan EMIs at PNB is a fixed amount. You pay this each month till you have repaid the loan fully, with interest. PNB offers only an EMI repayment scheme. The lowest EMI is Rs. 8727 at the lowest interest rate of 8.6%. Gold loan EMIs depend on:

1. Rate of interest: EMI is directly proportional to the interest rate, and shall increase or decrease with it. For a 12 month term gold loan the interest rate is 8.6% and the EMI shall be Rs. 8727 per 1 lakh loan amount. At the interest rate of 8.6%, the EMI will be Rs. 8727.

2. Loan tenure: Longer the tenure, less the EMI. At 8.6% per year interest rate, the EMI shall be between Rs. 100717 and Rs. 8727 for loan tenures between 1 month and 1 year.

The following table shall make this clearer.

	6 months	12 months
EMI for loan of 1 lakh at rate of 8.6%	17,807	Rs. 8727
Total amount to pay back	Rs. 1.03 lakh	Rs. 1 lakh 5 thousand
Interest to pay	Rs. 2522	Rs. 4724

 

FAQ

What is the age limit?
Age limit is between 21 and 65

What is the maximum loan amount?
The maximum loan amount you can get is 75% of the market value of your gold depending on quality.

What is the processing fee?
It is 0.70% of loan amount + tax on gold loan.