PNB Gold Loan

Depending on the purpose the loan is being procured for, Punjab National Bank will approve the required loan amount at a competitive interest rate.

Features of PNB Gold Loan

The following are the key features of a PNB Gold Loan:

1. Quantum of Finance: For productive purposes, there is a minimum cap of Rs.25,000 as loan amount approved by Punjab National Bank. For non-productive purposes, the maximum loan amount that is generally approved is up to Rs. 25 lakh. 
2. Loan Margin: The loan margin that has to be brought in by the borrower is 25% and 30% for bullet payment option.
3. Security: Customers have to submit gold ornaments, jewellery or coins issued by any bank while applying for the advance. When PNB approves a loan against gold coins (pledged as security), the maximum weight per coin per customer should not be more than 50 grams.
4. Valuation: As decided by the RAD, 22 carat gold will be accepted for approving loans. If the gold ornament or jewellery is lesser than 22 carat, then PNB will convert the required value into 22 carat and then sanction the loan.
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5. Repayment Tenure: Loans given for agricultural purposes can be repaid in 12 monthly installments or as two half-yearly installments. PNB will retrieve the interest on a half-yearly or yearly basis, as per the harvest season. The loan account can be adjusted to include a maximum tenure of 12 months.Loans availed for non-agricultural purposes can be repaid in 12 monthly installments or as two half-yearly installments. The interest will be levied as required and the principal has to be repaid within the 12-month tenure.