Punjab National Bank Gold Loan Interest Rate – Charges, Eligibility & Complete Guide

Key takeaways:

• Punjab National Bank offers gold loans at low interest rates. 
   
• The loan amount will depend on the purity of the gold pledged by you. Then you can choose the appropriate gold loan from various loan schemes.
   
• The gold loan interest rate per gram at the Punjab National Bank  is ₹3,800 to ₹ 4,350. It is based on the current value of gold.  

Bonus tip: 

The Retail Assets Division (RAD) decided that only 22 carat gold will be accepted for approving the loans. In case, the gold is less than 22 carat then Punjab National Bank will convert the required value in 22 carat to sanction the loan. 

Imagine you want a luxury car for a trip but you don’t have money to buy the car. In this case, you gave your diamond watch as a security deposit to the lender of the car and you pay a small amount for driving it until your trip gets over.

As soon as your trip ends, the lender will check the car condition and return your diamond watch to you.

Similarly, when you apply for a gold loan at Punjab National Bank, you pledge your gold ornaments in return of the loan amount. The amount is credited to your account easily and as soon as the agreed tenure gets over and you pay the loan amount along with the interest, the bank will return your gold.

For example, you have 100gms of 22k gold of which the total value is ₹ 14,400 per gram. The PNB will give you typically 75% of that value. 

The loan amount that you will receive in your bank account will be ₹10,08,000 within 2 hours. 

What is Punjab National Bank Gold loan Interest Rate? 

Punjab National Bank offers you gold loans at lower interest rates. The loan depends on the amount as well as the purity of the gold that you want to pledge. Below is a table showing key highlights of PNB gold loan: 

Punjab National Bank offers three types of gold loan schemes with different rate of interest which are: 

At Punjab National Bank, the gold loan rate per gram is ₹3,800 to ₹4,350 based on the current rate of gold. It is applicable for 22 Carat gold possessing a loan to value (LTV) of a maximum of 75%. 

How to apply for a gold loan at Punjab National Bank? 

Below is the procedure to apply for a gold loan at PNB: 

Step 1- go to the nearest branch of PNB. 

Step 2- fill in the gold loan application. You can submit the application online on the official bank website https://pnb.bank.in/DigitalGoldLoan.html  or offline as well. 

Step 3- after submitting the application, PNB representatives will contact you shortly. The bank will first check the purity of your gold and then the appraiser fixes the value of the gold and amount. 

Step 4- complete the KYC procedure by submitting all the required documents. 

Once all your documents are verified by the bank, the loan amount will be credited to your account. 

What are the gold loan interest rates of other banks as compared to Punjab National Bank ? 

The below table shows a clear comparison between PNB’s gold loan interest rate and other banks: 
 

The table clearly shows that PNB offers lower gold loan interest rates as compared to the other banks.

How to calculate Punjab National Bank gold loan interest rate EMI? 

You can use a gold loan calculator with the following steps: 

Step 1-  Select your loan amount.

Step 2- Adjust the slider according to the number of months. 

Step 3- Adjust the slider of the interest rate or enter manually. 

After providing the above details, you will get your estimated EMIs for your gold loan. 

 
FAQs

1- Why don’t banks promote gold loans as much as personal loans even when they are secured? 

Banks do not promote gold loans as much as personal loans because gold loans are strictly regulated by the RBI and they carry lower rates of interest as compared to the personal loans. 

2-  I applied for a gold loan. The bank gave me an agricultural gold loan but I am not into farming. Do I need to worry?

No, you do not have to worry. This happened because agricultural gold loans come under PSL (Priority Sector Lending). You can go to the nearest branch and get help from the bank representative as well. 

3- which is better to choose for a gold loan between a bank and NBFC?

It is better to choose a government owned bank or any private bank because they offer lower interest rates and more safety. 

4- Today I went to the bank to renew my gold loan but after all the process the actual loan amount was again credited to my savings account instead of debiting loan annual interest, so should I keep the money or inform the bank officials?

You should immediately inform the bank. If you use or keep the money, the bank will detect it during reconciliation. They can debit or reverse the amount from your account. Therefore, informing them will help you to protect you and your loan. 

5- How much loan will PNB give per gram of gold?

For 22-carat gold, the loan value per gram is generally calculated based on the prevailing market price of gold and the bank’s Loan-to-Value (LTV) ratio of up to 75%.