The Punjab National Bank, commonly abbreviated to PNB, proudly wears the tag of India’s first Swadeshi bank. Established in 1895, the range of products and services have grown considerably over the years. Today, PNB offers a variety of financial products ranging from deposits and loans to insurance and mutual funds.
In fact, the PNB gold loan is a popular financial service that people looking for emergency funds often rely on. Read on to know all about it and for a deep dive into the key Punjab National Bank Gold Loan details.
The Punjab National Bank Gold Loan Scheme enables customers to obtain funds by pledging their gold ornaments or coins as collateral. This scheme is designed to provide quick and hassle-free access to funds for personal or business requirements, while also leveraging the value of gold assets.
With a competitive interest rate, flexible repayment options, and minimal documentation requirements, PNB's Gold Loan Scheme can be a viable option for many. You can get it if you need quick and easy access to finance.
In this scheme, the loan amount is determined by the value, purity, and weight of the gold pledged, and the borrower can avail of the loan for a tenure ranging from 3 to 36 months. If you are looking for a convenient gold scheme in India, the PNB gold scheme is something that may meet your requirements.
In addition to this, there is also the PNB sovereign gold bond scheme that you can look into if you are interested in investing in gold.
As an investor in the PNB SGB, you can avail a loan against these assets when you need funds. In fact, the attractive PNB Bank gold loan interest rate of 9.25% makes it a viable option.
However, to apply, you will need to submit basic paperwork, which are as follows:
Sovereign Gold Bonds (SGBs) are essentially securities issued by the Reserve Bank of India (RBI) on behalf of the government of India. They allow you to invest in gold without holding the yellow metal in physical form, thereby increasing the safety involved.
SGBs are issued in multiples of one gram of gold. Once the maturity period is complete, you can redeem the amount accumulated in the form of cash. PNB offers this option to all investors looking to diversify their portfolio.
If you want in a PNB gold scheme, and if you have selected SGBs as your investment of choice, it is important to know the key features of Sovereign Gold Bonds before you go ahead and invest in them.
Here are the key features of PNB Sovereign Gold Bonds:
Sovereign Gold Bonds are issued in denominations of 1 gram of gold.
If you want to make additional investments, those too will be in multiples of 1 gram of gold.
The minimum limit for purchase of SGBs is one gram.
The maximum limit in each fiscal year is 4 kg for individuals and HUFs and 20 kg for others such as trusts.
If SGBs are held jointly, the limits mentioned above will apply with regard to the first applicant.
The ceiling limit includes SGBs subscribed during their initial issuance as well as SGBs purchased in the secondary market.
For gold bonds, the nominal value is determined as the simple average of the closing price of gold of 999 purity over the last 3 working days.
For investors who apply online, the issue price is ₹50 less than the nominal value as determined above.
The tenure of these bonds is 8 years.
Premature redemption is allowed after the fifth year from the date of issue.
The PNB Sovereign Gold Bond scheme offers several advantages to investors. Here are the top benefits that you can enjoy by investing in these securities:
SGBs offer interest on the investment amount at the rate of 2.5% per annum on the nominal value.
These bonds eliminate the risk associated with handling physical gold.
They also come with the sovereign guarantee, meaning the risk of default is practically zero, making them among the safest investment options available.
Your SGBs can be used as a collateral in case you need to avail a loan later in life.
There are some eligibility criteria involved here too. Knowing these criteria can help you determine if you are eligible to invest in PNB Sovereign Gold Bonds, you can create your investment strategy accordingly:
Individuals who are residents in India can apply for these Sovereign Gold Bonds.
Charitable institutions, HUFs, trusts and universities can also apply.
An individual can also apply for SGBs on behalf of a minor child in case they are the guardian or parent of that child.
SGBs can also be held jointly by more than one individual.
The following forms are relevant if you want to apply for or hold SGBs through Punjab National Bank:
Form A - Application of SGBs
Form B - Acknowledgement receipt for the application
Form C - Holding certificate for the SGBs issued
Form D - Making a nomination
Form E - Cancellation of nomination made
Form F - Transfer of gold bonds
Apart from PNB gold bonds, another way in which you can invest in gold is through gold coins, which are also among the many PNB gold schemes available in the market today.
Check out the main features of PNB gold coins:
You can buy PNB gold coins in denominations of 5 grams, 8 grams, 10 grams or 20 grams of gold.
They come with a purity of 24 karat and carry the Assay certification.
These gold coins are of the highest quality.
Punjab National Bank (PNB) offers gold loans to farmers and individuals engaged in agricultural activities for various purposes. The Punjab National Bank gold loan for agriculture is specifically designed to meet the funding needs of farmers for agricultural purposes.
Under the PNB gold loan for agriculture scheme, individuals engaged in agricultural activities can pledge their gold ornaments, coins, or bars as collateral to avail a loan. The gold loan amount can be used for various purposes such as purchasing seeds, fertilisers, pesticides, farm equipment, and other agricultural inputs.
If you are looking for a PNB gold loan to meet any emergency fund requirements, the ‘Advance Against Gold Jewellery/Ornaments’, which is a jewel loan scheme from the bank, can help you out.
Here are the main features of the PNB Bank gold loan that you should be aware of.
The minimum amount of loan in the PNB gold loan scheme ‘Advance Against Gold Jewellery/Ornaments’ is ₹25,000.
The maximum amount you can avail is ₹10 Lakhs.
The security that you will have to offer include gold jewellery and ornaments.
The PNB gold loan interest rate for advance against gold jewellery depends on whether you take a term loan or use the overdraft facility.
The PNB Bank gold loan interest rate on a term loan in this category is repo linked lending rate (RLLR) plus BSP.
The PNB Bank gold loan interest rate on an overdraft facility in this category is repo linked lending rate (RLLR) plus BSP.
PNB Jewel Loan Scheme offers several benefits to customers who want to avail themselves of a loan against their gold ornaments, coins, or bars. Here are some of the benefits of the PNB Jewel Loan Scheme:
Easy and hassle-free loan processing: The PNB Jewel Loan Scheme offers a quick and easy loan processing mechanism, making it easier for customers to avail of a loan against their gold assets.
Competitive interest rates: The interest rates offered by PNB for its Jewel Loan Scheme are competitive, making it an affordable borrowing option for customers.
High loan-to-value (LTV) ratio: PNB typically offers up to 75% of the gold's value as a loan, subject to a maximum limit of ₹10 Lakhs. This high LTV ratio allows customers to borrow a significant amount of money against their gold assets.
Flexible repayment options: PNB offers flexible repayment options, allowing customers to choose a repayment tenure that suits their financial needs and repayment capacity.
No prepayment charges: PNB does not charge any prepayment penalties if the loan is repaid before the due date, making it easier for customers to save on interest costs.
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To apply for PNB gold bonds, you need to use Form A for the application process.
PNB offers many gold schemes for people interested in investing in gold. You can invest in gold coins and Sovereign Gold Bonds. You can also avail an advance against any gold jewellery you have in your possession.
The value of your Punjab National Bank gold loan per gram is determined by the quality and purity of the gold provided, with the bank accepting gold of 18 to 22 carats. Depending on the quality of the gold, borrowers may be able to access up to ₹5,219 per gram as part of their Gold Loan.
The Punjab National Bank gold loan interest rate is 9.25% per annum. This interest rate is determined by various factors such as the loan amount, loan tenure, and the purity of the gold pledged as collateral.
You can avail up to ₹10 Lakhs. Use a gold loan EMI calculator to assess your repayment schedule based on the chosen tenure, applicable interest rate and the borrowed amount.
The processing fee for the loan is calculated as 0.3% of the loan amount or ₹500 plus GST, whichever is higher.