Punjab National Bank Gold Loan

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.

1. Documents Required for the Punjab National Bank Gold Loan

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:

• PAN

• Aadhaar card

• Passport

• Voter ID

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. 

1. Features of Sovereign Gold Bond 2022 & 2023

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.

2. Benefits of Sovereign Gold Bond 2022 & 2023

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.

3. Eligibility for Investing in Sovereign Gold Bond 2022 & 2023

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.

4. Forms Required for SGB

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

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.

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