Can you tell me about the rate of interest incurred against the Agriculture Gold Loan by PNB or Punjab National Bank?

PNB or Punjab National Bank offers loans against gold ornaments, jewelry and gold coins to customers in India which is availed for productive purposes inclusive of agricultural and allied activities and for non-productive purposes like medical treatments, educational purposes and for other unplanned emergencies.

PNB Gold Loan Interest Rates

For Agriculture - Loans up to Rs. 10 lakhs
MCLR + 1.60%

Repayment Tenure

Loans given for agricultural purposes can be repaid in 12 monthly instalments or as four quarterly instalments.
Bank will recover 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.
The overdraft facility can be renewed on an annual basis.


Other PNB Gold Loan Interest Rates

For other productive purposes
MCLR + 2.60%

For Non-Productive Purposes - Loans up to Rs. 10 lakhs
MCLR + 2.60%

Non-Agricultural Repayment Tenure

Loans availed for non-agricultural purposes can be repaid in 12 monthly instalments or as four quarterly instalments.
The overdraft facility can be renewed on an annual basis.
The interest will be levied as required and the principal has to be repaid within the 12-month tenure.

PNB Gold Loan - Other Fees and Charges

Other Charges

Upfront Fees
0.70% plus service taxes

Documentation Charges
Loans up to Rs. 2 lakhs - Rs. 270 plus service taxes Loans above Rs. 2 lakhs - Rs. 450 plus service taxes

Prepayment Charges
Nil

Features of PNB Gold Loan

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

Quantum of Finance
For productive purposes, there is no cap on the loan amount approved by Punjab National Bank. For non-productive purposes, the maximum loan amount that is generally approved is up to Rs. 10 lakhs.

Loan Margin
The loan margin that has to be brought in by the borrower is 25%.

Security
One has to submit gold ornaments, jewellery or coins issued by any bank while applying for the advance. When Bank approves a loan against gold coins (pledged as security), the maximum weight per coin per customer should not be more than 50 grams

Valuation
As decided by the RAD, 22 carat gold is accepted for approving loans.
If the gold ornament or jewellery is lesser than 22 carat, then Bank convert the required value into 22 carat and then sanction the loan.