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PNB Gold Loan Interest Rate

Last Updated 19th Sep 2017

PNB Gold Loan Interest Rates Sep 2017

Interest Rate 10.75% - 11.75% Check Best Offers
Repayment Options EMI Scheme, Bullet Repayment Scheme, Overdraft Scheme
Loan Tenure 12 months
Loan Amount Rs. 1,000,000
Processing Fee upfront fees of 0.70% of loan amount + taxes
Prepayment Charges Nil
Apply Gold Loan @ 10.50%*

PNB Gold Loan

Gold Loans are loans availed by pledging your gold ornaments with a bank. PNB gold loan can be taken for meeting urgent personal expenses like children education, marriage and other financial emergencies in the family as well as for business purposes. The gold mortgaged itself acts as a security to the loan. Taking a loan from PNB has the following benefits:

  • Pan India presence with a large branch network
  • Reasonable rate of interest

Gold loan interest rate of depends upon

  • Loan Amount: The amount of gold loan you can avail depends the weight of jewelry you can pledge with the bank. Generally, banks offer a jewel loan per gram of gold which differs by the purity of gold and loan to value ratio offered. Banks offer lower interest rates for higher amount. PNB offers loan Rs. 1,000,000 amount.
  • Relationship with the Bank: PNB offers special rates, offers and charges to the existing account holders of the bank. Those who have made their payments on time in the past can get the benefit of low gold loan interest rate from PNB. Bank offers jewel loan at rates of 10.75% to 11.75%.
  • Loan tenure: Many banks charge higher rate of interest for gold loans of lower tenure and lower interest rate for gold loans of higher tenure. PNB offers gold loan with a tenure of to 12 months.
  • Loan to Value ratio: Maximum loan to value ratio on gold jewelry has been fixed at 75% by RBI. However, PNB also offers loans at lower LTVs. Interest rate on loans with lower LTV will be lower compared to loans with higher LTV. Maximum LTV offered by PNB is 75% calculated on net weight of gold in your jewelry.
Other Charges

In addition to interest rates, Gold loan PNB also carry some other charges which include:

  • Processing fees – PNB charges minimum processing fees upfront fees of 0.70% of loan amount + taxes. To get lowest fee, gold loan interest rates comparison, offers and cashback applying online through MyLoanCare.
  • Prepayment and foreclosure – Banks typically levy prepayment or foreclosure charges i.e. Nil.

PNB Gold Loan per gram

Your gold loan amount eligibility is measured in terms of gold loan rate per gram you will get on the basis of the weight and gold price of your jewelry adjusted for loan to value ratio.

Gold loan per gram is determined by multiplying the weight of gold by price of gold as adjusted for purity and LTV (loan to value) offered by PNB. For a 22 carat gold jewelry of 10 gram and a maximum LTV of 75% you can get a gold loan per gram of Rs. 2,079 from PNB

The table below gives the key loan parameters of Gold Loan PNB

Eligibility Criteria
Age Any individual with an age of 18 years and above
Profession Salaried, self-employed professionals and businessmen. Gold loans are available for agriculture and non-agriculture purposes
Loan Amount Rs. 0 to Rs. 1,000,000
LTV Upto 75% of gold. Some schemes are offered at lower LTVs as well
Quality of gold Gold ornaments should range in between 18 to 24 Carats
Type of gold accepted as security Gold ornaments with 18 carat purity and bank's special minted coins upto 50 grams weight
Gold Price Average gold price of 22 carat gold of past 30 days. Average price of 10 gm 22 carat gold for past 30 days is Rs. 27,724

Your loan eligibility calculated as gold loan per gram for PNB is calculated based on the following parameters:

  • Quantity and quality of gold pledged: Gold loan per gram depends upon the weight and assessment of purity of the gold jewelers that is being pledged. Gold ornaments Carat-age should be in the range of 18 to 24 Carats. Both hallmarked jewelry and non-hallmarked jewelry can be used for availing jewelry loan.
  • Gold loan rate per gram: PNB will value the jewelry based on price of 22 carat gold adjusted for purity. PNB use thirty days average rates of 22 carat gold prices. You can also check today gold rate at MyLoanCare
  • Form of gold pledged: You can get loan from PNB against jewellery or ornaments with a purity of 18 carats or more and specially minted gold coins with a weight of up to 50 grams. You will not be eligible for loan against gold bars, ETFs (exchange traded funds), specially minted coins of more than 50 grams and ladies mangal sutra.
  • Purpose for which loan is used: You can use the loan from PNB for personal, business and agricultural purposes. However, PNB does not allow to use gold loan for speculative purposes such as purchase of gold coins, jewels, land, and investment in stocks, futures and options.

PNB gold loan per gram for 18 carat, 20 carat and 22 carat jewelry

The following table gives an approximate estimate of gold loan per gram PNB will offer against gold jewelry of different purity levels at a maximum LTV of 75% and lower LTV of 65%.

Gold Purity Gold rate per gram- average of past 30 days PNB best Gold Loan per gram PNB lowest Gold Loan per gram
22 carat 27,724 2,079 1,802
20 carat 25,204 1,890 1,638
18 carat 22,684 1,701 1,474

The above table shows the method by which PNB will calculate your per gram gold loan for gold of varying purity.

  • Gold loan per gram in PNB offer for 22 carat jewelry will be between Rs. 1,802 to Rs. 2,079
  • PNB gold loan per gram offer for 20 carat jewelry will be between Rs. 1,638 to Rs. 1,890
  • Gold loan per gram offer of PNB for 18 carat jewelry will be between Rs. 1,474 to Rs. 1,701

Gold Loan Schemes of PNB

PNB offers several gold loan products to meet your various product requirements. These include loans with different repayment options

    PNB Loan Calculator

    Eligibility or gold loan per gram is completely dependent on the assessment of weight and purity of the gold jewelry that is being pledged. Once you approach a bank or a gold loan company, it will conduct a valuation of your gold jewelry and then apply a LTV of up to 75% of the calculated value of the jewelry to be pledged to arrive at the eligibility. The value of gold jewelry and the eligibility is calculated based the following steps:

    Step 1: The bank or financial institution will test the level of gold purity and adjust the price of pledged gold in proportion of its purity.

    Purity of gold is defined in carat, which means parts of gold. A 100 % pure gold is defined as 24 carat gold. So, 18 carat gold would mean an 18 carat of gold mixed with 6 carat of other metals.

    The bank or gold company will adjust the value (price of gold) of jewellery for its purity. The price of 22 carat gold of last 30 days will be adjusted proportionately for the purity of gold pledged. For instance, the value/price of a 18 carat gold will be calculated by multiplying the average price of 22 carat gold for the last 30 days by multiplying it by 18/22.

    Banks use 30 days average rates of 22 carat gold prices as directed by RBI. The rates used are as published daily by Bombay bullion's association.

    Step2: Weight of gold jewellery is netted off for weight of stones and gems

    The bank will measure the net weight of your gold jewellery by deducting the weight of the stones and gems that have been used in the gold jewellery. So, if you intend to use your diamond jewellery for pawn, the bank will deduct the weight of diamond from the total weight of the jewelry to calculate the net weight of gold in your jewelry.

    Step 3: Bank will calculate the value of the jewellery as eligible for loan and apply a LTV to arrive at your gold loan amount eligibility

    The bank will calculate the value of the jewellery to be pledged by multiplying the net weight of your gold jewellery as calculated in Step 2 above with the adjusted price of gold as calculated in Step 1 above.
    The bank will then apply a LTV to the calculated value of jewelry to calculate your eligibility.
    Banks are allowed to lend at a maximum LTV of 75%. However there are multiple schemes with LTVs between 60 - 75% on offer by leading loan providers. Higher the LTV, higher the interest rate charged.

    PNB Gold Loan EMI Calculator

    Gold Loan EMI of PNB is a fixed amount that you pay each month towards the repayment of your jewel loan. Lowest EMI offered by PNB is Rs. 8,827 per lakh loan amount at lowest gold loan interest rate of 10.75%. Gold loan EMI of PNB depends upon:

    • Rate of interest: Higher the interest rate, higher will be the EMI. For a 12 months gold loan from PNB at interest rate of 10.75% per annum, EMI will be Rs. 8,827 per Rs. one lakh loan amount. At interest rate of 11.75% for the same loan, the EMI will be Rs. 8,873
    • Loan tenure: Longer the loan tenure, lesser your monthly EMI. At 10.75% per annum, the EMI would range from Rs. 0 to Rs. 8,827 for loan tenure ranging from to 12 months

    Use EMI Calculator to calculate your interest on gold loan at different tenure

    Gold Loan EMI for Rs. 1 Lakh loan amount at lowest 10.75% interest rate offered by PNB for different tenures
    6 months 12 months
    PNB EMI for a loan amount Rs. 1 lakh at 10.75% 17,193 8,827
    Total amount you pay back to the bank including principal and interest 103,158 105,924
    Interest you have to pay over loan tenure 3,158 5,924

    As you can see in the above table that longer the loan tenure, lower is the EMI you pay on gold loan. However, your total interest outgo is significantly higher in case of long tenure loan. In the above example, if you take a Rs. 1,00,000 loan for a period of 12 months, the lowest EMI you will pay of Rs. 8,827. However, you pay an interest of Rs. 5,924 on a Rs. 1,00,000 loan.

    In comparison, if you take a Rs. 1,00,000 loan from PNB at the lowest interest rate for a period of 6 months, your monthly EMI will be as high as Rs. 17,193 and pay an interest of only Rs. 3,158 which is less than what you paid in a 12 months loan. Hence, you must choose your loan tenure wisely as longer tenure leads to high interest cost.

    Documents Required for PNB Gold Loan

    The documentation process of PNB is smooth. You need to submit one proof of identity and one proof of address to get a gold loan. The list of identity and address proofs are as follows:

    • Identity proof: PAN Card, Driving License, Passport, Voter’s ID Card, Aadhar Card
    • Address proof: Voter’s ID Card, Aadhar Card, Rent Agreement, Utility Bills, Bank Statement

    Compare Gold Loan Interest Rates of PNB with other banks

    Frequently Asked Questions on PNB Gold Loan

    How much interest is charged by PNB on gold loan?

    PNB gold loan interest rates today are 10.75% to 11.75%.

    What is the lowest EMI per lakh on PNB gold loan?

    If you apply for loan against gold from PNB, your lowest EMI per lakh will be Rs. 8,827.

    What is the minimum and maximum tenure of PNB jewel loan?

    You can repay your jewel loan from PNB in a flexible period of maximum 12 months.

    How much gold loan amount I can borrow from PNB?

    PNB offers you loan against gold if you need a maximum amount of Rs. 1,000,000.

    How much processing fee is charged by PNB on jewel loan?

    PNB charges a processing fee on gold loan- upfront fees of 0.70% of loan amount + taxes

    Are there any prepayment charges on gold loan?

    Yes, you can prepay your jewel loan. Applicable prepayment charges - Nil.

    Is gold loan PNB available online? Is there a PNB gold loan online payment facility?

    No, you cannot avail gold loan online in PNB. Yes, the bank offers PNB gold loan online payment facility.

    Pnb Gold Loan

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