Product Details
Name of Bank
Punjab National Bank
Maximum Loan Amount
INR 25 Lakhs
Interest Rate
9.25%
Loan to Value Ratio
80%
Maximum Loan Tenure
Upto 12 Months
ADVANCE AGAINST GOLD JEWELLERY/GOLD ORNAMENTS
Demand loan – Bullet repayment
Demand Loan - EMI BASED
Overdraft
Fees and Charges
Loan Processing Charges- Rs. 500 + GST
Prepayment Interest / Foreclosure Charges- and 2% of the outstanding loan amount.
Late Payment Penalty: Rs. 100 per day
Penal Interest- no info. available
Legal And Other Charges: Actual charges
Minimum CIBIL Score
Not required
Eligibility
A person resident of India, being an individual in his capacity as individual or on behalf of minor child, or jointly with another individual. Trust, HUF, Charitable Institutions and University.
Fees and Eligibility
Concession and Features
Special Concession
N/A
Special Features
None
Pros
The interest rates are typically lower than other types of loans. The loan amount is based on the value of your gold jewellery, so you can usually get a higher loan amount than with other types of loans. The repayment period is typically longer than other types of loans, so you have more time to repay the loan. You can get the loan quickly and easily, without having to go through a lot of paperwork.
Cons
You have to risk losing your gold jewellery if you are unable to repay the loan.
Pros & Cons
How to Open?
Application process: Visit any Punjab National Bank branch. Collect and fill out the application form. Attach the required documents. Submit the completed application form and documents to the bank official. The bank official will assess the gold jewellery/gold ornaments and determine the loan amount. Once the loan amount is finalized, the bank official will generate a loan agreement. Sign the loan agreement and receive the loan amount.
Documents Required
Documents required: Application form Two passport size photographs Proof of identity (Aadhaar card, Voter ID card, Passport, Driving License) Proof of address (Aadhaar card, Voter ID card, Passport, Driving License, Utility bills) PAN card (if applicable) Gold jewellery/gold ornaments to be pledged
Account Opening and Procedure
Indian Bank
Indian Bank Jewel loan provides two loan schemes
1. Bullet Repayment
2. Monthly Repayment
The interest rate varies from 8.65% to 9.00% which is moderate as compared to different banks offering gold loans. However, the LTV Ratio is low i.e., only 65-70%, the other banks in the market offer higher LTV Ratio on the gold loans. Therefore, before applying for such loan check the terms and conditions properly and compare different banks offering gold loans.
Abhijeet Saxena
Abhijeet Saxena
Nalsar University of Law
Ex- Senior Associate, Shardul Amarchand Mangaldas, Delhi
Ex - Khaitan & Co. Bengaluru,
Ex - National Stock Exchange, Mumbai,
Ex - Argus Partners, Mumbai