PNB Gold Loan: Schemes, Per-Gram Advance, Charges & the Honest Trade-offs
Punjab National Bank lends against pledged gold at indicative rates of 8.75%–9.25% p.a., from ₹25,000 up to ₹25 lakh, with tenures of up to 12 months (renewable) — no income proof, no CIBIL minimum, and per-gram advances up to about ₹8,134/g of 22k under RBI's 75% cap (today's reference). This PSU bank's full picture, tabs below.
Figures on this page are indicative and for comparison only — BankCreds is not a lender; confirm current rates, charges and eligibility with the bank or NBFC before applying.
PNB's product menu, honestly labelled
Standard pledge lending for consumption needs with EMI or demand-loan servicing — the workhorse product at north-Indian branches.
Agriculture-purpose gold lending at priority-sector pricing, documentation-light for genuine farm use.
| Indicative rate band | 8.75% – 9.25% p.a. |
| Loan range | ₹25,000 – ₹25 lakh |
| Tenures | up to 12 months (renewable) |
| Processing | 0.30% + valuation charges |
| Monthly interest / ₹1 lakh | ₹729 – ₹771 |
PNB figures are indicative; the Key Fact Statement at sanction is binding. BankCreds is not a lender.
Deeper slab math lives on the PNB interest-rate page; purity-wise advances on the per-gram page.
Advance per gram, eligibility in one breath: PNB
| Purity | Value/g* | Max advance/g (75% cap) |
|---|---|---|
| 24k | ₹11,840 | ₹8,880 |
| 22k | ₹10,845 | ₹8,134 |
| 20k | ₹9,863 | ₹7,397 |
| 18k | ₹8,880 | ₹6,660 |
2026-09-01 reference · 75% regulatory cap · PNB schemes may advance less · 85% possible on ≤₹2.5L consumption loans.
Eligibility is refreshingly boring: be 18+, own the ornaments you pledge, and carry KYC (PAN/Form 60 + Aadhaar or equivalent). PNB asks for no salary slips, no ITRs, no CIBIL threshold — the gold is the underwriting. What the appraiser establishes instead: net gold weight (stones and attachments excluded), assessed purity by assay, and ownership comfort.
Watch the net-weight line on PNB's receipt: it is the number the whole loan hangs on, and stone-heavy pieces can surprise on it.
PNB, step by step: gold in, funds out
- 1 Walk in with gold + KYC. Originals of PAN/Form 60 and Aadhaar; the ornaments; a photo. Working hours; gold-desk branches move fastest.
- 2 Appraisal in your presence. Weighing, stone deduction, purity assay at PNB's desk — insist on watching; the net-weight and purity figures being written are your loan, at up to ₹8,134/g of 22k today.
- 3 Scheme selection. This decides your rate more than negotiation will: PNB's board runs from 8.75% schemes to 9.25% max-advance ones. Ask the LTV of each.
- 4 Key Fact Statement + agreement. Rate, APR, every PNB charge, auction terms — RBI mandates the KFS before acceptance; on this counter that's where your exact slab inside 8.75%–9.25% becomes contractual. It outranks everything verbal.
- 5 Sealing & disbursal. Ornaments seal into a tamper-evident packet before you — verify PNB's itemized receipt against what went in — and funds (from ₹25,000) credit, same visit at practiced counters.
The paper list is short: identity KYC, a photograph, the pledge declaration. Gold lending's entire pitch is that the vault does the underwriting.
The one rule that outranks all others: no fee, ever, before disbursal. Appraisal and processing charges settle at sanction, on the KFS. An upfront-payment demand — at PNB's name or anyone's — is fraud wearing a lender's logo.
The PNB cost stack and its repayment menu
Charge lines to expect
- •Appraiser fee per packet
- •Documentation charge (nominal)
- •Renewal fee at 12-month rollover
- •State stamp duty
The KFS itemizes each of these before acceptance; the net-credit figure should match it to the rupee.
Repayment structures at PNB
- ✓EMI
- ✓Demand loan — interest serviced, principal on closure
- ✓Annual renewal by re-pledge
Pick the structure your cash flow can honour — a missed cycle on discipline-priced schemes can re-slab the rate, and accrued interest shrinks the cushion between your dues and your gold's value.
Safety at PNB: custody practice and auction protections
How PNB holds your gold: Sealed-packet, dual-custody strongroom storage with entries in the bank’s pledge register; the appraiser seals in your presence. PNB’s 12-month structure means most borrowers touch the packet annually at renewal — verify seals then, not just at final release.
What default cannot do at PNB: skip the written notices, the cure window, the public announcement, the market-linked reserve price, or the refund of surplus above your dues — each is a regulatory requirement, documented, and yours to demand records of.
Your protection stack: the itemized pledge receipt, the sealed packet you verified, the KFS, and the auction-notice requirements. Keep the first, check the second, read the third, and know the fourth exists.
Where PNB wins
- ✓Tight, honest rate band — the ceiling sits where private banks start
- ✓Deep north-India branch coverage, including semi-urban pockets NBFC-saturated elsewhere
- ✓Agri variants priced at the priority-sector floor
Where it falls short
- !12-month base tenure forces annual renewal ritual (fee + visit)
- !Lower maximum (₹25 lakh) than SBI or the NBFC majors
- !Appraisal capacity varies — smaller branches may schedule valuations, adding a day
Real borrowing shapes at PNB
A Ludhiana hosiery unit owner raising ₹8 lakh against family gold in September to buy yarn ahead of winter production, cleared in March from season receipts — two renewals avoided by planning the cycle.
A retired teacher in Bathinda funding a granddaughter’s admission deposit within 48 hours, choosing PNB over the neighbourhood NBFC purely on the 10-plus-point rate difference.
Is this your counter?
PNB suits the borrower who wants PSU pricing with north-Indian branch density: farm households, small manufacturers on seasonal cycles, families who’ll accept a day’s process for a single-digit rate. The annual-renewal structure rewards planned borrowing over open-ended pledges — if your loan will outlive 12 months by design, budget for the renewal ritual or pick a longer-tenure lender.
PNB gold loan cost calculator
Indicative reducing-balance arithmetic. Lender EMIs can differ with fees, rate resets and rounding.
Nearest competitors by rate floor
| Lender | Indicative band | Type |
|---|---|---|
| SBI | 8.75%–9.6% | PSU bank |
| Indian Bank | 8.8%–9.5% | PSU bank |
| Union Bank | 8.65%–9.9% | PSU bank |
PNB gold loan — FAQs
Does PNB lend against all gold jewellery?
How fast is a PNB gold loan really?
What does renewal at 12 months involve?
Can I get a PNB gold loan with no credit history?
What LTV cap applies to a PNB gold loan?
Is an advance fee before disbursal ever legitimate at PNB?
How does the auction process work at PNB?
Gold loan at PNB or a personal loan — which costs less?
PNB vs an unsecured loan: check both sides
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