Public sector bank Punjab National Bank (PNB) on November 8, 2023 launched the PNB Digital Gold Loan scheme. The digital lending solution launched during the bank’s Digital Mahotsav event aims to provide a hassle-free credit to customers to quickly meet their personal as well as agriculture credit requirements by using gold jewellery and/or ornaments as collaterals.
The two schemes have been named PNB Gold Loan for the retail segment and PNB Swarnim for the agriculture segment.
The PNB Digital Gold Loan scheme allows individuals to borrow amounts ranging from Rs 25,000 to Rs 25 lakh for personal needs. Additionally, the loan is available for supporting agriculture or allied activities.
Borrowers seeking short-term production and/or investment credit for agriculture activities, such as crop production, land-based activity other than crop cultivation, irrigation, and allied agriculture activities are eligible for loans of minimum Rs 10,000 to maximum Rs 2 lakh.
One key feature of PNB Digital Gold Loan is its streamlined digital process, covering everything from loan application, loan acceptance to loan account opening, security creation, documentation and disbursement, thus eliminating paperwork hassles.
According to the bank’s website, the loan’s margin, determining the percentage of the loan amount that is kept with the bank against the value of the pledged gold jewellery and/or ornaments, is as follows:
If the borrower opts for a demand loan with bullet repayment, the margin is 30 per cent. For demand loan with equated monthly instalment (EMI)-based repayment, it is 25 per cent, while for overdraft facility it is 25 per cent.
The repayment through bullet payment, allows the payment of interest and principal at maturity within a maximum repayment period of 12 months.
Atul Kumar Goel, managing director and CEO, Punjab National Bank said the PNB Digital Gold Loan scheme offers a modern banking experience with competitive interest rates.
“Our bank extends its wings to the realm of gold loans through the existing gold loan products i.e., PNB Swarnim under agriculture segment and PNB Gold Loan under retail segment,” he said.
Many other products and services were unveiled during the event. A range of digital offerings such as Pre-Approved Personal Loan (PAPL), Pre-Approved Business Loan (PABL), E-GST Express, Krishi Tatkal Rin, Digi Home Loan, and several other digital offerings were also on display at the event.