Gold has always played an important role in Indian households. Moreover, during times of financial need, it becomes one of the easiest ways to raise funds. Keeping this in mind, Punjab National Bank (PNB) offers the Digital Gold Loan, a secure and affordable loan against gold jewellery or ornaments.
Importantly, this loan comes with repo-linked interest rates, digital disbursement, and flexible repayment options. As a result, it suits both farmers as well as retail customers.
What is PNB Digital Gold Loan?
PNB Digital Gold Loan is a secured loan where customers pledge their gold jewellery or ornaments to get instant funds. In addition, the loan process is largely digital, which saves time and effort.
Most importantly, the sanctioned amount is directly credited to the customer’s operative PNB account, ensuring quick access to funds.
This loan is available under two categories:
- Agriculture Segment
- Retail Segment
Interest Rates (Repo Linked)
One of the biggest advantages of this loan is its repo-linked interest rate structure. Because of this, customers benefit whenever the repo rate is reduced.
Agriculture Segment – Interest Rates
- Up to ₹2.50 lakh:
RLLR + BSP – 0.10% = 8.25% per annum - Above ₹2.50 lakh:
RLLR + BSP = 8.35% per annum
Retail Segment – Interest Rates
- All loan amounts:
RLLR + BSP = 8.35% per annum
However, since the rates are floating in nature, they may change whenever the RLLR is revised.
Margin Requirement
Margin is the portion of gold value that the bank keeps as security. Generally, a lower margin means a higher loan amount for the same gold.
Retail Segment – Margin
- Demand Loan (Bullet): 32%
- Term Loan (EMI): 28%
Agriculture Segment – Margin
- Demand Loan (Bullet): 15%
Therefore, farmers enjoy a clear advantage, as they can borrow more against the same quantity of gold.
Loan Tenure & Repayment Options
PNB offers flexible repayment options. As a result, borrowers can choose a plan based on their income pattern.
Agriculture Segment
- Demand Loan (Bullet): Maximum 12 months
Retail Segment
- Demand Loan (Bullet): Maximum 12 months
- EMI-based Loan: Maximum 36 months
In other words, customers can either repay the loan in one go or spread it over monthly EMIs.
Security
- Pledge of Gold Jewellery / Ornaments
At the same time, the pledged gold remains safe with the bank and is returned once the loan is fully repaid.
Disbursement Process
The loan amount is digitally disbursed into the customer’s operative PNB account. Consequently, there is no delay in receiving funds.
Processing / Upfront Fees
Agriculture Segment
| Loan Amount | Processing Fee |
|---|---|
| Up to ₹50,000 | NIL |
| Above ₹50,000 up to ₹2 lakh | ₹500 + GST |
| Above ₹2 lakh | 0.30% of loan amount + GST |
Retail Segment
- 0.30% of loan amount + GST, or
- ₹500 + GST, whichever is higher
Thus, the fee structure remains transparent and affordable.
Documentation Charges
- Agriculture Segment: NIL
- Retail Segment: NIL
As a result, borrowers save additional costs during loan processing.
Valuation Charges (Retail Segment)
| Loan Amount | Valuation Charges |
|---|---|
| Up to ₹5 lakh | ₹3 per thousand + GST (Maximum ₹500 + GST) |
| Above ₹5 lakh | ₹1,000 + GST |
Clearly, valuation charges are capped to avoid excessive cost.
Purpose of Loan
Agriculture Segment – Permitted Uses
The loan can be used for:
- Crop production
- Land-based activities other than crop production
- Allied agriculture activities
- Repayment of loans taken from non-institutional lenders
Hence, it supports farmers in both production and investment needs.
Retail Segment – Permitted Uses
- Personal or household needs
- Any non-agricultural purpose
Therefore, the loan remains flexible for everyday financial requirements.
Why Choose PNB Digital Gold Loan?
- Low repo-linked interest rates
- Fast and digital disbursement
- Bullet or EMI repayment options
- Lower margin for agriculture borrowers
- No documentation charges
- Backed by a trusted public sector bank
PNB Digital Gold Loan is an excellent solution for anyone looking for quick liquidity at affordable interest rates. Whether you are a farmer or a retail borrower, this loan offers a perfect balance of safety, speed, and savings. Overall, it stands out as a reliable gold loan option in India.
PNB Digital Gold Loan – FAQs
PNB Digital Gold Loan is a secured loan offered by Punjab National Bank where customers can get instant funds by pledging gold jewellery or ornaments. The loan amount is digitally credited to the customer’s operative PNB account.
The interest rate starts from 8.25% per annum for agriculture loans up to ₹2.50 lakh. For higher amounts and retail loans, the rate is 8.35% per annum, linked to the Repo Linked Lending Rate (RLLR).
Both agriculture and retail customers can apply. Farmers can use it for crop production and allied activities, while retail customers can use it for personal or non-agricultural purposes.
The maximum tenure is 12 months for demand loans (bullet repayment). Retail customers can also opt for EMI-based repayment with a maximum tenure of 36 months.
There is no documentation charge for both segments. Processing fees vary based on loan amount and segment, starting from NIL for agriculture loans up to ₹50,000.
The sanctioned loan amount is digitally disbursed into the customer’s operative PNB account, ensuring fast and hassle-free access to funds.
Rajil M P is a seasoned banking professional with over eight years of experience in the Indian banking sector. He has successfully completed the JAIIB and CAIIB examinations conducted by the Indian Institute of Banking & Finance (IIBF), reflecting his strong academic foundation and practical expertise in banking, finance, and risk management. He is the founder and editor of IndianBanker.com, a trusted platform focused on banking news, exam preparation, financial updates, and practical tools for banking aspirants, professionals, and informed readers. Drawing from real-world banking experience, Rajil simplifies complex topics such as interest rates, loans, deposits, RBI policies, and government schemes, making them easy to understand and apply.
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