Oriental Bank of Commerce (OBC) Gold Loan and Punjab National Bank (PNB) Gold Loan is available for agriculture and related activities, as well as personal expenses. The maximum amount to borrow is Rs. 10 lakhs. The interest rate is according to the Repo Linked Lending Rate + applicable rate. The starting rate for a jewel loan is 8.75%. It is ready to finance, quickly sanctioned in a hassle-free manner. Tenure is flexible for up to a year. But depending on the seasonality of the crop, the same is may extend up to 18 months.

NOTE: OBC was merged with PNB on 1 April 2021. So, the erstwhile OBC scheme no longer exists for new borrowers. You need to apply for a jewel loan as per the scheme offered by PNB.

In the following post, we will discuss OBC/PNB gold loan features, interest rates, documents required, features of the old scheme, and frequently asked questions.

Features of OBC/PNB Gold Loan (Current Scheme)

Here are the details of Punjab National Bank or Oriental Bank of Commerce Jewel Loan:

Oriental Bank of Commerce Gold Loan Interest Rates

The OBC Gold Loan interest rate depends on various factors. The interest rate before OBC was merged with Punjab National Bank, was 10.85%. The bank has the right to change its interest rates and borrowers have to clarify with the bank about the existing bank rate. As per the current update, the PNB Gold Loan Interest Rate is based on RLLR:

• The RLLR, for the time being, is 6.80%. But this may change from time to time. So, it is best to keep a check on the bank page for updated information.
• Term Loan/Demand Loan: RLLR + 1.95% = 8.75%
• Gold Loan Overdraft: RLLR + 2.20% = 9%

Documents to Apply for PNB/OBC Gold Loan

• Documents for Existing Customers:

The bank will ask the applicant to provide his/her KYC (know your Customer) documents to process his/her application for a loan against gold. On the other hand, those who are already existing customers with the bank will not have to provide any KYC documents.

• Documents for New Customers:

Those who are the new customers have to provide their identity proofs (self-attested copies) like Passport, Aadhaar card, PAN card, Ration Card, rental agreement, Driving License, and electricity/telephone/water bill. Also, the applicant has to carry the original documents along with the self-attested copies for verification.

Along with the mentioned documents, the applicant has to also provide his/her two recent passport-sized photographs.

Features of Oriental Bank of Commerce Erstwhile Gold Loan Scheme

Here is more information:

• Indian citizens aged between 21-60 years can apply for a gold loan.
• Rs. 50 lakhs, the maximum loan offered by the bank after pledging the gold. In case, if the applicant is using the loan for catering to his/her agriculture requirements, the bank will grant up to Rs.10 lakhs as a loan.
• However, the bank will grant the loan depending on the actual value of the gold pledged by the borrower to the bank.
• For availing loan against gold, the bank will not charge any prepayment penalties from the borrower. This gives the borrower the freedom to repay the loan as soon as possible depending on his/her convenience.
• It is the borrower who will receive the security details of the pledged gold. The bank keeps the gold ornaments under tight security and is safe with them. The borrower receives his/her pledged loan once he/she repays the loan entirely.
• In case if the applicant avails for the Demand Loan facility for availing the gold loan, then the applicant has to repay the loan within one year of availing the loan.
• The bank may automatically renew the loan every year. But this is only applicable for those who avail of the overdraft facility. In the case of agriculturists, their loan repayment is based on the harvesting of crops.