Oriental Bank of Commerce Gold Loan

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Oriental Bank of Commerce Gold Loan Details Updated on
Loan Amount	Rs. 25,000 to Rs. 10 lakhs
Loan Tenure	Up to 12 months (18 months in special cases)
Interest Rate	8.75% onward

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:

Loan Amount	Rs. 25 thousand to Rs. 10 lakhs.
Purpose	You can take a loan for agriculture and allied activities. Also, the funds are available for other purposes such as marriage, medical emergency, unforeseen expenses, education, and more.
Security	You can pledge gold jewellery and minted coins by any scheduled bank, as well as that of the lending bank. The weight of the gold coins, in this case, must not go over 50 grams per borrower.
Eligibility	Rs. 25,000 to Rs. 10 lakhs
Loan Tenure	Indian residents can apply for the funds Self-owned jewellery and bank-purchased coins acceptable Borrowers in the age group 18 years to 70 years
Margin	If bullet repayment, then the margin is 35% If interest payment scheme, then 25% is the margin
Interest Rate	Current RLLR (Repo Linked Lending Rate) is 6.80% Term Loan/Demand Loan: RLLR + 1.95% = 8.75% Overdraft: RLLR + 2.20% = 9%
Processing Fees	0.75% of loan amount + GST The charges include that for the appraisal for valuation and testing of gold jewellery
Documentation Charges	Minimum Rs. 500 to maximum Rs. 5,000 + taxes
Prepayment Charges	No charges
Valuation	The valuation of the asset is as per the current rates for 22-carat gold. The rates are updated monthly. But the bank will also accept gold below 22 carats as security. However, the value is converted in terms of 22-carat gold.
Maximum Repayment	Non-Agricultural Loans You can go for the bullet payment scheme. Here, you have to pay off the dues (interest + principal) only at the end of tenure. Or, you can opt for the regular services of interest whenever the same is applicable. You have to repay the principal amount in 12 months or as required. The Overdraft renewal is subjected to annual review. Agricultural Loans You can opt for bullet repayment. Here, you pay the principal and interest amount together with at the time of maturity. Or, you may choose the interest payment scheme. Here, the bank will charge you interest on a yearly or half-yearly basis, whichever that coincides with the crop harvesting. But the bank may ask you to adjust the payments within 12 months, or when required. You can annually renew the overdraft facility. Depending on the crop seasonality, you may get a maximum tenure of 18 months.

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.

Frequently Asked Questions About Gold loan PNB/OBC

Here are the FAQs:

1. What is the Oriental Bank of Commerce Gold Loan Facilities?

Type of facility
Non-agricultural purposes	Demand Loan Overdraft
Agricultural Purposes	Demand Loan Overdraft Term Loan

2. What is the OBC Gold Loan Security?

The bank will only consider availing of the loan if the applicant pledges gold of range 22-24 carats.
The applicant can also pledge gold coins minted by the bank weighing 20 grams per coin.
A borrower can only pledge up to 50 grams of gold coin.

3. What is the Loan Against Gold Margin?

30% is the margin set when the applicant avails the gold loan from Oriental Bank of Commerce for agriculture and farming-related activities. The funds are in form of an overdraft or demand loan. The margin is 25% when the value of the pledged asset is approved by the bank appraiser. The margin becomes 50% when it is a term loan.

4. What is the OBC Scale of Finance for Loan against Gold Ornaments?

Types of Gold	The scale of finance per gram (Net Weight)
22-carat gold ornaments	The bank will offer up to 75% of the total market value of gold as the total loan amount for the 22 carats gold ornaments if appraised by the bank.

5. What is the Gold Loan OBC Penal Interest?

If the borrower fails to make timely repayment of the gold loan, the bank will charge penal interest (erstwhile).

Up to Rs.0.25 lakhs	None
From Rs.0.25 lakhs to Rs.2 lakhs	1%
From Rs.2 lakhs to Rs.10 lakhs	2%

6. What is the Gold Loan OBC Additional Charges?

Processing Fee	0.75% of the total loan amount + GST
Paperwork charges	None
Prepayment charges	None

Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of OBC/PNB for gold loans.