Punjab & Sind Bank Gold Loan Calculator 2026
PSB gold loan interest rates start from 9.2% p.a. up to 9.3% p.a. — verified directly against official PSB schedules. Calculate eligible loan amount per gram, monthly EMI schedule, and compare lender charges below.
PSB Gold Loan Rate Card & Key Terms
Official retail loan schedule • Verified on Aug 2026
Available PSB Gold Loan Schemes:
Verified against official records on Aug 2026.
| Particulars | Amount |
|---|---|
| Gold Value | ₹1,40,000 |
| Loan Amount | ₹0 |
| Monthly Interest | ₹0 |
| Total Interest | ₹0 |
PSB Gold Loan Per Gram Rate Today (2026)
With 22 carat gold at about ₹14,256 per gram, a PSB gold loan fetches roughly ₹10,692 per gram of 22K gold at 75% loan-to-value. Expected loan amount per gram by purity:
| Gold Purity | Market Rate (per gram) | PSB Loan per Gram (75% LTV) |
|---|---|---|
| 24 Carat (24K) | ₹15,552 | ₹11,664 |
| 22 Carat (22K) | ₹14,256 | ₹10,692 |
| 18 Carat (18K) | ₹11,664 | ₹8,748 |
Example: 10 grams of 22K jewellery is worth about ₹1,42,560 today, so PSB would lend roughly ₹1,06,920. Calculated at the standard 75% LTV ceiling mandated by the Reserve Bank of India (RBI) for commercial bank gold loans. Figures are indicative and move daily with the market gold price - use the calculator above (it fetches today's rate) and confirm the final per-gram rate with the lender.
How PSB Compares (2026)
Gold loan rates across banks and NBFCs, sorted by lowest starting rate
| Lender | Interest Rate (p.a.) | Est. Monthly EMI | Calculated Processing Fee | Total Payable (incl. fees & interest) |
|---|---|---|---|---|
| 7.75% - 8.90% | ₹8,063 | Up to ₹1,180 | ₹4,84,960 | |
| 8.50% - 10.40% | ₹8,207 | Nil (Free) | ₹4,92,420 | |
| 8.50% - 9.25% | ₹8,207 | Up to ₹590 | ₹4,93,010 | |
| from 8.50% | ₹8,207 | NIL up to Rs. 5 lakh; above: 0.30% + GST, max Rs. 5,000 (valid to 31.03.2027) | ₹4,92,420 | |
| 8.50% - 8.90% | ₹8,207 | Up to ₹800 | ₹4,93,220 | |
| 8.50% - 22.90% | ₹8,207 | ₹1,841 | ₹4,94,261 | |
| 8.50% - 9.50% | ₹8,207 | Nil (Free) | ₹4,92,420 | |
| 8.60% - 8.65% | ₹8,226 | ₹1,416 | ₹4,94,976 | |
| 8.65% - 9.00% | ₹8,236 | Up to ₹2,360 | ₹4,96,520 | |
| from 8.95% | ₹8,294 | ₹1,416 | ₹4,99,056 | |
| 9.00% - 19.00% | ₹8,303 | Up to ₹4,720 | ₹5,02,900 | |
| 9.00% - 16.00% | ₹8,303 | Up to ₹8,000 | ₹5,06,180 | |
| 9.00% - 20.00% | ₹8,303 | ₹9,440 | ₹5,07,620 | |
| from 9.00% | ₹8,303 | ₹800 | ₹4,98,980 | |
| 9.15% - 10.10% | ₹8,332 | ₹1,416 | ₹5,01,336 |
Live figures calculated for ₹4,00,000 over 60 months. Rates and fee formulas sourced directly from each lender's official website (last verified 8 Sept 2026) and auto-refreshed. GST at 18% is added where charged by the lender.
PSB Gold Loan Foreclosure & Prepayment Guide
RBI rules, lock-in timelines, and early closure cost breakdown
Unlike unsecured personal loans where borrowers often remain locked for 3 to 5 years, gold loans are commonly used as short-term bridge financing (3 to 12 months). Borrowers frequently repay and close them ahead of schedule once expected business receivables or crop proceeds arrive. Understanding PSB's prepayment and foreclosure structure ensures you minimize total interest without surprise penalties.
As per Reserve Bank of India (RBI) circulars, banks and NBFCs are strictly prohibited from levying foreclosure charges or prepayment penalties on floating-rate loans granted to individual borrowers. For fixed-rate or short-tenure bullet loans, lenders may specify tiered preclosure terms.
Because gold loan interest is calculated on a daily reducing balance basis, making partial principal prepayments immediately curtails the interest compounding on your account. Most schemes allow partial prepayments with zero lock-in penalty.
Step-by-Step Procedure to Close Your PSB Gold Loan & Retrieve Ornaments:
- Request Closure Statement: Visit the loan-servicing branch or check online for the exact loan payoff amount including accrued interest up to the current date.
- Clear Dues: Pay the outstanding balance via net banking, UPI, debit card, or RTGS/NEFT. Ensure you receive an official zero-balance payment receipt.
- Joint Custody Vault Retrieval: The branch manager and joint custodian retrieve your sealed, tamper-evident security bag from the bank's reinforced strongroom vault.
- Physical Inspection & Weighing: Inspect the serialized seal numbers in your presence. Verify each ornament and verify the net weight matches the original appraisal receipt.
- Receive NOC / Release Acknowledgment: Sign the jewel release register and collect your official No Objection Certificate (NOC).
Gold Appraisal, Valuation & Assayer Charges Explained
Purity evaluation, stone deductions, and bank safe custody norms
When applying for a gold loan, PSB verifies the physical authenticity, carat purity, and net weight of your gold jewelry before disbursing funds. Here is what borrowers need to know about valuation fees and purity testing standards.
Net Weight vs Gross Weight: What Gets Financed?
Banks finance only the pure gold content. Any non-gold components — including gemstones, pearls, diamonds, beads, enameling (meenakari work), lac (wax fillings commonly found inside traditional bangles and necklaces), and alloy joints — are deducted entirely from the gross weight during valuation. You receive loan funding solely on the net weight of pure gold.
Non-Destructive Testing & Strongroom Vault Security
Authorized jewel appraisers use non-destructive testing methods such as touchstone testing with calibrated acids, specific gravity hydrostatic balances, or computerized X-ray fluorescence (XRF) caratometers. Once evaluated, your gold is packed in a high-security tamper-evident security pouch, sealed in your presence with registered barcode tags, and deposited into dual-custody fireproof bank vaults insured against theft, burglary, and natural damage.
RBI Loan-to-Value (LTV) Cap & Daily Price Formula
Understanding how daily gold prices translate to eligible loan amounts
Under Reserve Bank of India prudential regulations, commercial banks can lend a maximum of 75% Loan-to-Value (LTV)against gold jewelry. This 25% safety margin protects both the bank and the borrower against volatile commodity swings.
Per RBI directives, banks must value collateral using the 30-day moving average closing rate of 22K gold published by the Indian Bullion and Jewellers Association (IBJA), ensuring short-term market spikes do not distort lending caps.
What is a Margin Call & How to Protect Your Ornaments?
If market gold rates plunge sharply during your loan tenure, the ratio of your outstanding loan balance relative to the collateral value may cross the 75% boundary. When this happens, PSB sends a margin call notice giving you a cure window (typically 7 to 15 days) to either: (a) pay down a small part of the principal, or (b) pledge additional gold jewelry to restore the 75% collateral cushion.
Gold Loan Repayment Schemes Compared: Which Is Best for You?
Regular EMI vs Bullet Repayment vs Overdraft facility
| Scheme Type | Repayment Structure | Tenure | Interest Outgo | Best Suited For |
|---|---|---|---|---|
| Bullet Repayment | Pay entire principal + accumulated interest together at maturity. Zero monthly cash outflow. | 6 to 12 months | Higher (compounds till end) | Farmers awaiting crop harvest, seasonal business owners, traders. |
| Monthly Interest (Overdraft) | Pay monthly interest only. Repay principal whenever surplus cash is available, or at maturity. | 12 to 24 months | Moderate (interest serviced monthly) | SME merchants and professionals needing rolling working capital liquidity. |
| Regular EMI Scheme | Fixed monthly installment covering both interest and principal reduction. | 12 to 36 months | Lowest (principal reduces monthly) | Salaried individuals with predictable monthly income seeking structured debt elimination. |
Default Timeline, Legal Notices & Auction Safeguards
What happens if you cannot repay on time, and your rights as a borrower
Under Indian law and RBI Fair Practices Code, banks must adhere to rigorous procedural safeguards before initiating an auction of pledged jewelry. Collateral cannot be sold arbitrarily or covertly:
Reminders sent at 30 and 60 days of missed payments via registered SMS, email, and phone calls.
Account classified as NPA. Final demand notice issued granting a 14 to 30 day cure period.
Bank publishes public auction notice in at least 2 local newspapers detailing auction date and reserve price.
Any proceeds exceeding outstanding dues plus recovery costs MUST be credited back to your account.
Worked Example: ₹3,00,000 PSB Gold Loan (2026)
Transparent cost calculation based on PSB's starting rate of 9.2% p.a.
Borrower Tip: If your monthly cashflow permits, choosing the monthly EMI scheme saves you roughly ₹12,444 in total interest compared to bullet repayment, as your outstanding balance drops with each payment.
PSB Gold Loan Frequently Asked Questions
Everything you need to know about PSB gold loan rates, appraisal charges, preclosure rules, and eligibility in 2026.