Union Bank Gold Loan Interest Rate

The gold loan interest rate at Union bank is different for different types of loan amount. Have a look below to know the details 

CategoryUpto Rs 25 lacsAbove Rs 25 Lacs
Gold loan under agriculture and allied activities1 Year MCLR - 7.25%1 Year MCLR+0.10% - 7.35% 
Gold loan under other priority sector (other than agril)EBLR + 0.45% - 7.25%EBLR + 0.55% - 7.35%
Gold loan under non priority sector EBLR + 0.55% - 7.35%EBLR + 0.70% - 7.50%
Union Krishi Kamdhenu Gold Loan Scheme1 Year MCLR - 7.25%Not Applicable

The Union Bank Gold Loan interest rate depends on the scheme under which you are taking the gold loan. Thereafter the ornament or gold product which you want to pledge for a gold loan is measured in terms of purity of gold. Once that is done, you get the eligible amount and the gold loan interest rate at the Union Bank branch itself. You will instantly get the loan amount either in cash or account transfer in no time.

Fee and Charges of Union Bank of India Gold Loan

The details about  fee and other applicable charges (also known as appraisal charges) on your Union Bank Gold loan can be found below.

Service ChargesNominal charges of Rs.100/-
Appraisal Charges

Appraisal charges of 0.40% of loan amount with a maximum cap of Rs.500/and minimum of Rs. 100 /- per case are to be recovered from the borrower.

The appraiser fee shall be recovered from the borrower. In cases where appraisal exercise is initiated in a standard account by the Bank for the purpose of authentication of original appraisal, the charges will be borne by the bank.

The above appraisal charge is the ceiling limit for payment of fees. However, Regional Heads are empowered to prescribe lower fees at Branches in their region for renewal as well as new accounts based on the prevailing competitive situation at local level.

Types of Gold Loan Offering by Union Bank

Union bank of India gold loan can be availed under different schemes which are particularly tailored for different types of people with different types of requirements.

Union Bank Gold loan for Agriculture and allied activities

This loan is mostly availed by farmers and people who are dependent on agriculture and related activities. The starting gold loan interest rate for this type of loan upto Rs 25 lakhs is 7.25%. Whereas for amounts higher than Rs 25 lakhs, the interest rate of gold loan at Union Bank of India is 7.35%.

Gold loan for priority sectors (other than agriculture)

This scheme is for people who are not related to the agriculture sector in general but are associated with other priority sectors like manufacturing, pharmaceutical, mining etc. The gold loan interest rate for amounts lower than Rs 25 lakhs is 7.25% and for amounts higher than Rs 25 lakhs is 7.35%.

Gold loan for non-priority sector

This scheme can be availed by people who are not working in either agricultural sector or priority sector. The interest rate for amounts upto Rs 25 lakhs is 7.35% and for amounts more than Rs 25 lakhs is 7.50%.

Union Krishi Kamdhenu Gold Loan Scheme

The main objective behind this scheme is to provide hassle-free credit to farmers to meet the emergency requirement for income generating agriculture, allied activities and food & agro processing activities. The maximum loan amount that can be availed using this scheme is Rs 25 lakhs.

Assessment of Union Bank Gold Loan Amount

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;


80 % of the appraised value of Gold Ornaments of 22 carat fineness;


Amount eligible based on the per gram rate fixed by the bank for 22 carat fineness (daily price data and the Quantum of Gold Loan/Per gm to be taken from link created in UBINET).

Whichever is lower

Specially minted gold coins sold by any Bank (24 carat fineness) shall be treated as gold ornaments for loan assessment purposes.

Eligibility for Union Bank Gold Loan

In order to get gold loan from Union Bank, you need to fulfill below eligibility criteria -

  • Any individual owning gold ornaments/Jewelry/Coins, either singly or jointly.
  • Pawnbrokers, Jewelers & Jewelry shop-owners are not eligible for Gold Loan.
  • Loans can be granted against Gold Ornaments/Jewelry and specially minted pure gold coins sold by our bank/other Banks. The weight of the coin(s) should not exceed 50 grams per customer.

Features of Union Bank of India Gold Loan

Following are some of the advantages that a customer can avail by pledging the gold with Union Bank of India gold loan.

  • Hassle-free application
  • Minimal documentation
  • Attractive interest rates
  • Quick disbursal within an hour
  • Standard loan amount against the value of the gold
  • Secure storage

Purpose of Union Bank Gold Loan

  • Agriculture: Gold loans for meeting crop production expenses and/or for creation of assets to be used in farming operations or for allied agricultural activities like diary, poultry, fisheries etc and other agri related activities.
  • Loans for day to day working capital requirement of business units, petty trade, purchase of business tools, furnishing of business premises, purchase of furniture & fixtures etc..
  • Consumption loan: Gold loans for consumption purposes are sanctioned to meet unforeseen expenses / contingencies / expenses for medical treatment/ for marriage and other ceremonies / expenses, for education/business needs, etc.

Benefits of Union Bank Gold Loan

A Union bank gold loan gives immediate help in times of emergencies as it helps an individual get cash within a day. The loan can be used for any of the following purposes and more:

  • Gold loans can be taken to fund the education of children.
  • It can be useful for expanding business or working capital requirements.
  • To improve the agriculture by buying machineries for irrigation and other needs
  • When a medical emergency strikes, a gold loan can be a saviour.
  • To get urgent fund while going on a trip
  • Gives the sense of using an own asset to finance your needs

Compare Union Bank Gold Loan with Other Banks

ParametersManappuram Gold LoanUnion Bank Gold LoanSBI Gold LoanHDFC Gold Loan
Gold Loan Interest Rate12% to 29%7.25% onwards8% onwards9% to 15%
Processing FeeRs 10 to be paid at the time of settlementUp to 1.0% of the Loan Amount or Rs 1000 + GST0.25% of the loan amount, minimum Rs 5000.50% of the loan amount
Loan AmountRs 1000 to Rs 1.5 croresUpto Rs 25 lakhsRs 20,000 to Rs 50 lakhsRs 25000 to Rs 10 lakhs
Loan Tenure1 day to 3 monthsUpto 12 months3 months to 36 months3 months to 24 months
Lowest per Lac EMIRs 3120Rs 8664Rs 3120Rs 4570
Foreclosure ChargesNilNilNilZero prepayment charges post 6 months
EMI schemeNoYesYesNo
Bullet Payment SchemeYesYesYesYes
Overdraft SchemeNoYesYesYes

Documents Required for Union Bank Gold Loan

While applying for any kind of loan, you will need to submit a list of documents fixed by the lender. The documents which you will need for the Union Bank of India Gold Loan are mentioned below.

  • Two Passport Size Photographs
  • Duly-signed Application Form
  • D. P. Note
  • Pledge of Gold Ornaments
  • Appraisers Valuation Report
  • Letter of Continuity in case of CC/Overdraft Facility

Process to apply for Union Bank Gold Loan

The process is quite simple and does not involve any complexities at all. Do read the below steps carefully about getting gold loan from Union Bank.

Step 1 - Visit your nearest Union Bank branch which gives gold loans

Step 2 - Present the jewellery that you want to pledge at the store where its value will be decided after validation of purity.

Step 3 - Receive upto 75% of the gold value as gold loan by Union Bank.

Gold Loan offers from India’s most
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Get Gold Loan with No EMI Option from Rupeek

Rupeek Gold Loans are instant secured loans with no EMI option at interest rate starting at 8.88% p.a. You can avail of emergency loan ranging from Rs 50000 to Rs 20 Lakhs against gold jewellery, coins & ornaments. With bullet repayment option you repay entire loan at the end of the tenure.

Union Bank of India Gold Loan FAQs

Can we get a gold loan from Union Bank of India?


Yes, you can easily get a gold loan from Union Bank of India.

What is the gold loan interest in Union Bank?


The gold loan interest rate at Union Bank starts from 7.25%. 

How long does it take for a gold loan?


After your gold is verified and its value is decided then it would take hardly 1 hr for you to get your desired amount at your disposal.

What is the process of a gold loan?


Step 1 - Visit your nearest Union Bank branch which gives gold loans
Step 2 - Present the jewellery that you want to pledge at the store where its value will be decided after validation of purity.
Step 3 - Receive upto 75% of the gold value as gold loan by Union Bank

How much loan can I get on gold?


You can get a gold loan of upto 75% to 80% of the gold’s value that you pledge at the bank.

Is a gold loan a term loan?


A term loan is a monetary loan that is repaid in regular payments over a set period of time. Gold loans on the other hand are short term loans where the tenure can be between 6 to 12 months for repayment.

How is gold loan interest calculated?


The gold loan interest is calculated depending on the purity of gold that is given as a pledge to the bank. If the purity is higher then chances are that you will get a lower interest gold loan whereas in case of low purity gold ornaments you tend to get a higher rate of gold loan interest rate from the lender.

How do I repay my gold loan?


Primarily you can

  • For  Agriculture: The repayment period may be fixed as per anticipated harvesting and marketing period for the crops for which loan is granted. For demand loans, repayment period should be fixed based on the income generation coinciding with harvest and marketing time, total period not exceeding 18 months.
  • For term loan, the repayment period of the loan should be fixed in line with the term loan purposes but not exceeding three years coinciding with harvesting and marketing season generation of income from the activity.
  • Non Agriculture purposes :Tenor of loans shall not exceed 12 months from date of sanction.

What is the interest of 1 lakh gold loan?


The total interest that you will accrue in course of paying for your Rs 1 lakh gold loan is Rs 3970. Provided the rate of interest is 7.25% and tenure 12 months.