Union Bank of India Gold Loan

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

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

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.

Limit under Gold Loans is to be assessed as under:

Loan amount requested by Applicant/assessed amount on declaration;

OR

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

OR

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.

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.

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

• 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.

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

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

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.