Union Bank of India Gold Loan
If you are wondering about finding the lowest gold loan interest rate, then Union Bank Gold Loan may be the one for you. Union Bank's gold loan interest rate starts from 8.95% per annum, and you can obtain a gold loan for agricultural, non-agricultural, and other purposes with a tenure of up to 12 months.
Apply for Union Bank of India Gold Loan @ 8.95% Interest Rate
Features of the Union Bank of India Gold Loan
The following are some of the advantages that a customer can avail by pledging the gold with the 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
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 a business or meeting working capital requirements.
- To improve agriculture by buying machinery for irrigation and other needs
- When a medical emergency strikes, a gold loan can be a saviour.
- To get urgent funds while going on a trip
- Gives the sense of using your own asset to finance your needs
Union Bank Gold Loan Interest Rate
The gold loan interest rate at Union Bank is different for different types of loan amounts. Have a look below to know the details.
| Category | Up to Rs 25 lacs | Above Rs 25 Lacs |
| Gold loan under agriculture and allied activities | 1 Year MCLR - 7.25% | 1 Year MCLR+0.10% - 7.35% |
| Gold loan under other priority sector (other than agricultural) | EBLR + 0.45% - 7.25% | EBLR + 0.55% - 7.35% |
| Gold loan under non non-priority sector | EBLR + 0.55% - 7.35% | EBLR + 0.70% - 7.50% |
| Union Krishi Kamdhenu Gold Loan Scheme | 1 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 that you want to pledge for a gold loan is measured in terms of the 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 via account transfer in no time.
Fees and Charges of Union Bank of India Gold Loan
The details about the fee and other applicable charges (also known as appraisal charges) on your Union Bank Gold Loan can be found below.
| Service Charges | Nominal 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 up to 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 the agricultural sector or the priority sector. The interest rate for amounts up to 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.
Compare Union Bank Gold Loan with Other Banks
| Parameters | Manappuram Gold Loan | Union Bank Gold Loan | SBI Gold Loan | HDFC Gold Loan |
|---|---|---|---|---|
| Gold Loan Interest Rate | 12% to 29% | 7.25% onwards | 8% onwards | 9% to 15% |
| Processing Fee | Rs 10 to be paid at the time of settlement | Up to 1.0% of the Loan Amount or Rs 1000 + GST | 0.25% of the loan amount, minimum Rs 500 | 0.50% of the loan amount |
| Loan Amount | Rs 1000 to Rs 1.5 crores | Upto Rs 25 lakhs | Rs 20,000 to Rs 50 lakhs | Rs 25000 to Rs 10 lakhs |
| Loan Tenure | 1 day to 3 months | Upto 12 months | 3 months to 36 months | 3 months to 24 months |
| Lowest per Lac EMI | Rs 3120 | Rs 8664 | Rs 3120 | Rs 4570 |
| Foreclosure Charges | Nil | Nil | Nil | Zero prepayment charges post 6 months |
| EMI scheme | No | Yes | Yes | No |
| Bullet Payment Scheme | Yes | Yes | Yes | Yes |
| Overdraft Scheme | No | Yes | Yes | Yes |
Union Bank Gold Loan Eligibility
To get a 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.
Documents Required for Union Bank Gold Loan
While applying for any kind of loan, you will need to submit a list of documents set by the lender. The documents that 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 steps below carefully about getting a gold loan from Union Bank.
- Step 1 - Visit your nearest Union Bank branch that 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 up to 75% of the gold value as a gold loan by Union Bank.
FAQs
Yes, you can easily get a gold loan from Union Bank of India.
The gold loan interest rate at Union Bank starts from 8.95%.
You can get a gold loan of upto 75% to 80% of the gold’s value that you pledge at the bank.
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.
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.
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.