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Indian Bank Gold Loan Benefits

Following are the attractive benefits of the Indian Bank gold loan or Jewel Loan scheme:

  • Multipurpose loan: Indian Bank Jewel Loan can be used for multiple domestic needs, consumption, family functions, medical expenses and any bankable activity, other than speculative ones.
  • No upper limit on the loan amount: The maximum loan amount offered under Jewel Loan is up to Rs. 10 Lakhs per borrower for the bullet repayment scheme. There is no cap on the maximum loan limit for the monthly repayment scheme. 
  • Flexible repayment tenure: The loan can be repaid in flexible tenure of 35 months under the monthly repayment scheme and up to 12 months under the bullet repayment scheme.
  • Low processing fees: A processing fee of 0.50% on the loan amount will be charged. There is no cap on the maximum processing fee amount
  • Competitive rate of interest: The gold loan interest rate is 8.25% for the bullet payment method and 8.75% for the monthly payment method.
  • Easy eligibility: Every Indian resident aged above 21 years can apply for this loan, including senior citizens.
  • Minimal documents required: You just need to provide your identity and address proof along with a duly filled-in and signed application form. 

Indian Bank Gold Loan Interest Rate

Indian Bank gold loan interest rates are floating in nature. Following are the details of Indian Bank gold loan rates of interest for different schemes:

Product NameApplicable Rate of Interest (Per Annum)

Non-Priority Jewel Loan (Repo-Linked)

Short Term (Up to 35 months tenure)8.75% 
Bullet Payment (Up to 12 months tenure)8.25%
Senior Citizens (Up to 35 months tenure)8.75%

OD Against Gold Jewels (Repo-Linked)

General Public 9.40%
Women8.90%
COVID Warriors8.90%

Types of Gold Loan Offering by Indian Bank

  • Jewel Loan: This loan can be used for domestic needs, consumption, family functions, medical expenses, or any bankable activity other than speculative purposes. This loan is further divided into 2 categories as mentioned below with their features:
    • Bullet Repayment: In this scheme, the entire loan amount is repayable at the end of tenure along with interest.
      • Loan amount: 70% of the market value of the pledged jewels or per gram advance value of jewels, whichever is lower, for loan up to Rs. 5 Lakhs. 65% of the market value of the pledged jewels or per gram advance value of jewels, whichever is lower, for loans above Rs. 5 Lakhs and up to Rs. 10 Lakhs. The maximum loan amount offered is up to Rs.10 Lakhs per borrower
      • Tenure: Maximum tenure for repayment is 12 months for this scheme.
      • Rate of interest: The Indian Bank gold loan interest rate is 8.25% p.a.
      • Processing fee: 0.50% on loan amount
    • Monthly Repayment: Under this method, the loan is repayable in monthly instalments along with interest, also known as EMIs (Equated Monthly Instalments).
      • Loan amount: 70% of the market value of the pledged jewels or per gram advance value of jewels, whichever is lower. There is no cap on the maximum loan amount
      • Tenure: Maximum tenure for repayment is 35 months for this scheme.
      • Rate of interest: 8.75% p.a.
      • Processing fee: 0.50% on loan amount
  • Agriculture Jewel Loan Scheme: This loan can be availed of to meet the short-term financial requirements of all individual farmers like crop cultivation, repairs of farm assets, allied activities like Dairy/ Poultries/ Fisheries, purchase of inputs like fertilizers/ pesticides/ seeds, repayment of debt taken from non-financial lenders, etc. This loan is further divided into 2 categories as mentioned below with their features:
    • Bumper Agri Jewel Loan: 
      • Loan amount: 85% of the market value of pledged gold jewels or scale of finance/ unit cost approved by DLTC/ NABARD, whichever is lower.
      • Tenure: Maximum tenure for this scheme is 6 months.
      • Rate of interest: An interest rate of 7% p.a. will be charged on a floating basis.
    • Other Agri Jewel loan Products 
      • Loan amount: 80% of the market value of pledged gold jewels or scale of finance/ unit cost approved by DLTC/ NABARD, whichever is lower.
      • Tenure: Maximum tenure for this scheme is 12 months
      • Rate of interest: An interest rate of 7% p.a. will be charged on a floating basis.
  • OD Against Gold Jewels: It is a new product/ overdraft facility for customers wherein an overdraft or OD limit is fixed instead of the Term Loan facility. Apart from the general public and women, this loan can also be availed of by COVID warriors to give them due respect and value for their services during this pandemic scenario. The loan can be used for any purpose. 
    • Loan amount: 75% of the market value of the pledged jewels or per gram advance value of jewels, whichever is lower. The minimum loan amount available is Rs. 25,000, and the maximum is up to Rs. 10 Lakhs.
    • Tenure: Interest to be serviced by the borrower as and when charged in the account, and withdrawals are permitted within the sanctioned limit. 
    • Rate of interest: 8.90% p.a. for women and COVID warriors and 9.40% p.a. for the general public.
    • Processing fee: 0.50% on loan amount
    • Add-on benefits: Issuance of a Rupay Card and personalised cheque books.

Eligibility Criteria of Indian Bank Gold Loan

If you want to apply for an Indian Bank gold loan, you will have to meet the following basic eligibility criteria:

  • All individuals, including senior citizens, can apply for the loan Indian Bank Jewel Loan.
  • Minimum entry age to be eligible for the loan is 21 years.
  • Applicants should not be aged above 70 years.

Documents Required for Indian Bank Gold Loan

The documents requirement for Indian Bank gold loan is minimal as mentioned below:

  • Duly filled in application form for gold loan
  • Identity proof such as Voter ID Card, PAN Card, Passport, Aadhaar Card, Driving License, etc.
  • Address proof such as Voter ID Card, Passport, Aadhaar Card, Driving License, etc.

Indian Bank  Gold Loan Calculator

You can use the Indian Bank gold loan calculator available on the internet to calculate your loan amount eligibility against your gold jewellery. This calculator will help you estimate how much loan amount you can get instantly on your gold jewellery/coins. 

To use the gold loan interest calculator, you just need to enter the loan tenure (in months), the number of gold ornaments/jewellery you have, the weight of the pledged ornaments, and gold carat details. As soon as you enter these details, the calculator will give you the estimated loan amount eligibility based on the information you have entered. 

Compare Indian Bank Gold Loan to Other Lenders

Below is the comparison of Indian Bank gold loan with gold loan schemes of other lenders. You can check that you can get the lowest gold loan interest rate in which bank before applying for the loan.

BankRate of Interest (p.a.)Loan AmountProcessing FeeTenure
Indian Bank8.25% onwardsNo upper limit0.50%Up to 35 months
HDFC Bank7.60% - 16.81%Rs. 25,000 onwards (Rs. 10,000 onwards in rural markets)1%3 months - 2 years
SBI8%Rs. 20,000 - Rs. 50 LakhsNil till 31.01.2023Up to 3 years
Kotak Mahindra Bank8% - 17%Rs. 20,000 - Rs. 1.5 CroresUp to 2% + GSTUp to 4 years
Bank of Baroda9.20% - 9.30%Up to Rs. 25 LakhsApplicable charges +GST1 year - 3 years
ICICI Bank10% - 17.95%Rs. 50,000 - Rs. 1 Crore1%6 months - 1 year
Canara Bank13% onwardsRs. 5,000 - Rs. 35 Lakhs1% 6 months - 1 year
Axis Bank17% - 19%Rs. 25,001 - Rs. 25 LakhsUp to 0.50%6 months - 3 years

Fee & Charges of Indian Bank Gold Loan

The applicant has to bear the following charges for Indian Bank gold loan:

  • Processing fee: 0.50% on loan amount.
  • Rate of interest: 8.25% to 9.40% p.a., depending on the scheme type.
  • Appraiser fee: This fee is to be borne by the applicant as communicated by the lender during the time of loan application.

Process to Apply for Indian Bank Gold Loan

Follow the steps mentioned below to complete the online Indian Bank gold loan application process:

  • Visit the official website of the bank and open the Jewel Loan page. You can open the page directly by clicking on https://indianbank.in/departments/jewel-loan/#!
  • Click on the ‘Apply for loan’ link given at the bottom of the page.
  • Choose the ‘Submit request’ option.
  • Choose from the ‘Yes’ or ‘No’ options in the ‘whether you are an existing customer’ section.
  • Enter your saving bank account number if you are an existing customer of the bank.
  • If you are not an existing customer, enter your mobile number.
  • Click on the ‘Generate OTP’ button.
  • Enter the OTP received on your mobile number to complete the application.
  • The bank executives will get in touch with you soon.
  • In case of any difficulty in the online application process, you can contact at 1800 4250 0000 for online assistance.

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.

Indian Bank Gold Loan FAQs

What is the Indian Bank gold loan per gram rate today?

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Indian Bank's gold rate today is Rs. 2,900 to Rs. 3,450. Please note that the Indian Bank gold loan per gram rate may change when you apply for the loan. 

What is the gold loan interest rate in Indian Bank?

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Gold loan interest rate in Indian Bank starts from 8.25% per annum.

How do I repay my gold loan?

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You can repay your Indian Bank gold loan in any of the following two methods: 

  • Bullet Repayment: In this scheme, the entire loan amount is repayable at the end of tenure along with interest.
  • Monthly Repayment: Under this method, the loan is repayable in monthly instalments along with interest, also known as EMIs (Equated Monthly Instalments).

Can I pay gold loan interest online in Indian bank?

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Yes. To repay the Indian Bank Gold loan interest online, use the payment options available on the Indian bank's website or make your loan payments via net banking, debit card, or the i-mobile app.

What happens if the gold loan is not paid?

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The failure in repayment (usually 3 consecutive payments or more) will lead to the gold being auctioned off by the lending bank since the gold has been pledged as collateral against the loan. The gold will be sold off for recovery as it will become a non-performing asset.

Can we close the gold loan before maturity?

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Depending on the policy of the lending bank, you can prepay your gold loan as and when desired. Most lenders do not levy any prepayment penalty or a minimum lock-in period for prepayment. 

Is a bank account required for a gold loan?

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No, there is no need to submit any income proof, including bank account details. You can avail of a gold loan without any bank account. Most lenders provide a gold loan with minimum documents like identity and address proof.

Does a gold loan affect CIBIL?

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Yes, a gold loan affects your CIBIL. Therefore, it is advised to repay your gold loan in a timely manner.

What is the maximum tenure for a gold loan?

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In Indian Bank, the maximum tenure for a gold loan is up to 35 months.

Is PAN required for a gold loan?

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A PAN Card can be provided as an identity proof document. It is not a mandatory requirement.