Union Bank of India offers gold loans as a secured financial product for individuals seeking quick financing by pledging their gold ornaments. This loan is popular for its low interest rates, easy accessibility, and minimal documentation, making it suitable for personal, agricultural, and business-related financial needs. Union Bank provides various types of gold loans catering to different customer segments, including farmers, MSMEs, and individuals, to meet various financial requirements.
The Union Bank Gold Loan offers quick financing against pledged gold with loan amounts up to ₹50 lakh, competitive interest rates starting from MCLR + 1.00%, and flexible repayment options, making it ideal for personal, agricultural, or business needs.
Highlights of Union Bank Gold Loan
Union Bank Gold Loans come with flexible loan amounts, different tenure options, and competitive interest rates. Here is a summary:
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹50 lakh |
| Repayment Period | Maximum of 12 months |
| Gold Loan Interest Rate | Varies based on loan type and gold purity |
| Processing Charges | Starting from 0.50% with applicable GST |
| Security | Pledge of gold ornaments/jewelry |
Are you looking for a personal loan?
Get Personal Loan Online Up to ₹15 Lakhs By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Union Bank Gold Loan Interest Rates & Charges
Union Bank offers various gold loan products at low interest rates linked to MCLR or EBLR, depending on the loan type and amount. Below is a detailed table showcasing the applicable Union Bank gold loan interest rates across different loan categories and borrowing limits.
| Product | Up to Rs.5 Lakhs | >5 Lakhs & Up to Rs.25 Lakhs | Above Rs.25 Lakhs |
|---|---|---|---|
| Union Krishi Kamdhenu Gold Loan Scheme | 1 Year MCLR(7.90%) | NA | NA |
| Union Gold Loan – Agriculture | 1 Year MCLR (7.90%) | 1 Year MCLR (7.90%) | 1 Year MCLR + 0.10% (8.00%) |
| Union Gold Loan – MSME | EBLR – 0.80% (7.90%) | EBLR(8.70%) | EBLR + 0.10% (8.80%) |
| Union Gold Loan – Retail | EBLR – 0.80% (7.90%) | EBLR + 0.45 (9.15%) | EBLR + 0.60%(9.30%) |
| Union Swarna Shakti Loan Scheme – Retail | EBLR – 0.80% (7.90%) | EBLR (8.70%) | NA |
| Union MSME Gold Loan Plus | EBLR – 0.80% (7.90%) | EBLR (8.70%) | EBLR + 0.10% (8.80%) |
Union Secured Overdraft Gold Loan
| Agriculture | 1 Year MCLR + 0.25% (8.15%) | 1 Year MCLR + 0.25% (8.15%) | |
| MSME | NA | EBLR + 0.50% (9.20%) | |
| Retail | EBLR + 0.95% (9.65%) | EBLR + 0.95% (9.65%) | EBLR + 1.10% (9.80%) |
The rate of Interest for below 22 Karat & up to 18 Karat would be 0.25% higher and is subject to change.
Not sure of your credit score? Check it out for free now!
Types of Union Bank Gold Loan
Union Bank of India provides multiple gold loan options tailored to meet the specific needs of diverse customer segments, including farmers, MSMEs, and individuals. Here’s a detailed look at the various Union Bank Gold Loan products:
Union Krishi Kamdhenu Gold Loan Scheme
The Union Krishi Kamdhenu Gold Loan Scheme is designed for individuals, specifically farmers, engaged in agriculture and allied activities. This loan offers financial support by pledging gold ornaments, jewelry, or coins. The scheme is suitable for owners, entrepreneurs, tenant farmers, and sharecroppers in rural, semi-urban, and select urban branches.
Key Features of Union Krishi Kamdhenu Gold Loan Scheme:
| Criteria | Details |
|---|---|
| Eligibility | Individuals in agriculture and allied sectors (excluding manufacturers/exporters) |
| Purpose | Expenses for crop cultivation, dairy, poultry, fisheries, etc. |
| Assessment of Loan Amount | Based on 22 Karat appraised gold value or advance rate per gram, whichever is lower |
| Loan Quantum | Up to ₹25 lakh, with a cap of ₹5 lakh for coins |
| Margin | 30% for 22-karat gold |
| Security | Pledge of gold ornaments, jewelry, or coins |
| Rate of Interest | 1 Year MCLR + 1.00% for 22 Karat; additional 0.25% for lower purities |
| Repayment | Up to 12 months, with bullet or part payment options |
| Processing Charges | From NIL for loans up to ₹0.25 lakh to ₹400 + GST for loans up to ₹10 lakh |
| Appraisal Charges | 0.40% of the loan amount (capped at ₹500) for small loans, with higher charges for larger loans |
Looking for a loan?
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Union Gold Loan – Retail
The Union Gold Loan – Retail is a non-priority sector gold loan aimed at individuals needing funds for personal expenses, investments, or to meet unforeseen liabilities. It is accessible to both new and existing customers who can pledge their gold ornaments, jewelry, or coins.
Key Features of Union Gold Loan – Retail:
| Criteria | Details |
|---|---|
| Purpose | Covers personal financial needs, including medical expenses, investments, and unexpected costs |
| Eligibility | Available to any individual with gold jewelry or coins, singly or jointly |
| Assessment of Loan Amount | Based on the applicant’s declaration or 70% of the appraised 22 Karat value, or per gram bank rate |
| Loan Quantum | Up to ₹50 lakh, with a ₹5 lakh cap for hallmarked gold |
| Margin | 30% for 22-karat gold, 35% for hallmarked gold |
| Repayment | Up to 12 months, with monthly interest; LTV maintained at 75% |
| Processing Charges | 0.5% of the loan amount, capped at ₹1,000, subject to revision |
Union Gold Loan – Agriculture
The Union Gold Loan – Agriculture is a loan product designed specifically for farmers and individuals engaged in agricultural activities. It allows them to pledge gold ornaments to secure funding for various farming-related needs. This product is suitable for cultivators, agricultural entrepreneurs, and farmers in allied fields such as dairy, poultry, and fishery.
Key Features of Union Gold Loan – Agriculture:
| Criteria | Details |
|---|---|
| Purpose | Covers expenses in agriculture, livestock, dairy, fisheries, irrigation, horticulture, etc. |
| Eligibility | Farmers, cultivators, tenant farmers, and sharecroppers involved in agriculture or allied activities |
| Assessment of Loan Amount | Based on the applicant’s declaration or 70% of appraised gold value, per gram bank rate or credit requirements |
| Quantum of Loan | Minimum above ₹25 lakh; maximum up to ₹50 lakh |
| Margin | 30% for gold collateral |
| Repayment | Up to 12 months, with bullet or part payment options |
| Proof of Activity | Required land records, permissions, or bills as evidence of agricultural activity |
Union MSME Gold Loan Plus
The Union MSME Gold Loan Plus is a gold-backed loan specifically designed to support MSME (Micro, Small, and Medium Enterprises) in trading, services, and manufacturing sectors. This loan helps meet business requirements such as working capital, petty trade, and operational expenses.
Key Features of Union MSME Gold Loan Plus:
| Criteria | Details |
|---|---|
| Eligibility | MSMEs including proprietors, business owners, women entrepreneurs, self-employed professionals, retail/wholesale traders |
| Purpose | Covers business expenses, working capital, and expansion needs |
| Loan Quantum | Up to ₹50 lakh |
| Assessment | Based on the applicant’s declared amount or 75% of the appraised 22 Karat value (or 65% for lower-fineness hallmarked gold), or per gram rate |
| Margin | 25% for 22 Karat gold, 35% for hallmarked gold |
| Security | Pledge of gold ornaments, jewelry, or coins |
| Repayment | Up to 12 months, with bullet repayment or lump sum options |
Not sure of your credit score? Check it out for free now!
Features & Benefits of Union Bank Gold Loan
Union Bank Gold Loans offer a reliable and flexible financing option, allowing individuals, farmers, and businesses to leverage their gold assets to meet various financial needs.Here are the key features and benefits of Union Bank Gold Loans:
- Quick Processing and Approval: Union Bank Gold Loans are processed quickly with minimal documentation, making them ideal for urgent financial needs.
- Flexible Loan Amount: Borrowers can avail of loan amounts up to ₹50 lakh, depending on the type of loan and the value of the gold pledged.
- Competitive Interest Rates: Interest rates are linked to MCLR or EBLR, ensuring borrowers get competitive rates that vary with loan type and amount.
- Wide Range of Loan Products: Union Bank offers specialized gold loan products tailored for personal needs, agriculture, MSME business needs, and more, making it suitable for a variety of customers.
- High Loan-to-Value Ratio (LTV): With LTV ratios up to 75%, borrowers can secure a significant loan amount relative to the gold’s value.
- Gold Security: The pledged gold is securely held by the bank, ensuring safety for the borrower’s assets throughout the loan tenure.
Union Bank Gold Loan Interest Rates Vs Other Banks
The table below shows the gold loan interest rates of Union Bank Gold Loan in comparison to other banks & NBFCs.
| Bank/NBFC | Gold Loan Interest Rate % p.a. |
|---|---|
| Union Bank Gold Loan | 7.90% to 9.80% |
| SBI Gold Loan | 9.05% |
| IIFL Finance Gold Loan | 11.88% – 27% p.a |
| Bajaj Finserv Gold Loan | 9.50% – 28% p.a. |
| Kotak Mahindra Bank Gold Loan | 8.00% to 24.00% |
| HDFC Bank Gold Loan | 8.30% to 16.55% |
| Central Bank of India Gold Loan | 8.45% to 8.55% |
| UCO Bank Gold Loan | 8.50% |
| Indian Bank Gold Loan | 8.65% to 9.00% |
| IndusInd Bank Gold Loan | 8.75% to 16.00% |
| Bandhan Bank Gold Loan | 8.75% to 19.25% |
| Punjab & Sind Bank Gold Loan | 8.85% |
| Bank of Baroda Gold Loan | 9.15% |
| Punjab National Bank Gold Loan | 9.25% |
| Bank of Maharashtra Gold Loan | 9.30% |
| Federal Bank Gold Loan | 9.49% |
| City Union Bank Gold Loan | 9.50% |
| Canara Bank Gold Loan | 9.60% |
| J & K Bank Gold Loan | 10.00% |
| ICICI Bank Gold Loan | 10.00% |
| Karur Vysya Bank Gold Loan | 10.25% |
| South Indian Bank Gold Loan | 10.01% |
| Karnataka Bank Gold Loan | 11.21% |
| Axis Bank Gold Loan | 17.00% |
| Muthoot Finance Gold Loan | 22% p.a. with a 2% rebate if 100% interest is paid monthly |
| AU Small Finance Bank Gold Loan | Up to 24.00% |
Note: The interest rates mentioned above are subject to change at the lender’s discretion.
Union Bank Gold Loan Eligibility
To be eligible for a Union Bank Gold Loan, applicants must meet the following criteria:
- Must be 18 years or older.
- Individuals, joint account holders, MSMEs, and farmers depending on the loan type.
- Must own gold ornaments, coins, or jewelry of 22-karat purity (specific policies for specially minted coins and hallmarked gold).
- Proper identification and address verification through Aadhaar, PAN, etc.
Documents Required for Union Bank Gold Loan
Applying for a Union Bank Gold Loan requires these essential documents:
- Identity Proof: Aadhaar Card, PAN Card, Passport, or Voter ID.
- Address Proof: Utility bill, ration card, or similar.
- Agriculture Proof: For agricultural loans, land records, or permissions as evidence of agricultural activity.
- Business Proof: For MSME loans, registration documents, or declarations for business usage.
Steps to Apply for Union Bank Gold Loan
Applying for a Union Bank Gold Loan is easy and convenient, with both online and offline options available. Here’s a step-by-step guide for each method:
Steps to Apply for a Union Bank Gold Loan Online
- Go to the Union Bank of India’s official website and navigate to the loan application section.
- Choose the “Gold Loan” option from the ‘Select Product’ drop-down menu.
- Fill in the required details accurately. Once submitted, a bank representative will arrange a visit to your home to evaluate the purity and weight of your gold.
- After the gold evaluation, the bank will process your loan and disburse the approved amount directly to your bank account.
Steps to Apply for a Union Bank Gold Loan Offline
- Locate and visit your nearest Union Bank branch, bringing your gold ornaments and necessary documents.
- Complete the form provided at the branch, or download it in advance from the Union Bank website.
- Submit the filled application form along with all required identification and verification documents.
- The bank representative will assess the value of your gold to determine the eligible loan amount.
- After verification, the loan amount will be credited to your bank account.
Do you need an emergency loan?
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Union Bank Gold Loan Interest Repayment
Union Bank of India provides multiple convenient options for repaying the interest on your Gold Loan, allowing you to choose the method that best suits your banking preferences. Here are the repayment options available:
- Standing Instruction (SI): For Union Bank of India account holders, this is the easiest option. You can set up a Standing Instruction to automatically debit the EMI amount from your Union Bank account at the end of each month.
- Electronic Clearing Service (ECS): This option is available for borrowers who hold accounts with other banks. With ECS, your EMI amount will be automatically debited from your non-Union Bank account at the end of each monthly cycle.
- Post-Dated Checks (PDC): You can submit post-dated EMI checks from a non-Union Bank account at your nearest Union Bank branch. This option is available for non-ECS states only, and you must ensure that updated PDCs are submitted promptly to avoid any issues.
Union Bank Customer Care Numbers
Union Bank of India customer care offers a comprehensive 24/7 service to assist customers with their banking needs, fraud reports, premium accounts, and NRI inquiries.
Here are the key contact numbers:
- All-India Toll-Free Numbers: 1800 208 2244 / 1800 425 1515 / 1800 425 3555
- Fraud/Disputed Transactions Helpline: 1800 2222 43
- Premium Account Helpline: 1800 425 2407
- NRI Customer Call Back Facility: +918484848458
- Charged Customer Care Number: 080-61817110
- Dedicated NRI Customer Number: +918061817110
Ready to take the next step?
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.