Bank of India (BOI) Gold Loan Interest Rate 2025: Processing Fee, Documents Required, Eligibility, How to Apply

If you are in need of funds and you have gold ornaments lying idle, the Bank of India (BOI) offers an attractive option with its gold loan facility. BOI provides gold loans at competitive interest rates ranging from 8.35% to 9.05% p.a. with minimal processing fees and flexible repayment options.  

In this article, we will explore the Bank of India gold loan interest rate for 2025, eligibility criteria, documentation requirements, and the step-by-step process to apply.

Bank of India (BOI) Gold Loan Highlights

Below table provides the highlights of the Bank of India gold loan schemes:

Bank of India (BOI) Gold Loan Interest Rate 2025

When it comes to availing a gold loan, Bank of India's gold loan interest rate plays a crucial role in determining the overall cost of borrowing. In 2025, Bank of India will offer gold loans at an affordable interest rate starting from as low as 8.36% to 9.05% p.a. The interest rate may vary depending on factors such as – 

• Amount of loan
• Repayment tenure, and
• The purity of gold being pledged

The breakdown of the gold loan interest rate for different BOI schemes is provided below:

*Interest rates are subject to change depending on the RBLR and MCLR rates of the bank.

Bank of India Gold Loan Rate per Gram

Bank of India follows a per gram approach to determine the loan amount that can be provided against the pledged gold ornaments. The loan amount per gram may vary based on the prevailing gold prices and the loan-to-value (LTV) ratio set by the bank. Generally, BOI offers a maximum LTV ratio of up to 85% of the gold's value.

Bank of India Gold Loan Interest Rate for Farmers

The Bank of India provides gold loans for farmers or the agricultural sector at interest rates ranging from 8.60% to 9.00% p.a., depending on the various gold loan schemes of the bank.  

How to Apply for BOI Gold Loan?

Applying for a gold loan from the Bank of India is a straightforward process. You can visit the nearest BOI branch and follow the below steps:

Step 1: Fill out the gold loan application form provided by the bank.

Step 2: Submit the necessary documents.

Step 3: Get your gold ornaments weighed and valued by an appraiser appointed by the bank.

Step 4: The loan amount will be sanctioned based on the LTV ratio and the condition of the gold.

Step 5: Complete any additional formalities as instructed by the bank.

The sanctioned loan amount will be disbursed to your bank account or provided as a demand draft, as per your preference.

BOI Gold Loan Eligibility Criteria

BOI has set certain eligibility criteria for individuals to avail themselves of a gold loan. These criteria include age, citizenship, and ownership of gold jewellery.

To be eligible for a gold loan from Bank of India, you must meet the following criteria:

• Your age must be between 18 years.
• You should own gold ornaments that are eligible for pledging.
• You should have a source of regular income.

Documents Required for BOI Gold Loan

To apply for a gold loan from Bank of India, you need to provide the following documents:

• Proof of identity such as Aadhaar card, PAN card, or Voter ID.
• Address proof such as Aadhaar card, Passport, or Utility bills.
• Two passport-sized photographs.
• Details of land holding if the loan is being availed for agricultural purposes and the loan amount exceeds Rs. 2.50 lakhs. 

BOI Gold Loan Processing Fee

Bank of India charges a nominal processing fee for gold loan applications. This fee covers administrative costs and varies depending on the loan amount. The processing fee usually ranges from Rs. 125 and can go up to Rs. 1,500. However, the exact fee may vary depending on the loan amount and other factors.

BOI Gold Loan Appraiser Charges

BOI appoints an appraiser to evaluate the purity and value of the gold ornaments. The cost of the appraiser's services is borne by the borrower. Appraiser charges are applicable based on the loan amount and the gold's assessed value. However, the appraiser charges are minimal and reasonable.

BOI Gold Loan Maximum Limit

Bank of India sets a maximum limit on the loan amount that can be availed against the pledged gold. The maximum limit depends on various factors, such as the purity and weight of the gold, prevailing market conditions, and the borrower's repayment capacity. Currently, the Bank of India allows a maximum loan amount of Rs. 30 lakhs.

How to Calculate Gold Loan Interest in BOI?

BOI employs a simple interest calculation method for gold loans. Multiply the principal amount by the interest rate and loan tenure to calculate the total interest payable. 

To calculate the gold loan interest in Bank of India, use the following formula:

EMI Payable = [P x R x (1+R)^N] / [(1+R)^N-1],

where,

P = Principal amount

R = Interest rate 

N = Total number of monthly instalments

For example, if you borrow Rs. 5,00,000 at an interest rate of 9% per annum for a tenure of 24 months, the EMI payable will be Rs. 22,842.

BOI Gold Loan Interest Rate Calculator

You can use the our gold loan interest rate calculator online to determine the EMI payable based on the loan amount, interest rate, and tenure. To pay your gold loan interest online, log in to your BOI net banking account and follow the instructions provided.

How to Close Gold Loan in BOI?

To close a gold loan in BOI, you need to repay the principal loan amount, interest, and any applicable charges. Visit your nearest BOI branch and inform the loan officer of your intention to close the loan. They will guide you through the repayment process.

To close your gold loan in the Bank of India, follow these steps:

Step 1: Pay the outstanding loan amount along with any pending interest or charges.

Step 2: Collect the no-objection certificate (NOC) from the bank.

Step 3: Obtain the pledged gold ornaments by submitting the NOC to the bank.

Step 4: Ensure to receive all your documents back once the loan is closed.

Bank of India vs Other Banks' Gold Loan Interest Rates

BOI Gold Loan Customer Care/ Contact Number

For any queries or assistance regarding BOI gold loans, you can contact their customer care support. Give a missed call to the BOI gold loan contact number 8010968370 or send sms ‘GOLD’ to 7669021290 to resolve all your gold loan-related concerns.

Bank of India's gold loan offering provides a reliable and efficient way to convert your gold jewellery into instant funds. The competitive Bank of India gold loan interest rate, easy application process, and flexible repayment options make BOI a suitable choice for individuals seeking financial assistance. 

Other Banks Gold Loan Interest Rates:
1. ICICI Bank Gold Loan Interest Rate
2. HDFC Gold Loan Interest Rate 
3. Bank of Baroda (BOB) Gold Loan Interest Rate
4. Canara Bank Gold Loan Interest Rate
5. SBI Gold Loan Interest Rate
6. Axis Bank Gold Loan Interest Rate
7. Central Bank Gold Loan Interest Rate
8. PNB Gold Loan Interest Rate