Indian Overseas Bank (IOB) Gold Loan Interest Rate 2025: Processing Fee, Documents Required, Eligibility, How to Apply

Indian Overseas Bank gold loan interest rate starts from 7% per annum in 2025, depending on the borrower profile and scheme selected. IOB offers multiple gold loan options under agriculture, SME, women-specific, and general categories. The IOB gold loan interest rate is based on gold purity, loan amount, and subvention eligibility.

Indian Overseas Bank Gold Loan Highlights

Indian Overseas Bank (IOB) Gold Loan Interest Rate 2025

With Indian Overseas Bank (IOB), you can avail the most affordable rates of interest as per the gold loan scheme chosen. The Bank decides the final rate of interest. This, however, depends on the profile of the borrower and is mainly based on the value of gold. Banks can provide gold loans at low-interest rates because of security pledges in the form of gold ornaments. 

The rates are linked to IOB’s MCLR (Marginal Cost of Funds-based Lending Rate) or RLLR (Repo Linked Lending Rate). As of 2025, the IOB gold loan interest rate starts from 8.25% per annum for general jewel loans (RLLR – 0.50%), while specific schemes like KCC agricultural jewel loans may offer 7% interest with subvention benefits. 

The gold loan interest rate of Indian Overseas Bank is provided below:

Indian Overseas Bank Gold Loan Per Gram 

The gold loan per gram that you can avail of depends directly on the purity of your gold and the current rate of purity of gold prevailing in the market. The gold rate keeps on fluctuating in the market daily. For this, the gold loan per gram in the Indian Overseas Market also keeps on changing every day. Depending on the purity and market price of gold loans in Indian Overseas Bank, you can avail a loan at Rs. 3,800 to Rs. 4,350 per gram of gold. 

Indian Overseas Bank Agriculture Gold Loan Interest Rate

Agricultural gold loan is provided to farmers to meet their production needs in the short term with a repayment tenure of 36 months yearly or half-yearly. The rate of interest that the Indian Overseas Bank charges to the farmers for agricultural gold loans is 8.85% i.e., RLLR + 0.50%. 

IOB Gold Loan Processing Fee

The processing fee is the fee that banks charge for processing your loan. For Indian Overseas Bank, a gold loan is 1% of the outstanding amount of the loan, i.e., Rs. 1,000, whichever will be more, is charged as the processing fee. 

IOB Gold Loan Maximum Limit

The maximum limit for Indian Overseas Bank (IOB) gold loan per borrower is Rs. 25 lakhs. 

IOB Gold Loan Eligibility Criteria

The eligibility criteria for a gold loan vary from one bank to another. With Indian Overseas Bank, meeting the following eligibility criteria will help you get easy approval of your loan:

• Individuals must be willing to create an account with the bank. This applies to both new as well as existing customer.
• Individuals owning jewellery/coins/ornaments.
• Banks grant gold loans against any jewellery or gold ornaments along with minted pure gold coins sold by banks. However, the coin's total weight should not be more than 50 grams per customer.
• Individual gold loan owners must be aged 18 years and above.

How to Apply for an IOB Gold Loan?

When you decide to get a gold loan at the Indian Overseas Bank, you will get to know about the various gold schemes that you can opt for as per your feasibility. At Indian Overseas Bank, you can apply for a gold loan either online or offline at your convenience.

Here is a detailed overview of opting for gold loan through both offline and online mode:

Offline Mode

Through offline mode, you need to visit the nearest Indian Overseas Bank branch. When visiting the branch, you must submit all your necessary documents and gold. You will come to know all gold schemes in detail from the representative and accordingly opt for the ideal one. 

Once you choose the right scheme, fill out the application form. After this, the lender will measure the overall value of your gold and accordingly will sanction your loan amount. 

Online Mode

This is an alternative to visiting the branch. With online mode, you need to visit the official website of the Indian Overseas Bank. Go to the ‘Jewel Loans’ section. Fill out the application form from the website with all the necessary details, including your mobile number, name, and email ID. Upon successful submission of the application form, the representatives will contact you. 

Documents Required for IOB Gold Loan

Other than gold ornaments, you need to provide a set of documents for completing the application process. You cannot proceed with a loan application without all the necessary documents. Following is the set of documents that are mandatory to be submitted to the lender:

• Proof of signature.
• Address Proof – Aadhaar card, Voter’s ID card, ration card, telephone or electricity bill.
• ID Proof - Valid driving license, PAN card, passport or Aadhaar card.
• Recent passport-size photographs.
• PAN card or Form 60.

How to Calculate Gold Loan Interest in IOB?

To calculate gold loan interest at Indian Overseas Bank, you can use a gold loan interest rate calculator and learn about how interest rate changes the total outstanding amount. With the help of a gold loan calculator, you can get an idea of what amount you have to pay in return to settle your loan.

Gold loan calculators are free to use and provide a better insight into your loan offers through an amortisation schedule. Through this schedule, you can get a detailed idea of the interest rates to be paid throughout the tenure. 

Here is a detailed process on how to use a gold loan calculator:

• Visit the gold loan calculator at the Indian Overseas Bank website.
• Enter all detailed information in the calculator including the loan amount, weight of gold jewellery and the repayment tenure.
• Obtain the rate of interest to be paid along with other loan details immediately.

How to Pay Gold Loan Interest in IOB Online?

To pay the gold loan interest in Indian Overseas Bank online, you can choose to repay the gold loan amount on Paytm by choosing your preferred payment options. Otherwise, you can also choose to pay your gold loan interest online through net banking. 

How to Close a Gold Loan in IOB?

If you wish to close the gold loan with Indian Overseas Bank, you can do so by following the below-mentioned steps:

Step 1: Visit your nearest Indian Overseas Bank branch and submit all the necessary documents.

Step 2: Write a letter to the bank requesting to close your gold loan account at Indian Overseas Bank.

Step 3: Pay the required gold loan account closure charges as per the Indian Overseas Bank.

Indian Overseas Bank vs Other Banks' Gold Loan Interest Rates

IOB Gold Loan Contact Number

If you face any issues with your chosen gold loan scheme, you can reach out for assistance and clearance by calling 9878981144. There are several gold deals available across all Indian Overseas bank branches across the globe. You can opt for the perfect deal to meet your needs. 

Indian Overseas Bank is recognised as a well-known gold loan provider that offers services catering to the needs of customers. It also holds a record of disbursing the entire loan amount within less than one hour. 

Moreover, your pledged gold ornaments are kept safely in your bank locker, and the borrower need not worry regarding its safety. Additionally, there are no associated fees and hidden costs on Indian Overseas Bank Gold Loan. 

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

IOB Bank Related Articles:
1. Indian Overseas Bank Personal Loan Interest Rate 2025
2. Indian Overseas Bank Fixed Deposit (FD) Interest Rates 2025