Union Bank Gold Loan Interest Rate 2025: Processing Fee, Documents Required, Eligibility, How to Apply

Union Bank of India, a major gold loan provider, prioritises understanding and meeting customer needs. Union Bank of India gold loans offer a simple and secure way to access funds, with attractive interest rates and minimal documentation. 

Keep reading to know everything about Union Bank of India gold loan interest rates 2025, fees, eligibility, documents, and application process.

Union Bank Gold Loan Highlights

Union Bank Gold Loan Types and Interest Rate 2025

Following are the types of gold loans and their interest rates charged by Union Bank for various gold loan schemes:

Interest rates of gold loan for 22 Karat gold:

Union Bank Gold Loan per Gram

The Union Bank gold loan per gram varies based on the purity of gold and market value. It is usually up to 75% of the total value of 22 Karat gold. It varies from ₹4,680 per gram to ₹3,510 per gram for 24 Karat to 18 Karat gold.

Union Bank Agriculture Gold Loan Interest Rate

The Union Bank Agriculture gold loan scheme is the Union Krishi Kamdhenu gold loan scheme. Union Bank gold loan interest rates 2025 for agriculture purposes is 9.10% for male borrowers and 9.00% for female borrowers for 22 Karat gold. The interest rate is 9.35% for male borrowers and 9.25% for female borrowers for below 22 Karat but up to 20 Karat gold.

Under the Union Krishi Kamdhenu Gold loan scheme you can obtain financing for agricultural expenses or allied agricultural activities. The loan amount can be from ₹2 lakh to ₹25 lakh. To be eligible for the Union Bank gold agriculture Loan, you must meet the following criteria:

• Be an individual owning gold ornaments, jewellery, or coins, either singly or jointly.
• Loans can be granted against gold jewellery, ornaments, and specially minted pure gold coins sold by the bank or other banks. The total weight of the coins should not exceed 50 grams per customer.
• All farmers who are owner cultivators, tenant farmers, Agri entrepreneurs, sharecroppers and oral lessees can apply.

Union Bank Gold Loan Maximum Limit

The maximum amount you can borrow through a Union Bank of India gold loan depends on the karat rating of your gold and the specific scheme you choose. Here is a breakdown:

• 22 Karat Gold: For higher-purity gold, you can get loans up to ₹50 lakhs, depending on the chosen scheme. 
• Hallmark 18 or 20 Karat Gold: For slightly lower karat ratings, the maximum loan amount is ₹5 lakh. Remember, hallmarked gold assures purity and enhances value.

Union Bank Gold Loan Charges

When obtaining a gold loan, various fees are associated with it, which usually vary based on the loan amount and the lender's regulations. Below are the fees incurred when availing a gold loan from Union Bank of India

Processing Charges:

Appraisal Charges:

Union Bank Gold Loan Procedure

The following steps are involved in the gold loan process:

Step 1: Evaluation of gold purity helps in determining the loan amount.

Step 2: The current market rate of gold per gram is considered, often based on the previous day's rate.

Step 3: Loan to Value (LTV) ratio is determined, with the maximum LTV set by the RBI at 75%.

Step 4: Upon acceptance of the loan amount and terms, the lender processes the application, deducting processing fees and other charges from the loan amount.

Step 5: After the final agreement signing, the gold loan amount is disbursed to your account.

Union Bank Gold Loan Eligibility Criteria

The eligibility criteria for obtaining a Union Bank of India gold loan include:

• Ownership of gold jewellery and ornaments, either individually or jointly. Gold coins are also accepted, with the condition that the total weight of coins does not exceed 50 grams per customer.
• Verification of identity using government-issued documents such as ration cards, identity cards, passports, Aadhaar cards, PAN cards, and other similar documents.
• Compliance with KYC/AML regulations.

Documents Required for Union Bank Gold Loan

To secure a gold loan from the Union Bank of India, you will need to gather some key documents. They are as follows:

• Government-issued photo ID - Choose one from your ration card, identity card, passport, Aadhaar Card, or PAN card.
• Similar to your ID, select one from your ration card, identity card, passport, Aadhaar Card, or PAN card for address verification.
• Submit a few clear photographs of yourself.

How to Apply for a Union Bank Gold Loan Online?

Following are the steps for applying for a Union Bank Gold Loan Online:

Step 1: Visit the loan application page of Union Bank.

Step 2: Select the Gold Loan option from the ‘Select Product’ drop-down. 

Step 3: After filling up the application form correctly, bank executives will come to your house and evaluate the gold’s purity and weight. 

Step 4: Once these steps are completed, the bank will process your loan and disburse the amount to your account.

How to Apply for a Union Bank Gold Loan Offline?

Union Bank of India also offers a straightforward offline application process for its gold loans. Follow these simple steps to get started:

Step 1: Locate the nearest Union Bank of India branch and visit it with your gold ornaments and documents.

Step 2: Fill out the application form provided by the representatives at the branch. You can also download the form from the official Union Bank of India website.

Step 3: Submit the completed application form along with the required documents.

Step 4: The lender will assess the value of your gold, which will determine your loan amount.

Step 5: Once the authentication process is complete, the loan amount will be credited to your bank account.

How to Close Gold Loan in Union Bank?

Repaying your gold loan ensures timely closure and avoids unnecessary charges. There are two types of repayment options:

• Equated Monthly Instalments (EMIs): The bank calculates your EMIs based on the loan amount and chosen tenure. Paying EMIs regularly on time helps you repay within the stipulated time frame.
• Foreclosure: You can prepay your loan before the due date. However, Union Bank of India charges a foreclosure fee.

Union Bank Gold Loan Interest Rate Calculator

The Union Bank Gold Loan Interest Rate Calculator can help you determine the total amount of interest payable along with the net repayment amount. Here, you will simply have to enter the amount of the loan, loan tenure, and applicable interest rate. The online calculator will automatically show the interest component and the net amount payable.

How to Pay Gold Loan Interest in Union Bank Online?

Union Bank of India offers multiple convenient methods for paying Gold Loan interest:

• Standing Instruction (SI): If you have a Union Bank of India account, you can set up Standing Instructions. At the end of each month, the EMI amount will be automatically debited from your Union Bank of India account.
• Electronic Clearing Service (ECS): This option is for applicants who have a non-Union Bank of India account. EMIs will be debited automatically from this account at the end of each month cycle.
• Post-Dated Checks (PDC): You can submit post-dated EMI checks from a non-Union Bank of India account at your nearest Union Bank of India branch. Ensure that new versions of PDCs are submitted promptly. Note that Post-Dated Checks are collected in non-ECS states only.

Union Bank vs Other Banks' Gold Loan Interest Rates

Union Bank Gold Loan Customer Care

For instant assistance and approval for your Union Bank of India Gold Loan, call 18002333. Discover the best offers on Gold Loans available at all Union Bank of India branches nationwide, ensuring you get the best deal tailored to your needs.

As a leading financial institution in India, Union Bank offers competitive Gold loan interest rates that cater to the needs of each customer. In addition to the attractive interest rates, the bank's seamless application process and flexible repayment schedule make it an ideal option 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