Union Bank Gold Loan Interest Rate 2024: Processing Fee, Documents Required, Eligibility, How to Apply
Union Bank of India, a major gold loan provider, prioritises understanding and meeting customer needs. Loan amounts are disbursed swiftly, often within an hour, and pledged gold is securely stored in bank lockers. Transparency is ensured by providing upfront information on Union Bank Gold Loan interest rates and charges. Union Bank of India's gold loans offer a simple and secure way to access funds, with attractive interest rates and minimal documentation.
Keep reading to know everything about the interest rates and charges on gold loans.
Union Bank Gold Loan Interest Rate 2024
Following are the gold loan interest rates charged by Union Bank for various gold loan schemes:
| Loan Scheme | Less than Rs. 5 lakh (in %) | More than Rs. 5 lakh and less than Rs. 25 lakh (in %) | More than Rs. 25 lakh (in %) | |||
| Union Krishi Kamdhenu Gold Loan Scheme | MCLR for 1 Year | 8.70 | MCLR for 1 Year | 8.70 | NA | |
| Union Gold Loan-MSME | EBLR | 9.30 | EBLR | 9.30 | EBLR + 0.10% | 9.40 |
| Union Gold Loan-Retail | EBLR | 9.30 | EBLR + 0.45 | 9.75 | EBLR + 0.60% | 9.90 |
| Union Gold Loan-Agriculture | MCLR for 1 Year | 8.70 | MCLR for 1 Year | 8.70 | 1 year MCLR + 0.10% | 8.80 |
| Union MSME Gold Loan Plus | EBLR | 9.30 | EBLR | 9.30 | EBLR + 0.10% | 9.40 |
| Union Swarna Shakti Loan Scheme-Retail | EBLR | 9.30 | EBLR | 9.30 | NA | |
| Union Secured Overdraft Gold Loan | ||||||
| Agriculture | NA | MCLR for 1 Year + 0.25% | 8.95 | MCLR for 1 Year + 0.25% | 8.95 | |
| Retail | EBLR + 0.95% | 10.25 | EBLR + 1.10% | 10.40 | ||
| MSME | EBLR + 0.50% | 9.80 | EBLR + 0.60% | 9.90 | ||
Union Bank Gold Loan per Gram
Following is a list of the Union Bank Gold Loan interest rate per gram:
| Weight of the Gold | Purity of Gold | |||
| 24 Carat (in Rs.) | 22 Carat (in Rs.) | 20 Carat (in Rs.) | 18 Carat (in Rs.) | |
| 500 gram | 23,40,000 | 21,45,000 | 19,50,000 | 17,55,000 |
| 400 gram | 18,72,000 | 17,16,000 | 15,60,000 | 14,04,000 |
| 300 gram | 14,04,000 | 12,87,000 | 11,70,000 | 10,53,000 |
| 200 gram | 9,36,000 | 8,58,000 | 7,80,000 | 7,02,000 |
| 100 gram | 4,68,000 | 4,29,000 | 3,90,000 | 3,51,000 |
| 50 gram | 2,34,000 | 2,14,500 | 1,95,000 | 1,75,500 |
| 40 gram | 1,87,200 | 1,71,600 | 1,56,000 | 1,40,400 |
| 30 gram | 1,40,400 | 1,28,700 | 1,17,000 | 1,05,300 |
| 20 gram | 93,600 | 85,800 | 78,000 | 70,200 |
| 10 gram | 46,800 | 42,900 | 39,000 | 35,100 |
| 1 gram | 4,680 | 4,290 | 3,900 | 3,510 |
Union Bank Agriculture Gold Loan Interest Rate
Under the Union Bank Agriculture gold loan scheme, you can obtain financing for agricultural expenses related to crop production or allied agricultural activities. The loan amount can be up to Rs. 1 crore. 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.
- Existing as well as new customers are eligible, provided they are willing to open an account with us.
Union Bank gold loan interest rates 2024 for agriculture purposes range between 8.70% and 8.80%. The total tenure for this loan should not exceed 3 years, coinciding with the harvesting and marketing season or the generation of income from the activity.
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 Rs. 50 lakhs, depending on the chosen scheme.
- Hallmark 18 or 20 Karat Gold: For slightly lower karat ratings, the maximum loan amount is Rs. 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: Equivalent to 0.50% of the loan amount or a maximum of Rs. 1000.
- Appraisal Charges: Amount to 0.40% of the loan amount, capped at Rs. 500, with a minimum charge of Rs. 100.
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:
- 12-month Loan: 0.40% of the loan amount, capped at Rs. 500 and a minimum of Rs. 100, if closed within 11 months.
- 6-month Loan: 0.40% of the loan amount if closed within 5 months.
Union Bank Gold Loan Interest Rate Calculator
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 Gold Loan Customer Care
For instant assistance and approval for your Union Bank of India Gold Loan, call 9878981144. 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.
After reading this detailed blog, you should now have a clear understanding of the Union Bank Gold Loan interest rate. 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
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