If you are in urgent need of funds but prefer not to sell your gold jewellery, a gold loan can provide immediate liquidity while allowing you to retain ownership of your ornaments. In 2026, gold loans continue to be one of the most preferred borrowing options because they offer lower interest rates compared to unsecured loans, faster approval, and flexible repayment structures. Borrowers use gold loans for medical emergencies, business expansion, education fees, agricultural needs, or temporary cash-flow management.

• Also Read: Live Gold Price Today

The Bank of India Gold loan interest rate remains competitive in 2026, making BOI a strong choice for individuals seeking secured funding. Bank of India offers gold loans at interest rates ranging between 8.35% and 9.05% per annum, along with minimal processing fees and flexible repayment options. Since the loan is secured against pledged gold ornaments or coins, approval is generally faster and less documentation-heavy than personal loans.

In this detailed guide, we will explore everything related to the Bank of India Gold loan interest rate 2026, including loan highlights, scheme-wise interest rate structure, per gram valuation, agriculture loan options, eligibility requirements, and step-by-step application procedure. Understanding these details helps borrowers estimate their costs correctly and avoid confusion during appraisal and sanction.

• Also Read: Lowest Gold Loan Interest Rate in India

Bank of India (BOI) Gold Loan Highlights

The following table summarizes the major features of Bank of India gold loan schemes, giving borrowers a quick understanding before applying.

Feature	Details
Gold Loan	Bank of India Gold Loan
Interest rate	8.35% to 9.05% p.a.
Loan amount	₹20,000 to ₹30 lakh
Tenure	Up to 20 years (scheme dependent)
Processing fee	₹250 to ₹1,500
Collateral	Pledge of gold jewellery or coins

• Competitive interest rates reduce borrowing cost significantly: Bank of India gold loan interest rate starts from 8.35% per annum, making it affordable compared to many unsecured loans.
• Loan amounts suit both small and large borrowers: Borrowers can avail funding starting from ₹20,000 up to ₹30 lakh depending on gold purity and net eligible weight.
• Long tenure options improve repayment flexibility: Depending on scheme type, longer tenure availability helps borrowers plan repayment according to their financial capacity and cash flow.
• Low processing fee keeps initial cost manageable: Processing charges range between ₹250 and ₹1,500, helping borrowers avoid heavy upfront expenses during loan sanction.
• Gold ornaments or coins act as secured collateral: Borrowers pledge gold jewellery or coins, and ownership remains intact until the loan is fully repaid and ornaments are released.

Understanding highlights helps borrowers compare lenders and choose BOI if the terms match their funding requirements.

Bank of India Gold Loan Interest Rate 2026

The Bank of India Gold loan interest rate plays a crucial role in determining the total repayment burden for borrowers. In 2026, BOI offers gold loans at affordable interest rates ranging from 8.36% to 9.05% per annum, depending on scheme type and borrower profile. The interest rate may vary based on loan amount, tenure selected, and the purity of gold pledged as collateral.

The breakdown of Bank of India gold loan interest rates across schemes is provided below:

Products	Rate of Interest
Gold Loan & Overdraft for Agriculture	9.00% p.a.
Gold Loan & Overdraft for Food & Agro	8.60% p.a.
Gold Loan & Overdraft for MSME	8.75% p.a.
Gold Loan for Retail Customers	8.60% p.a.

Interest rates are subject to change depending on the bank’s RBLR and MCLR updates.

• Agriculture gold loans support farming sector funding: Loans offered at around 9.00% help farmers manage crop cycle expenses and seasonal funding needs efficiently.
• Food and agro sector loans carry competitive pricing: Gold loans for food processing and agro-related activities are generally available at around 8.60% interest rate.
• MSME gold loan supports small business funding needs: MSME borrowers can pledge gold to secure loans at around 8.75%, helping manage working capital requirements.
• Retail gold loan suits personal funding requirements: Individual borrowers can avail gold loans at around 8.60%, ideal for personal expenses and emergencies.
• Final interest rate depends on bank benchmark revisions: Since rates are linked to internal benchmarks, borrowers should confirm final applicable interest rate at sanction.

Choosing the correct scheme helps borrowers reduce interest cost while matching repayment flexibility.

• Must Know: Gold Rate Prediction for the Next 5 Years in India

Bank of India Gold Loan Rate per Gram

Bank of India determines gold loan eligibility using a per gram valuation system. The loan amount you receive depends on prevailing gold prices, purity level, and loan-to-value ratio applied by the bank. Generally, BOI provides loan amounts up to 85% of the gold’s assessed value, subject to regulatory and internal policy limits.

• Per gram valuation changes with daily gold price movement: Since market gold prices fluctuate daily, the eligible loan amount per gram also changes accordingly.
• Higher purity gold increases loan eligibility value: Jewellery with higher karat purity receives better valuation, helping borrowers qualify for higher sanctioned amounts.
• Loan-to-value ratio controls maximum sanction amount: Even though gold may have higher market value, borrowers receive only up to permissible LTV percentage set by bank rules.
• Net gold weight matters more than gross jewellery weight: Stones, enamel, or attachments reduce net gold weight, which lowers final eligible loan calculation.
• Per gram estimate helps borrowers plan loan expectations: Knowing approximate per gram eligibility allows borrowers to roughly estimate sanction amount before visiting the branch.

Borrowers should treat per gram valuation as an estimate because final eligibility depends on appraisal results.

• Must Know: Best Day to Buy Gold Jewellery in India

Bank of India Gold Loan Interest Rate for Farmers

Bank of India offers specialized gold loan schemes for farmers and agricultural borrowers, allowing them to pledge gold ornaments to secure funding for crop cycles and related activities. Since agriculture income is seasonal, gold loans help farmers obtain quick funds without heavy paperwork or collateral complexity.

The Bank of India agriculture gold loan interest rate generally ranges between:

• 8.60% to 9.00% per annum
• Agriculture gold loans help manage crop cycle expenses: Farmers use loans for seeds, fertilizers, labour payments, and irrigation costs during critical farming periods.
• Lower interest rates reduce repayment pressure: Competitive pricing helps farmers repay loans comfortably once harvest income is realized after crop cycles.
• Gold loans avoid reliance on informal borrowing: Farmers can access structured bank funding rather than high-interest local money lenders.
• Flexible loan options suit rural borrowers’ funding patterns: Loan structures support agricultural borrowers who need funding aligned with seasonal income patterns.
• Branch-level assistance helps farmers select proper schemes: Borrowers should discuss scheme suitability and repayment structure with branch officials before finalizing applications.

Agriculture gold loans offer quick liquidity without forcing farmers to sell valuable assets.

How to Apply for BOI Gold Loan?

Applying for a gold loan at Bank of India is simple and involves visiting a branch where your gold ornaments are appraised and documents verified. Since gold must be physically tested, online processing remains limited, and branch visits are necessary for final approval.

Steps to apply for a BOI gold loan include:

• Step 1: Visit the nearest Bank of India branch that offers gold loan facilities and approach the loan desk or customer service representative for guidance.
• Step 2: Request and fill out the gold loan application form carefully, ensuring all personal and loan-related details are accurate to avoid processing delays.
• Step 3: Submit required KYC documents and income-related proofs for identity verification and compliance checks conducted by the bank.
• Step 4: Present your gold ornaments or coins for appraisal, where a bank-appointed appraiser evaluates purity, weight, and eligible collateral value.
• Step 5: Based on the loan-to-value ratio and appraisal results, the bank sanctions the loan amount and completes documentation formalities.
• Step 6: After approval, the sanctioned loan amount is credited to your bank account or issued through a demand draft as per your preference.

Proper preparation helps borrowers receive quick sanction without unnecessary delays.

BOI Gold Loan Eligibility Criteria

BOI has established eligibility requirements to ensure borrowers meet minimum conditions before loan sanction. While gold loans are secured, borrower identity and credibility remain important.

To be eligible for Bank of India gold loan:

• Your age must be at least 18 years.
• You must own gold ornaments eligible for pledge.
• You must have a source of regular income.
• Minimum age ensures legal loan agreement validity: Borrowers must be adults capable of entering financial agreements legally under banking regulations.
• Ownership of gold ornaments is mandatory: Only gold jewellery or coins owned by the borrower can be pledged as loan collateral.
• Income source improves repayment confidence: Even though gold secures the loan, banks prefer borrowers with regular income to ensure repayment capacity.
• Eligibility supports faster loan processing: Meeting eligibility criteria reduces processing delays and improves sanction probability.
• Additional conditions may apply for agriculture loans: Borrowers seeking agricultural schemes may need additional landholding or farming-related documentation.

Eligibility verification ensures responsible lending practices.

Documents Required for BOI Gold Loan

To apply for a gold loan from Bank of India, borrowers must submit documents verifying identity and residence along with pledged gold ornaments.

Required documents include:

• 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.
• Landholding details if agricultural loan exceeds ₹2.50 lakh.
• Identity proof supports borrower verification compliance: Documents ensure borrowers meet banking regulations and prevent fraudulent loan applications.
• Address proof confirms borrower residence details: Accurate address documentation allows banks to maintain reliable borrower contact records.
• Photographs are required for loan file documentation: Passport-size photos are used for internal loan processing and collateral records.
• Agriculture loans require additional documentation support: Farmers availing higher agricultural loans must submit landholding details for scheme eligibility confirmation.
• Original documents should be carried for verification: Banks usually verify originals before accepting photocopies to prevent processing delays.

BOI Gold Loan Processing Fee

Bank of India charges a nominal processing fee for gold loan applications to cover administrative expenses, documentation verification, and loan sanction processing. The fee structure depends on the sanctioned loan amount and is kept affordable so borrowers are not burdened with high upfront charges. Processing fees should always be considered while comparing loan options because they impact the net amount received during disbursal.

The processing fee usually ranges from ₹125 and can go up to ₹1,500 depending on loan size.

Loan Amount	Applicable Processing Charge
Up to ₹50,000	Nil
Above ₹50,000 up to ₹1 lakh	₹250
Above ₹1 lakh up to ₹5 lakh	₹500
Above ₹5 lakh up to ₹10 lakh	₹1,000
Above ₹10 lakh	₹1,500

• Processing fees increase with higher loan amounts: Borrowers taking larger loans pay higher processing charges, though the fee remains moderate compared to unsecured loans.
• Small loan borrowers benefit from minimal or zero fees: Loans below ₹50,000 attract no processing fee, making small-ticket borrowing economical for urgent funding needs.
• GST may apply over processing charges separately: Borrowers should confirm if GST is charged additionally because it increases total upfront expenses slightly.
• Processing fees may be deducted from loan disbursal: In some cases, charges are adjusted from sanctioned amounts, reducing the net money credited to borrowers.
• Fee confirmation prevents misunderstanding at disbursal stage: Borrowers should request written fee details to avoid confusion during final loan documentation signing.

Understanding processing charges helps borrowers estimate the actual funds they will receive after loan approval.

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BOI Gold Loan Appraiser Charges

Appraisal of pledged gold is essential because the bank must confirm purity and net weight before sanctioning a loan. Bank of India appoints certified appraisers to conduct purity tests and determine valuation. Borrowers usually bear the appraiser charge, though it is generally minimal compared to loan size. The appraisal process protects both borrower and bank by ensuring fair and transparent loan eligibility calculation.

• Appraisers test gold purity and calculate net eligible weight: Purity testing ensures correct karat identification, affecting final loan amount calculation accuracy.
• Charges may vary depending on jewellery quantity assessed: Larger quantities or multiple ornaments can slightly increase appraisal cost due to extended evaluation requirements.
• Professional appraisal ensures fair sanction value: Proper evaluation prevents underestimation or overestimation of pledged gold value, ensuring transparent sanctioning.
• Net gold weight deduction influences eligible loan size: Jewellery with stones or mixed materials reduces net weight, lowering sanctioned loan amount accordingly.
• Borrowers should confirm appraisal results carefully: Requesting appraisal details helps borrowers understand final sanctioned amount and avoid confusion during disbursal.

Though minimal, appraisal accuracy plays a critical role in determining how much funding you receive.

BOI Gold Loan Maximum Limit

Bank of India sets a maximum limit on loan amounts available against pledged gold. However, borrowers must remember that the maximum limit is not automatically granted and depends on appraisal outcomes and internal lending norms. Loan approval considers purity, net gold weight, prevailing gold rates, and repayment capacity.

Currently, BOI allows borrowers to avail a maximum gold loan amount of:

• ₹30 lakh
• Maximum sanction depends on gold valuation results: Even if borrowers request higher loans, sanction depends strictly on appraised gold value and bank lending policies.
• Higher purity gold supports larger loan eligibility: Jewellery with better purity usually results in higher valuation, improving chances of receiving larger sanctioned amounts.
• Net weight deduction impacts sanction potential: Jewellery containing stones or non-gold elements reduces net gold weight, lowering maximum loan eligibility.
• Loan-to-value norms restrict total disbursement percentage: Borrowers receive only a permissible percentage of gold value rather than full market price.
• Borrowers should estimate eligibility before applying: Understanding approximate gold valuation prevents unrealistic loan expectations before branch appraisal.

Borrowers aiming for higher loan amounts should ensure pledged jewellery contains minimal non-gold components.

How to Calculate Bank of India Gold Loan Interest Rate?

Understanding interest calculation helps borrowers estimate repayment obligations accurately. Bank of India generally applies simple interest principles combined with EMI structures depending on scheme type. Borrowers can estimate EMI manually, though using calculators is easier and avoids calculation mistakes.

The EMI calculation formula is:

• EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:
P = Principal amount
R = Monthly interest rate
N = Number of instalments

• Loan amount directly influences EMI size: Larger principal amounts naturally increase monthly EMI obligations across the repayment tenure.
• Interest rate changes total repayment burden: Even minor interest rate differences significantly affect total interest payable for large loans.
• Tenure selection affects monthly affordability: Longer tenure reduces EMI but increases total interest cost across repayment duration.
• Manual calculations may lead to estimation errors: EMI formulas involve compounding, making calculator-based estimation safer and faster.
• Borrowers should calculate EMI before loan sanction: EMI awareness prevents over-borrowing and ensures repayment remains financially comfortable.

Example: Borrowing ₹5,00,000 at 9% for 24 months results in an EMI of approximately ₹22,842.

Bank of India Gold Loan Interest Rate Calculator

Using an online calculator simplifies EMI estimation and repayment planning. Borrowers only need to input loan amount, interest rate, and tenure to instantly view EMI values. This tool helps borrowers compare schemes and repayment options before finalising loans.

• Online calculators provide faster EMI estimation results: Borrowers receive instant EMI outputs without complicated formula-based manual calculations.
• Calculator helps compare tenure and EMI combinations: Changing tenure values helps borrowers choose repayment options matching monthly affordability levels.
• Supports better loan planning decisions: EMI visibility prevents borrowers from selecting unnecessarily high loan amounts that strain finances.
• Useful for comparing scheme interest differences: Borrowers can see repayment impact if interest rates differ between schemes or loan types.
• Encourages disciplined repayment preparation: Borrowers who plan EMI beforehand generally avoid repayment delays and penalties.

Borrowers can also pay interest online through BOI net banking services for convenience.

How to Close Gold Loan in BOI?

Closing your gold loan properly is necessary to retrieve pledged ornaments and prevent future account disputes. Borrowers must repay principal, interest, and applicable charges before closure. Bank officials guide borrowers through the formal closure procedure.

Steps to close BOI gold loan include:

• Step 1: Visit the Bank of India branch where the gold loan was originally taken and inform the loan officer about your intention to close the loan account.
• Step 2: Request the final outstanding amount statement, which includes the remaining principal, accrued interest, and any applicable charges or penalties.
• Step 3: Pay the complete outstanding loan amount using the available payment options approved by the bank branch.
• Step 4: Collect the No Objection Certificate (NOC) issued by the bank confirming that the loan has been fully repaid and closed.
• Step 5: Submit the NOC to the concerned department and request the release of pledged gold ornaments from bank custody.
• Step 6: Verify the ornaments carefully and collect all original documents before leaving the branch, ensuring the loan account is officially marked as closed.

Bank of India vs Other Banks’ Gold Loan Interest Rates

Comparing interest rates across banks helps borrowers choose the most suitable lender. While BOI offers competitive secured lending rates, comparing processing fees and repayment structures is equally important.

Bank Name	Interest Rate (% p.a.)
Bank of India	9.25% – 10.50%
ICICI Bank	10.00% – 17.00%
Axis Bank	9.50% – 16.00%
Canara Bank	8.75% – 10.25%
SBI	8.75% – 9.50%
Union Bank of India	8.80% – 10.15%
Indian Overseas Bank	9.30% – 10.25%
Punjab National Bank	8.85% – 9.85%
Bank of Baroda	8.75% – 10.60%
HDFC Bank	9.00% – 17.00%
Federal Bank	8.50% – 12.00%
Central Bank of India	8.80% – 9.80%

• BOI offers competitive secured loan pricing: Rates generally fall within public sector bank ranges, helping borrowers access affordable secured funding.
• Public sector banks usually provide lower starting rates: PSU banks often maintain lower rate ranges compared to private lenders offering faster service.
• Private banks may offer faster processing: Though convenient, private banks sometimes carry higher upper-end interest rates.
• Charges and service quality also matter: Borrowers should compare processing charges, transparency, and customer service alongside interest rates.
• Loan experience should guide lender selection: Choosing a bank depends on overall convenience, repayment flexibility, and appraisal transparency.

BOI Gold Loan Customer Care / Contact Number

Borrowers seeking assistance regarding BOI gold loans can contact customer support for guidance on application, repayment, or loan status.

• Give a missed call to 8010968370
• Send SMS “GOLD” to 7669021290
• Contact customer care at 1800 103 1906
• Visit the nearest branch for account-specific assistance

Final Thoughts

Bank of India gold loans in 2026 provide a reliable funding option for individuals who want to unlock gold value without selling ornaments. Competitive Bank of India Gold loan interest rate, low processing fees, and straightforward application processes make BOI suitable for secured borrowing. However, borrowers should compare schemes, calculate EMI, and understand closure terms before applying.

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