Karnataka Bank Gold Loan Interest Rate 2026: Processing Fee, Documents Required, Eligibility, How to Apply
Gold has traditionally been regarded as one of the most secure and liquid financial assets in India. In times of urgent financial requirements, rather than selling gold jewellery or ornaments permanently, borrowers often prefer pledging them to raise short-term funds. A gold loan allows individuals to unlock the monetary value of their gold while retaining ownership rights once the loan is repaid.
- Also Read: Live Gold Price Today
Karnataka Bank offers structured jewel loan schemes tailored to personal, agricultural, and business-related needs. The Karnataka Bank Gold Loan Interest Rate 2026 is competitive within the private banking segment and generally ranges from 9.89% per annum for agricultural purposes to approximately 10.09% – 10.54% per annum for general personal gold loans. Overdraft-based gold loan facilities may carry higher interest rates depending on benchmark rates and applicable spreads.
- Also Read: Lowest Gold Loan Interest Rate in India
Karnataka Bank’s gold loan portfolio includes multiple structured schemes such as:
- KBL Agri Gold Loan – for agricultural and allied activities
- General Gold Loan – for personal or business requirements
- KBL GOLD en CASH-OD – overdraft-based facility offering flexible withdrawal
Each scheme has distinct features in terms of interest rate, loan limit, tenure, and repayment structure. This article provides an in-depth, information-rich overview of the Karnataka Bank Gold Loan Interest Rate 2026, including valuation methodology, eligibility criteria, documentation requirements, maximum limits, and step-by-step application procedures.
Karnataka Bank Gold Loan Interest Rate Highlights
Below is a structured summary of the key parameters governing Karnataka Bank gold loans in 2026:
| Feature | Details |
| Interest Rate (General Gold Loan) | 10.09% – 10.54% p.a. |
| Interest Rate (Agri Gold Loan) | Starting from 9.89% p.a. |
| Overdraft Facility Rate | Approx. 10.81% – 13.52% p.a. |
| Maximum Loan (General) | Up to ₹50 lakh |
| Maximum Loan (Agri) | Up to ₹2.5 crore |
| Overdraft Limit | Up to ₹25 lakh |
| Loan Tenure | Up to 12 months |
| Loan-to-Value Ratio (LTV) | Up to 75% (RBI norms) |
| Customer Care | 1800 425 1444 / 1800 572 8031 |
| Email Support | info@ktkbank.com |
The interest rates are generally linked to the bank’s MCLR (Marginal Cost of Funds Based Lending Rate) and applicable spread. As MCLR changes periodically, the effective rate applicable to the borrower may vary accordingly.
Karnataka Bank Gold Loan Interest Rate 2026
The Karnataka Bank Gold Loan Interest Rate 2026 varies depending on the nature of the loan scheme selected. The bank categorises its gold loan products into personal, agricultural, and overdraft-based structures.
KBL Agri Gold Loan
The KBL Agri Gold Loan is specifically designed to support farmers and individuals engaged in agricultural activities.
- Interest Rate: Starting from 9.89% per annum
- Purpose: Crop cultivation, irrigation, purchase of seeds, fertilizers, pesticides, farm equipment
- Maximum Loan: Up to ₹2.5 crore (subject to eligibility)
The agricultural classification may allow for larger borrowing limits due to operational requirements in farming activities.
General Gold Loan (Personal Needs)
This scheme is meant for individuals requiring funds for personal, family, or business-related expenses.
- Interest Rate: 10.09% – 10.54% per annum
- Maximum Loan: Up to ₹50 lakh
- Tenure: Generally up to 12 months
Funds under this scheme can be used for:
- Medical emergencies
- Education expenses
- Business working capital
- Debt consolidation
- Personal financial needs
KBL GOLD en CASH-OD (Overdraft Facility)
The overdraft-based gold loan product provides enhanced flexibility.
- Interest Rate: Approx. 10.81% – 13.52%
- Maximum Limit: Up to ₹25 lakh
- Interest Charged: Only on utilised amount
This scheme is beneficial for borrowers who require intermittent access to funds rather than a lump-sum disbursement.
Factors Affecting Karnataka Bank Gold Loan Interest Rate
The final interest rate offered by Karnataka Bank on a gold loan or other loan products is determined after evaluating multiple financial and collateral-related factors. The rate may vary from one borrower to another based on the following key elements:
- Gold Purity and Weight: Higher purity gold, such as 22K ornaments, generally receives better valuation compared to lower purity items. The total weight pledged also determines the eligible loan amount, which can indirectly influence the interest rate structure offered by the bank.
- Loan Amount Sanctioned: The sanctioned loan amount plays a role in pricing. Certain loan slabs may come with slightly different interest rates depending on the size of the borrowing, internal policy guidelines, and risk exposure.
- Loan-to-Value (LTV) Ratio: The LTV ratio represents the percentage of the gold’s assessed market value that is approved as a loan. A higher LTV ratio may increase the bank’s risk, which can impact the final interest rate applied.
- Customer Relationship with the Bank: Existing customers with savings accounts, salary accounts, fixed deposits, or a strong repayment track record may be eligible for preferential rates or concessions based on their banking history.
- Prevailing MCLR Benchmark: Karnataka Bank’s lending rates may be linked to the Marginal Cost of Funds Based Lending Rate (MCLR). Any revision in the benchmark rate directly affects the effective interest rate charged on the loan.
- Internal Credit Risk Assessment: The bank evaluates the borrower’s overall financial profile, repayment capacity, and credit behaviour before finalising the applicable spread over the benchmark rate, which ultimately determines the total borrowing cost.
Karnataka Bank Gold Loan Rate per Gram
The loan amount sanctioned per gram is not fixed and depends on:
- Current market price of gold
- Purity of gold ornaments (generally 18–22 carats accepted)
- Net gold weight (excluding stones and impurities)
- Applicable LTV ratio (maximum 75% as per RBI guidelines)
The formula typically applied is:
Net gold weight × Prevailing gold rate × LTV percentage
Since gold prices fluctuate daily, the loan eligibility per gram also changes accordingly. Borrowers may receive higher loan amounts when gold prices are elevated.
Karnataka Bank Agriculture Gold Loan Interest Rate
The agricultural gold loan product under Karnataka Bank is structured to support rural credit requirements.
- Interest Rate: Starting from 9.89% per annum
- Loan Purpose: Agricultural inputs, farm maintenance, allied rural enterprises
- Maximum Limit: Up to ₹2.5 crore
The bank evaluates eligibility based on:
- Gold valuation
- Borrower’s agricultural activity
- KYC compliance
- Risk assessment parameters
This scheme helps farmers access working capital without liquidating productive assets.
Karnataka Bank Gold Loan Interest Rate for Farmers
Farmers can avail the KBL Agri Gold Loan at competitive interest rates starting from 9.89% per annum.
The loan structure is designed to align with crop cycles, allowing farmers to meet seasonal funding requirements. Repayment schedules may be aligned with harvesting periods depending on branch-level discretion and internal policy guidelines.
Karnataka Bank Gold Loan Procedure
The procedure to avail a gold loan at Karnataka Bank is structured and transparent.
Step 1: Application Submission
Borrower submits application online through the official website or visits the nearest branch.
Step 2: Gold Appraisal
Certified appraisers test:
- Purity
- Net weight
- Quality
Step 3: Market Valuation
Gold is valued based on the prevailing market rate.
Step 4: LTV Calculation
Loan amount is determined within RBI’s 75% LTV cap.
Step 5: Documentation
KYC documents are verified and loan agreement is executed.
Step 6: Disbursement
Loan amount is credited to borrower’s account after approval.
Processing time is typically short, subject to document verification.
Karnataka Bank Gold Loan Eligibility Criteria
Applicants must meet the following criteria:
- Minimum age: 18 years
- Indian citizen
- Must be owner of pledged gold
- KYC-compliant bank account
Eligible categories include:
- Individuals
- Farmers
- Hindu Undivided Families (HUFs)
- Business owners
- Agricultural entrepreneurs
Since gold serves as collateral, income proof is generally not mandatory, though the bank may request additional documents depending on loan size.
Documents Required for Karnataka Bank Gold Loan
Applicants must provide:
Identity Proof
- Aadhaar Card
- PAN Card (Mandatory)
- Passport
- Voter ID
- Driving Licence
Address Proof
- Aadhaar
- Utility bills
- Rent agreement
- Passport
Additional Documents
- Two recent passport-sized photographs
- Any additional KYC documents as required
PAN submission is compulsory for regulatory compliance.
Karnataka Bank Gold Loan Processing Fee
Processing charges are applied to cover administrative and operational costs associated with loan sanctioning.
- Charged as a percentage of loan amount
- Subject to minimum applicable fee
- GST applicable
The exact processing fee varies depending on the scheme selected and loan size. Borrowers should confirm applicable charges at the branch before finalising the agreement.
Karnataka Bank Gold Loan Maximum Limit
The maximum borrowing limits under Karnataka Bank gold loan schemes are structured as follows:
- General Gold Loan: Up to ₹50 lakh
- Agri Gold Loan: Up to ₹2.5 crore
- Overdraft Facility: Up to ₹25 lakh
Loan tenure is typically up to 12 months, with renewal options subject to bank policy.
Karnataka Bank vs Other Banks’ Gold Loan Interest Rates
Comparing lenders helps borrowers clearly understand how the Karnataka Bank Gold Loan Interest Rate stands against major public and private sector competitors. Karnataka Bank is known for relationship-based banking, competitive agricultural lending, and structured short-term gold loan products. However, borrowers should carefully evaluate interest rate ranges, processing fees, loan-to-value ratios, repayment structures, and renewal flexibility before selecting a lender.
| Bank Name | Interest Rate (% p.a.) |
| Karnataka Bank | 9.89% – 10.54% (General) | 9.89% (Agri) |
| Bank of India | 9.25% – 10.50% |
| 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% |
- Karnataka Bank offers competitive structured rates: Especially attractive for agricultural borrowers and relationship customers.
- Interest range is relatively stable: Compared to some private banks, the upper cap remains moderate.
- Public banks may offer slightly lower starting rates: But processing timelines and servicing models may differ.
- Total cost evaluation is essential: Processing fees, appraisal charges, renewal costs, and penal interest influence the effective borrowing cost.
- Comparing banks ensures optimal borrowing: Reviewing alternatives helps borrowers select financially efficient and secure gold loan solutions.
Karnataka Bank Gold Loan Customer Care
Karnataka Bank provides structured customer support for borrowers seeking assistance regarding gold loan applications, interest rates, repayment schedules, renewals, or account-related queries. Customers can directly contact the bank through toll-free numbers or email support for clarification and service requests.
- Toll-free customer care number (India): 1800 425 1444
- Alternate toll-free number: 1800 572 8031
- Email support: info@ktkbank.com
Borrowers are advised to keep their loan account number, registered mobile number, and identification details ready while contacting customer care to ensure quicker resolution.
- Read the loan agreement thoroughly
- Verify the applicable Karnataka Bank Gold Loan Interest Rate
- Understand renewal and penal interest terms
- Confirm appraisal and processing charges
- Check maturity date to avoid overdue penalties
Final Thoughts
The Karnataka Bank Gold Loan Interest Rate 2026 offers structured and competitive borrowing solutions starting from approximately 9.89% per annum, depending on the scheme and borrower category. With loan amounts extending up to ₹50 lakh for general purposes and significantly higher limits for agricultural requirements, Karnataka Bank positions itself as a reliable lender in the gold-backed lending segment.
Before applying, borrowers should:
- Assess repayment capability realistically
- Compare effective annual cost including fees
- Understand foreclosure and renewal terms
- Monitor gold price fluctuations
- Ensure timely repayment to protect pledged assets
When managed responsibly, a gold loan from Karnataka Bank can provide quick liquidity without permanently parting with valuable gold ornaments, making it a practical short-term financing solution.
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FAQs
What is the gold loan interest rate in Karnataka Bank?
The Karnataka Bank gold loan interest rate in 2026 generally starts from approximately 9.89% per annum for agricultural loans and ranges between 10.09% and 10.54% per annum for general personal gold loans. The exact rate depends on the scheme selected, prevailing MCLR, loan amount, and internal pricing guidelines of Karnataka Bank.
How to apply for a gold loan in Karnataka Bank?
You can apply for a Karnataka Bank gold loan either by visiting the nearest branch with your gold ornaments and required KYC documents or by initiating the application online through the bank’s official website. After gold valuation and document verification, the bank finalises loan terms and disburses funds to your account.
How to calculate gold loan interest in Karnataka Bank?
Interest is calculated based on the sanctioned loan amount, applicable interest rate, and tenure selected. Borrowers can estimate interest by multiplying the principal amount with the annual interest rate for the chosen tenure. The total repayment includes principal plus accrued interest, along with applicable processing and statutory charges.
How to close a gold loan in Karnataka Bank?
To close your gold loan, you must repay the outstanding principal amount along with accrued interest and any applicable charges. After settlement, visit the branch for verification and complete formalities. Once closure is confirmed, the bank releases your pledged gold ornaments from secure storage.
How to check the gold loan balance in Karnataka Bank?
You can check your outstanding balance by visiting your branch, contacting customer care at 1800 425 1444 or 1800 572 8031, or sending an email to info@ktkbank.com. The bank provides account details upon verification of identity and loan account information.
How to check gold loan status in Karnataka Bank?
To check your gold loan application status, you may contact the branch where the application was submitted or call the toll-free customer care numbers. Providing your application reference number or registered mobile number helps the bank retrieve and update your loan status efficiently.




