Union Bank of India is one of the leading public sector banks offering secured gold loan facilities for individuals, farmers, and business owners who need quick access to funds. Gold loans are popular because they require minimal paperwork, fast approval, and flexible repayment options compared to unsecured loans. By pledging gold ornaments or coins, borrowers can unlock instant liquidity while still retaining ownership of their assets until repayment is completed.

• Also Read: Live Gold Price Today

The Union Bank Gold Loan Interest Rate in 2026 remains competitive, making it a preferred option for borrowers looking for affordable short-term financing. Union Bank provides multiple schemes designed for different needs, including retail borrowers, agricultural applicants, and MSME customers. Interest rates vary depending on the purity of gold, borrower category, and selected loan scheme.

• Also Read: Lowest Gold Loan Interest Rate in India

In this detailed guide, you will learn everything about Union Bank Gold Loan Interest Rate 2026, including highlights, scheme-wise interest rates, gold loan per gram value, agriculture loan details, maximum loan eligibility, and the overall loan structure.

Union Bank Gold Loan Highlights

Feature	Details
Name	Union Bank Gold Loan
Interest Rate	8.85% p.a. to 10.00% p.a.
Loan Amount	₹25,000 up to ₹50 lakh
Tenure	Up to 12 months
Schemes Available	Swarna Shakti, MSME Gold Loan Plus, Krishi Kamdhenu
Processing Charges	₹100 to ₹500 + GST

• Competitive interest rates for borrowers: Union Bank Gold Loan Interest Rate ranges from 8.85% to 10.00%, offering affordable financing against pledged gold assets.
• Flexible loan amount options available: Borrowers can access funding starting from ₹25,000 up to ₹50 lakh depending on gold purity and scheme selected.
• Short tenure supports quick repayment: Loan tenure generally extends up to twelve months, helping borrowers manage short-term funding requirements effectively.
• Multiple schemes cater to different needs: Retail, agriculture, and MSME borrowers can select schemes tailored to their specific financial requirements.
• Low processing charges enhance affordability: Processing fees remain minimal, making Union Bank gold loans accessible for small and medium loan borrowers.

Union Bank Gold Loan Types and Interest Rate 2026

Union Bank offers different gold loan schemes with varying interest rates based on gold purity and borrower profile. Interest rates differ for male and female borrowers and depend on whether the gold pledged is 22 karat or below 22 karat.

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

Interest rates for 22 Karat Gold

Loan Scheme	Male Borrower	Female Borrower
Union Krishi Kamdhenu	9.10%	9.00%
Union MSME Gold Loan Plus	9.75%	9.65%
Union Swarna Shakti Retail	8.95%	8.85%

Interest rates for below 22K up to 20K Gold

Loan Scheme	Male Borrower	Female Borrower
Union Krishi Kamdhenu	9.35%	9.25%
Union MSME Gold Loan Plus	10.00%	9.90%
Union Swarna Shakti Retail	9.20%	9.10%

• old purity directly affects interest rate: Higher purity gold generally qualifies for lower Union Bank Gold Loan Interest Rate compared to lower karat jewellery.
• Female borrowers often receive concessional rates: Certain schemes offer slightly lower rates for female applicants under Union Bank policies.
• Scheme selection impacts final repayment cost: Choosing retail, agriculture, or MSME schemes changes interest rate and repayment structure.
• Benchmark-linked rates ensure transparency: Rates are linked to MCLR or EBLR benchmarks which influence final pricing.
• Borrowers must verify final sanction rate: Final interest rate depends on scheme eligibility and branch-level approval conditions.

Union Bank Gold Loan Per Gram

Union Bank determines loan eligibility based on the market value and purity of pledged gold. Generally, borrowers receive up to 75% of the total value of gold, in line with RBI guidelines.

• Loan eligibility usually ranges between ₹4,680 per gram to ₹3,510 per gram depending on purity (24K to 18K).
• Per gram eligibility changes with gold rates: Daily gold market fluctuations directly influence loan valuation per gram during appraisal.
• Higher karat gold gives better valuation: Pure gold receives higher per gram value compared to lower purity jewellery.
• Loan-to-value ratio limits disbursal: RBI rules restrict sanction amount to protect both borrower and bank risk exposure.
• Final valuation occurs during appraisal: Net weight after deductions determines final loan amount offered.
• Per gram value helps estimate eligibility: Borrowers can roughly calculate expected loan amount before visiting the branch.

Union Bank Agriculture Gold Loan Interest Rate

The Union Krishi Kamdhenu scheme is the agriculture-focused gold loan offered by Union Bank. It supports farmers and agri entrepreneurs who require short-term financing for agricultural activities.

Interest Rates

• 22 Karat Gold:
  • Male Borrower: 9.10%
  • Female Borrower: 9.00%
• 20–22 Karat Gold:
  • Male Borrower: 9.35%
  • Female Borrower: 9.25%

Eligibility for Agriculture Scheme

• Individual gold owners (single or joint).
• Farmers, tenant cultivators, sharecroppers, agri entrepreneurs.
• Gold coins accepted up to 50 grams maximum.
• Designed to support farming activities: Agriculture gold loans provide funding for crop production and allied agricultural expenses.
• Higher loan amount availability: Borrowers can access agriculture financing ranging from ₹2 lakh up to ₹25 lakh.
• Flexible eligibility includes multiple farmer categories: Owner cultivators, tenant farmers, and agri entrepreneurs can apply.
• Gold coins accepted under conditions: Minted gold coins are eligible within specified weight limits per borrower.
• Competitive interest supports farmers: Affordable rates reduce financial burden during agricultural cycles.

Union Bank Gold Loan Maximum Limit

The maximum gold loan amount depends on the purity level and chosen scheme.

• 22 Karat Gold: Loans up to ₹50 lakh.
• Hallmarked 18–20 Karat Gold: Maximum up to ₹5 lakh.
• Higher purity allows larger loan amounts: Better gold quality significantly improves maximum eligibility limits.
• Scheme selection impacts sanction ceiling: Different schemes offer varying upper loan limits.
• Hallmarked gold improves valuation accuracy: Certification increases confidence in purity assessment and loan approval.
• Final sanction depends on appraisal outcome: Net gold weight determines approved amount.
• Borrowers should confirm limits before applying: Scheme-specific caps may vary across branches.

Union Bank Gold Loan Charges

Processing Charges

Loan Amount	Charges
Up to ₹0.50 lakh	NIL
₹0.50 – ₹1 lakh	₹100 + GST
₹1 lakh – ₹5 lakh	₹250 + GST
₹5 lakh – ₹10 lakh	₹400 + GST
Above ₹10 lakh	₹500 + GST

Appraisal Charges

Loan Amount	Charges
Up to ₹0.50 lakh	₹50 per account
₹0.50 – ₹5 lakh	0.40% (₹100–₹500) + GST
₹5 lakh – ₹10 lakh	₹600 + GST
Above ₹10 lakh	₹750 + GST

• Charges increase with loan size: Larger loans involve higher processing and appraisal costs.
• Small loans enjoy minimal fees: Lower loan categories attract reduced or nil charges.
• Appraisal charges cover valuation services: Professional testing ensures accurate loan sanction decisions.
• GST applies on most charges: Borrowers should include taxes while estimating total borrowing cost.
• Understanding charges avoids surprises: Reviewing fee tables helps borrowers plan finances properly.

Union Bank Gold Loan Procedure

• Evaluation of gold purity and weight.
• Market gold price consideration.
• Loan-to-value ratio calculation (maximum 75%).
• Processing fees deducted.
• Loan disbursal after agreement signing.
• Purity testing determines eligibility: Gold evaluation ensures accurate valuation before loan approval.
• Market rates influence sanctioned amount: Previous day gold price often used for valuation.
• LTV ratio ensures regulated lending: RBI rules cap maximum loan percentage against gold value.
• Processing fees deducted before disbursal: Borrowers receive net amount after charges deduction.
• Loan disbursal occurs after agreement signing: Funds credited once final documentation is completed.

Union Bank Gold Loan Eligibility Criteria

To avail a gold loan from Union Bank of India, borrowers must fulfil certain basic conditions related to ownership, identity verification, and regulatory compliance. Since gold loans are secured loans, eligibility requirements are simpler compared to unsecured loans.

• Ownership of eligible gold ornaments required: Applicants must own gold jewellery, ornaments, or coins either individually or jointly with acceptable purity standards.
• Gold coins allowed within prescribed limit: Minted gold coins are accepted provided total weight does not exceed fifty grams per borrower.
• Identity verification is mandatory: Applicants must submit government-issued identity proof such as Aadhaar card, passport, or PAN card.
• KYC and AML compliance required: Borrowers must comply with bank’s regulatory guidelines to ensure secure and legal lending practices.
• Eligibility depends on gold appraisal result: Final approval depends on purity testing and valuation carried out at the branch.

Borrowers meeting these criteria usually experience faster approval and smooth processing.

Documents Required for Union Bank Gold Loan

Proper documentation is necessary to complete the Union Bank gold loan application process. Since gold loans involve collateral, document requirements are minimal but mandatory.

• Government-issued photo identity proof: Aadhaar card, PAN card, passport, ration card, or other valid ID accepted by the bank.
• Address proof for verification purposes: Any official document showing current address including Aadhaar, passport, or utility-related proof.
• Recent passport-size photographs required: Clear and updated photographs must be submitted during application process.
• KYC documentation ensures compliance: Proper documentation helps the bank verify identity and maintain regulatory standards.
• Incomplete documents may delay approval: Borrowers should carry original documents to avoid repeated verification visits.

Keeping documents ready beforehand speeds up appraisal and sanction process.

How to Apply for a Union Bank Gold Loan Online?

Union Bank provides a convenient online application process allowing borrowers to start loan applications from home. Physical appraisal is still required, but online initiation saves time.

Online Application Steps

• Step 1: Visit the official Union Bank loan application page.
• Step 2: Select the Gold Loan option under product selection.
• Step 3: Fill in personal details accurately and submit the form.
• Step 4: Bank representatives visit or contact you to evaluate gold purity and weight.
• Step 5: Loan is processed and disbursed after successful verification.
• Online application saves branch visits: Initial details can be submitted digitally before appraisal stage.
• Bank representatives assist during evaluation: Officials guide borrowers regarding scheme and valuation.
• Accurate information ensures faster processing: Correct details prevent delays in verification and approval.
• Physical gold appraisal remains mandatory: Final approval depends on in-person gold evaluation.
• Loan disbursal occurs after verification completion: Funds are credited once purity and documentation are verified.

How to Apply for a Union Bank Gold Loan Offline?

Borrowers who prefer direct interaction can apply offline by visiting the nearest branch.

Offline Application Steps

• Step 1: Visit nearest Union Bank branch with gold ornaments and documents.
• Step 2: Fill out the gold loan application form provided at the branch.
• Step 3: Submit form along with required documents.
• Step 4: Bank evaluates purity and value of pledged gold.
• Step 5: Loan amount is sanctioned and credited after verification.
• Branch application provides immediate assistance: Borrowers can clarify queries directly with bank staff.
• On-the-spot appraisal speeds up processing: Gold evaluation happens immediately at the branch.
• Application form must be correctly filled: Errors in details may delay approval.
• Existing customers experience smoother processing: Pre-verified accounts reduce documentation checks.
• Final disbursal depends on evaluation outcome: Loan amount determined after purity assessment.

How to Close Gold Loan in Union Bank?

Union Bank offers structured repayment options to help borrowers close their gold loan efficiently.

Repayment Options

• Equated Monthly Instalments (EMIs): Regular EMI payments based on loan amount and tenure.
• Foreclosure: Borrowers may prepay the loan before maturity by paying foreclosure charges.
• Timely EMI payments prevent penalties: Regular repayment ensures smooth closure and quicker release of pledged gold.
• Foreclosure helps save interest cost: Early repayment reduces total interest burden despite applicable charges.
• Loan closes after complete repayment: Principal and interest must be fully cleared for closure.
• Gold ornaments returned after settlement: Bank releases pledged gold once account closure is confirmed.
• Closure confirmation should be collected: Borrowers should obtain acknowledgement after loan closure.

Union Bank Gold Loan Interest Rate Calculator

The online calculator helps borrowers estimate total repayment amount before taking the loan.

• Enter loan amount, tenure, and interest rate: Calculator uses provided values to estimate repayment.
• Shows interest component instantly: Borrowers can clearly understand total payable interest.
• Helps compare scheme affordability: Useful for evaluating multiple loan options before applying.
• Prevents manual calculation mistakes: Automated calculation ensures accurate repayment estimates.
• Supports better financial planning: Borrowers can choose repayment terms comfortably.

How to Pay Gold Loan Interest in Union Bank Online?

Union Bank provides multiple online repayment options for convenience.

Payment Methods

• Standing Instruction (SI): EMI automatically debited from Union Bank account monthly.
• Electronic Clearing Service (ECS): Automatic debit from non-Union Bank accounts.
• Post-Dated Cheques (PDC): EMI cheques submitted in advance at branches (non-ECS states).
• Automatic payments reduce missed EMI risk: SI and ECS help maintain repayment discipline.
• Digital repayment saves time: Borrowers avoid frequent branch visits.
• ECS supports non-Union Bank account holders: Easy repayment even without Union Bank account.
• PDC option supports traditional repayment: Useful where ECS facilities are not available.
• Timely payment prevents penal charges: Automatic deductions reduce risk of delay.

Union Bank vs Other Banks’ Gold Loan Interest Rates

Comparing lenders helps borrowers understand how the Union Bank Gold Loan Interest Rate compares with other major banks in India. While interest rate is an important factor, borrowers should also evaluate processing fees, repayment flexibility, loan-to-value policies, appraisal transparency, and customer service quality. Public sector banks generally provide stable interest ranges and predictable repayment terms, whereas private banks may offer faster disbursal but wider interest rate variations depending on borrower profile and loan structure.

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%

• Union Bank offers competitive mid-range pricing: Interest rates between 8.80% and 10.15% make Union Bank a balanced option among public sector lenders for gold loan borrowers.
• Public sector banks usually maintain stable interest structures: Government banks often provide predictable pricing and transparent repayment methods suitable for conservative borrowers.
• Private lenders may provide faster approvals: Private banks sometimes offer quick processing but can have higher upper-end interest rates depending on borrower risk profile.
• Borrowers should compare overall borrowing expenses: Processing charges, appraisal fees, and repayment flexibility significantly influence total repayment cost beyond interest rate alone.
• Comparing multiple lenders improves decision-making: Evaluating features across banks helps borrowers choose the most suitable gold loan scheme matching their financial needs.

Union Bank Gold Loan Customer Care

For instant assistance and loan-related queries, borrowers can contact:

• Customer Care Number: 18002333
• Customer support helps with loan status: Borrowers can check approval or processing updates easily.
• Assistance available for repayment queries: Customer care guides borrowers regarding EMIs and closure.
• Helps clarify scheme-related doubts: Borrowers can understand eligibility and charges before applying.
• Useful for application follow-up: Track pending documents and processing status.
• Support available across branches nationwide: Assistance provided regardless of branch location.

Final Thoughts

Union Bank of India continues to offer reliable and competitive secured borrowing options through its gold loan schemes in 2026. With the Union Bank Gold Loan Interest Rate ranging from 8.85% to 10.00% per annum, borrowers benefit from affordable financing backed by transparent valuation and flexible repayment structures. By understanding the interest rate structure, processing charges, appraisal fees, eligibility requirements, and repayment options, applicants can avoid unexpected costs and manage their gold loan responsibly from sanction to closure.

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