Union Bank of India (UBI) provides gold loans starting at 9.30% per annum for loan amounts up to Rs 1 crore, with loan tenures of up to 1 year. You can avail Union Bank of India Gold Loan for personal or business needs by pledging your gold ornaments, jewelry, or gold coins as security.
Union Bank of India Gold Loan Interest Rates
Union Bank of India offers gold loans with interest rates ranging between 9.30% per annum and 10.65% per annum. The specific interest rates for different loan schemes may vary.
Rate of Interest for 18 to below 22 Karat
0.25% higher than the interest rates for 22 Karat
Rate of Interest for 22 Karat
Also read: Best Gold Loan Interest Rate
Gold Loan Interest Rates Offered By Partner Banks & NBFCs
Types of Gold Loans from Union Bank of India
Union Bank of India Gold Loan (Retail)
Purpose: Union Gold Loan (Retail) enables individuals to fulfill their personal and business-related financial requirements.
Tenure: The repayment tenure for Union Bank of India Gold Loan (Retail) can extend up to 1 year.
Loan Amount: The loan amount for Union Gold Loan (Retail) is up to Rs 5 lakh per borrower for 18-20 Karat gold and up to Rs 50 lakh for 22 Karat gold.
LTV ratio: The Loan-to-Value (LTV) ratio for Union Bank of India Gold Loan (Retail) is as follows:
- Up to 65% of the total value of 18-20 Karat gold pledged as collateral.
- Up to 75% of the total value of 22 Karat gold pledged as collateral.
Union Bank of India Swarna Shakti Loan Scheme (Retail)
Purpose: The Union Swarna Shakti Loan Scheme (Retail) enables individuals to fulfill their educational needs and to purchase or construct dwelling units.
Tenure: The repayment tenure for Union Bank of India Swarna Shakti Loan Scheme (Retail) can extend up to 1 year.
Loan Amount: For Union Swarna Shakti Loan Scheme (Retail), borrowers can avail up to Rs 5 lakh for 18-20 Karat gold and up to Rs 20 lakh for 22 Karat gold.
LTV ratio: The Loan-to-Value (LTV) ratio for Union Bank of India Swarna Shakti Loan Scheme (Retail) is as follows:
- Up to 75% of the total value of 22 Karat gold pledged as collateral.
- Up to 65% of the total value of 18-20 Karat gold pledged as collateral.
Union Bank of India Gold Loan (MSME)
Purpose: Union Gold Loan (MSME) enables businesses to fulfill their working capital requirements, purchase furniture & fixtures, and more.
Tenure: The repayment tenure for Union Bank of India Gold Loan (MSME) can extend up to 1 year.
Loan Amount: For Union Gold Loan (MSME), borrowers can avail up to Rs 5 lakh for 18-20 Karat gold and up to Rs 50 lakh for 22 Karat gold.
LTV ratio: The Loan-to-Value (LTV) ratio for Union Bank of India Gold Loan (MSME) is as follows:
- Up to 75% of the total value of 22 Karat gold pledged as collateral.
- Up to 65% of the total value of 18-20 Karat gold pledged as collateral.
Union Bank of India Secured Overdraft Gold Loan
Purpose: Union Secured Overdraft Gold Loan provides an overdraft facility that can be utilized for agriculture and allied activities, consumption, and other contingencies.
Loan Amount: The loan amount for Union Bank of India MSME Gold Loan Plus ranges from Rs 5 lakh to Rs 50 lakh.
LTV ratio: The Loan-to-Value (LTV) ratio for Union MSME Gold Loan Plus is up to 75% of the total value of 22 Karat gold pledged as collateral.
Union Bank of India MSME Gold Loan Plus
Purpose: Union MSME Gold Loan Plus enables MSME units to fulfill their working capital and business expansion needs.
Loan Tenure: The repayment tenure for Union Bank of India MSME Gold Loan Plus can extend up to 1 year.
Loan Amount: For Union MSME Gold Loan Plus, borrowers can avail up to Rs 5 lakh for 18-20 Karat gold and up to Rs 50 lakh for 22 Karat gold.
LTV ratio: The Loan-to-Value (LTV) ratio for Union Bank of India MSME Gold Loan Plus is as follows:
- Up to 75% of the total value of 22 Karat gold pledged as collateral.
- Up to 65% of the total value of 18-20 Karat gold pledged as collateral.
Other Features of Union Bank of India Gold Loan
Loan Amount: Union Bank of India offers gold loans up to Rs 1 crore for 22 Karat Gold and up to Rs 5 lakh per borrower for Hallmark gold of 18/20 Karat. The final loan amount depends on factors like the weight and purity of the gold offered as collateral, the market price of gold, and the Loan-to-Value (LTV) ratio set for the gold loan applicant.
Loan Tenure: The loan tenure offered by Union Bank of India for its gold loan schemes extends up to 1 year.
Repayment: Union Bank of India offers loan repayment options through lump sum or part payments. However, the entire loan amount, along with the accrued interest, must be repaid within a year.
Also read: Best Gold Loan EMI Calculator
Union Bank of India Gold Loan Fees & Charges
Processing Fees
Eligibility Criteria for Union Bank of India Gold Loan
- This loan is available to both new and existing customers.
- You can get a gold loan from Union Bank of India if you own gold jewelry or coins, either by yourself or jointly.
- The bank can give you a loan using your gold ornaments, jewelry, or certain pure gold coins sold by banks. Each customer can use coins weighing up to 50 grams.
Eligibility criteria for Union Swarna Shakti Loan Scheme – Retail
- Pawnbrokers and jewelry shop owners cannot apply for this loan scheme.
- You can apply for the loan if you own gold jewelry or coins, whether by yourself or with someone else.
- Branches need to make sure that all borrowers meet anti-money laundering (AML) and know your customer (KYC) requirements.
Eligibility criteria for Union MSME Gold Loan Plus
- Pawnbrokers and jewelry shop owners can't apply for this loan.
- Union Bank of India staff members aren't eligible for this loan.
- You can apply for the loan if you own gold jewelry or coins, whether alone or with someone else.
- Branches need to make sure all borrowers follow anti-money laundering (AML) and know your customer (KYC) rules.
Eligibility criteria for Union MSME Gold Loan Plus
- Branches must ensure that all borrowers meet KYC/AML requirements.
- Pawnbrokers and jewelry shop owners can't apply for this scheme.
- If you're an individual running a micro, small, or medium-sized enterprise (MSME), self-employed professional, proprietorship firm, business owner, woman entrepreneur, or involved in retail/wholesale trade and own gold jewelry/ornaments/coins, whether alone or jointly, you can apply.
Also read: Best Gold Loan Eligibility
Union Bank of India Gold Loan Documents Required
While Union Bank of India has not specified the documents required for availing gold loans, lenders ask applicants to submit the following documents:
- Identity Proof
- Residential Proof
- Signed application form
Also Read : Best Gold Loan Documents Required