Union Bank of India Gold Loan at Guaranteed Low Interest Rate

✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation Check Eligibility

The Union Bank of India offers gold loans for various purposes, including your personal needs, agriculture, Micro, Small and Medium Enterprises (MSMEs), and more. You can get up to ₹50 Lakhs by providing your gold assets as collateral. The loan is available at a low interest rate starting from just 9.95% per annum for a tenure of up to 12 months.

Furthermore, the loan-to-value (LTV) ratio offered is up to 70%, allowing to borrow a major portion of the gold’s current market value. It is easy to apply for the loan and the charges for processing your application are also minimal, ranging from Nil to ₹500 + GST.

Here are various gold loan schemes offered by Union Bank of India:

Union Krishi Kamdhenu gold loan Scheme (UKKGL)
Union Gold Loan-Agriculture (TLU04)
Union Swarna Shakti Loan Scheme-Retail (USSLS)
Union MSME Gold Loan Plus (UMGLP)

Union Bank of India Gold Loan Types and Interest Rates

The Union Bank of India offers gold loan interest rates starting from 9.95% per annum. Here are the applicable interest rates for different gold loan schemes, effective from 16.09.2024:

Product	ROI Details
Union Krishi Kamdhenu Gold Loan Scheme (UKKGL)	1-year *MCLR + 1.00% 10.00%
Union Gold Loan-Agriculture (TLU04)	1-year *MCLR + 1.00% 10.00%
Union Swarna Shakti Loan Scheme-Retail (USSLS)	*EBLR + 0.70% 9.95%
Union MSME Gold Loan Plus (UMGLP)	*EBLR + 0.70% 9.95%

Note: Rate of interest for below 22 Karat and up to 18 Karat gold would be applicable 0.25% higher.

Disclaimer- The rates are subject to revision from time to time at the discretion of the bank.

*MCLR- Marginal Cost of Funds-Based Lending Rate

*EBLR - External Benchmark Lending Rate

Union Bank of India Gold Loan Fees and Charges

Union Bank of India charges a processing fee when you apply for a gold loan. It covers costs like document checks and gold valuation.

Here are the fees and charges for different types of gold loans offered by the bank:

Loan Scheme	Loan Amount / Sanction Limit	Processing Charges
Union Krishi Kamdhenu Gold Loan (UKKGL)	Up to ₹25,000	NIL
	₹25,000 – ₹1 Lakh	₹100 + GST
	₹1 Lakh – ₹5 Lakhs	₹250 + GST
	₹5 Lakhs – ₹10 Lakhs	₹400 + GST
Union Gold Loan – Agriculture (TLU04)	-	₹500 + GST
Union Swarna Shakti Loan Scheme – Retail (USSLS)	Up to ₹5 Lakhs	0.40% of loan amount (Min ₹100, Max ₹500) + GST
	₹5 Lakhs – ₹10 Lakhs	₹600 per case + GST
	Above ₹10 Lakhs	₹750 per case + GST
Union MSME Gold Loan Plus (UMGLP)	Up to ₹25,000	NIL
	₹25,000 – ₹1 Lakh	₹100 + GST
	₹1 Lakh – ₹5 Lakhs	₹250 + GST
	₹5 Lakhs – ₹10 Lakhs	₹400 + GST
	Above ₹10 Lakhs	₹500 + GST

Disclaimer - The charges are subject to change from time to time at the bank’s discretion.

Key Features and Benefits of Union Bank of India Gold Loan

Union Bank of India offers higher loan amounts and provides convenient options through different types of gold loans. Here are some more benefits of getting a gold loan from the Union Bank of India:

High Loan Amount

You can borrow up to ₹50 Lakhs with a Union Bank of India Gold Loan.

No Restricted Usage

You can use this loan for a variety of personal and professional purposes like managing unexpected expenses, meeting educational costs, financing marriage requirements, and more.

Convenient Option

You can get the gold loan easily with minimal documentation and hassle-free processing of the loan application.

Low-interest Rates

You can get a gold loan at affordable rates starting from 9.95% p.a. depending on the gold loan scheme you opt for.

High LTV Ratio

You can get a high loan-to-value ratio of up to 70% with these loans.

Eligibility Criteria for Union Bank of India Gold Loan

Here is the eligibility criteria you need to meet in order to apply for an Union Bank of India Gold Loan:

Scheme	Eligible Applicants
Union Krishi Kamdhenu Gold Loan (UKKGL)	Individuals pledging gold ornaments/coins (max 50g per customer). Not applicable for jewellery manufacturers/exporters
Union Gold Loan – Agriculture (TLU04)	Farmers including owner cultivators Tenant farmers Oral lessees Sharecroppers Agri entrepreneurs
Union Swarna Shakti Loan Scheme – Retail (USSLS)	Any individual owning gold ornaments/jewellery/coins (single or joint ownership)
Union MSME Gold Loan Plus (UMGLP)	MSMEs Proprietors Business owners Women entrepreneurs Self-employed professionals Retail/wholesale traders owning gold ornaments/jewellery/coins (single or joint ownership)

List of Documents Required for Union Bank of India Gold Loan

Following are some of the documents required for applying for the gold loan:

Scheme	Required Documents
Union Krishi Kamdhenu Gold Loan (UKKGL)	Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, Driving Licence Address Proof: Aadhaar Card, Passport, Utility Bills, Ration Card Self-Declaration (for agricultural loans) stating the applicant is engaged in agriculture/allied activities and using the loan for an eligible purpose
Union Gold Loan – Agriculture (TLU04)
Union Swarna Shakti Loan Scheme – Retail (USSLS)
Union MSME Gold Loan Plus (UMGLP)	All documents from the schemes above Business Proof: UDYAM/MSME/SSI registration certificate (mandatory for MSMEs)

How to Apply for the Union Bank of India Gold Loan

Follow these simple steps to apply for the loan online:

1. Visit the official gold loan page of the Union Bank of India https://www.unionbankofindia.co.in/en/listing/gold-loan

2. Select any one of the cards that mentions the gold loan you prefer

3. Click on the ‘Apply Now’ option on the respective scheme

4. You will be redirected to the application page

The application page also has a Gold Loan Calculator, that you can use to calculate the loan amount you might be eligible for. This amount is decided based on the net weight of the gold you are pledging in grams.

Currently, as of February 2025, you can get ₹4,057.5 per gram of gold you pledge. However, the amount displayed is only for representation purposes, and the actual numbers may differ.

5. Once you calculate the loan amount, fill out your details in the application form. These details include your name, email address, mobile number, and pincode.

6. Enter the captcha code, agree with the terms and conditions, and click on the ‘Apply Now’ tab

To apply for the loan offline, visit the nearest branch office with the required documents. Reach out to a bank executive who will guide you through the process.

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What is the repayment tenure of the Union Bank of India Gold Loan?

The repayment tenure of a gold loan from Union Bank of India can extend up to 12 months.

Can I put gold assets of less than 22K as collateral to get a gold loan?

Yes, you can get a gold loan from the Union Bank of India if the purity of pledged assets is less than 22K. However, the loan amount you can get will be restricted to ₹5 Lakhs.

Can I jointly apply for a Union Bank Gold Loan?

Yes, you can jointly apply for a gold loan from the Union Bank of India.

What is the gold loan interest rate of the Union Bank of India?

The interest rates start from 9.95% p.a.

Do I need to have a guarantor to get a Union Bank of India Gold Loan?

No. It is not compulsory to have a guarantor when applying for a gold loan from the Union Bank of India. However, having a guarantor or co-applicant can boost your loan eligibility, especially if they have good credit health and repayment history. This usually helps you get better loan terms like low interest rates, longer tenures, and high loan amounts.

How much gold loan can I get per gram from Union Bank of India?

As of February 2025, Union Bank of India offers ₹4,057.5 per gram of pledged gold.

What are the foreclosure charges for Union Bank Gold Loans?

A 2% flat charge applies on the prepaid loan amount if the repayment period exceeds 36 months (for term loans). No prepayment charges apply to working capital facilities.