Union Bank is one of the leading banks in India which provides gold loan services to its customers as per their needs. Whether you’re looking to fund a new venture, consolidate debts, or meet any other financial obligation, Union Bank’s gold loan interest rates offer a beacon of financial stability.
Trust in our expertise and commitment to providing exemplary service, and embark on your financial journey with confidence. The purity and weight of the gold determine the Union Bank Gold Loan Interest rate (union bank of India gold loan interest rate) per gram, and the interest rate varies based on the type of loan.
Union Bank Gold Loan Details | |
Union Bank Gold Loan Details | Union Bank Gold Loan Rate starting From 8.80% Per Annum |
Processing fee | 0.5% of the Loan Amount |
Tenure Time | Up to 3 Years |
Loan Amount | Up to 40 Lakhs |
LTV (Loan –To- Value) | 75% Of the appraised Value of the Gold |
Union Bank Gold Loan Interest Rate Per Gram | Rate per Gram today is Rs 6180 (22 carat) |
Currently Union Bank Providing Five Types of Gold Loans:
- Union Gold Loan (Retail):
- This is the most basic and widely used gold loan option from Union Bank.
- You can borrow money for any personal need, such as medical emergencies, weddings, or education.
- Loan amount depends on the karat purity and weight of your gold ornaments.
- Interest rates are based on the one-year MCLR (marginal cost of lending rate) with a mark-up.
- Union MSME Gold Loan:
- This loan caters specifically to small and medium-sized enterprises (MSMEs).
- Helps MSMEs meet their business needs like working capital, inventory purchase, or equipment upgrade.
- May offer higher loan amounts compared to the Retail Loan.
- Interest rates are determined by the EBLR (external benchmark lending rate).
- Union Swarna Shakti Loan Scheme (Retail):
- This scheme is designed to empower women entrepreneurs by offering gold loans at concessional interest rates.
- Encourages women to start or expand their businesses.
- Typically have lower interest rates than the standard Retail Loan.
- Eligibility criteria might specify a minimum percentage of women ownership in the business.
- Union MSME Gold Loan Plus:
- This is a variant of the MSME Gold Loan with some additional features.
- May offer higher loan amounts or longer repayment tenures compared to the standard MSME Loan.
- Might come with additional benefits like overdraft facility or insurance coverage (check with the bank for specifics).
- May have a slightly higher processing fee than the standard MSME Loan.
- Union Secured Overdraft Gold Loan:
- This loan allows you to borrow money against your gold ornaments up to a sanctioned limit, similar to a credit line.
- You only pay interest on the amount you utilize, offering some flexibility.
- Loan limit is determined by the weight and purity of your gold.
- May have a higher interest rate compared to other fixed term gold loan options.
Union Bank Gold Loan Interest Rate
Union Bank is providing gold loan services to its customers through several schemes. Based on the customer’s profile, the bank offers a gold loan scheme to the customer, and the loan amount is offered based on the purity and weight of the gold. Union Bank Gold Loan interest rate depends on the type of loan Contest
Factors Affecting Union Bank Gold Loan Interest Rate
Loan Amount: The amount of gold you pledge as collateral directly affects the interest rate. Lower interest rates can result from larger loan amounts because the lender takes less of the risk.
Loan Tenure: The duration for which you take the loan can impact the interest rate. Shorter tenures might result in slightly lower rates, while longer could lead to higher rates.
Market Conditions: Gold market fluctuations and interest rates prevailing in the economy directly affect Union Bank Gold Loan interest rates, which may vary over time.
Loan-to-Value (LTV) Ratio: The loan-to-Value ratio, which represents the proportion of the loan amount to the value of the gold, can affect the interest rate. Lower LTV ratios could result in more favorable rates.
Borrower’s Credit Profile: While a Union Ban) Gold Loan doesn’t require a full credit check, the interest rate may still be slightly determined by your general creditworthiness.
Loan Type: The rates of interest on the various kinds of gold loans that Union Bank offers (including normal, overdraft, and rapid repayment) could change depending on the loan’s particulars.
Loan Repayment History: It may be possible to receive better interest rates on following loans if you have a history of repaying Union Bank Gold Loans on time.
Special Schemes: union bank of india may offer special schemes or promotional interest rates for specific periods, which can affect the interest rate you receive.
Union Bank Loan Rate Per Gram
There are many banks and NBFCs in India that give loans against gold. All banks and NBFCs charge interest rates according to their customers. Here we have given information union bank union bank gold loan rate per gram today.
1 Gram 22 Carat Gold | Value INR 6180 |
1 Gram 20 Carat Gold | Value INR 5618 |
1 Gram 18 Carat Gold | Value INR 5055 |
Features of Union Bank Gold Loan
All the banks and NBFSCs that provide you with gold loan facilities have features and benefits due to which customers are attracted to them, likewise Union Bank offers you a host of features that makes gold loan even more cost-effective for you. These are as follows:
Quick and Hassle-Free Process: The process of applying for an Union Bank Gold Loan is really easy. The simple procedure, which includes gold review, paperwork, and disbursement, guarantees that you will receive the money you require as soon as possible.
Competitive Interest Rates: Profit from alluring interest rates that make repayment simple and inexpensive. Union Bank strives to offer flexible terms based on your ability to repay the loan. You select the loan amount that best suits your needs, and you make easy equal monthly instalments to repay the loan with interest.
Flexible repayment options: Repayment of your Union Bank Gold Loan is flexible, allowing you to choose from various repayment plans with EMI-based or bullet repayment. The Union Bank website states that you have between 12 and 36 months to repayment the gold loan.
Eligibility Criteria for Union Bank Gold Loan
In order to receive the advantages of the Union Bank Gold Loan, you must meet a few basic qualifying requirements. These norms ensure the loan process is streamlined and you and the lender are protected. Here are the eligibility requirements:
The age of the applicant must be between 18 to 70 years.
Only Indian Citizen can apply.
Gold Purity will be Minimum 18 carat.
Required Documentation for a Gold Loan from an Union Bank
Aadhar Card.
PAN Card.
Ration Card.
Electricity Bill latest three month only.
2 Passport-size Photographs.
How to apply for the Union Bank Gold Loan?
To avail of an Union Bank Gold Loan, you need to follow a few simple steps:
- Offline
To use this method, you only need to find the Union Bank branch that is closed to you. After you discover it, all you have to do is take your gold and all the papers to the branch. To help you select the best plan for you, the experts will give you a detailed explanation of each one.
After choosing the proper scheme, all you need to do is fill out the application. Before authorizing the whole amount of your loan, the lender will next check the value of your gold.
- Online
If you choose to use the online option prior to visiting the branch, all you have to do is visit the official Union Bank website. There is a section titled “jewel Loans.” When you arrive, you will need to fill out a form. Certain details, such as your name, contact information, and email address, must be entered.
You will receive an email from the staff on your gold loan as soon as the form is submitted.
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FAQs Related to Union Bank Gold Loan Interest Rate
- What is the Union Bank Gold Loan Rate per gram today?
Ans. The borrower’s chosen plan and the gold’s purity determine the Union Bank gold loan rate per gram. A range of interest rates and loan-to-value (LTV) ratios are available for gold loan plans from Union Bank. The 75% portion of the gold’s total value that can be lent as a loan amount is known as the LTV ratio rate. With an Union Bank Gold Loan, you can get up to Rs 6,180 per gram (22 carat)..
- What is the Union Bank gold loan interest rate?
Ans. The Union Bank loan plan determines the interest rate for gold loans. The bank provides a range of credit programs with interest rates ranging from 7% to 10%. The customer’s credit history at the time of loan application, however, may also have an impact on the interest rate.
- How much loan can I get for 1 gram gold?
Ans. Unfortunately, it’s impossible to determine the exact loan amount for 1 gram of gold.But according to current gold price and gold purity we calculate expected amount like 22 carat INR 6,180, 20 carat INR 5618, 18 carat INR 5055.
- What is the Union Bank interest rate for 1 lakh gold loan?
Ans. An exact response to the question of what the interest rate on a one lakh gold loan is is unachievable. This is so because a number of factors affect the rate, such as:
Lender’s Reputation of the Borrower
Loan duration
Ratio of loans to values (LTV)
But generally speaking, interest rates on gold loans can range from 8% to 24% annually, with some rates for loans of up to one lakh falling in the lower to middle range.
To get the greatest bargain, it’s imperative to check rates offered by different lenders. Numerous lenders provide online gold loan calculators that let you calculate the interest rate according to your unique situation.