Union Bank Gold Loan Interest Rate: Slab Pricing, Decoded

Union Bank prices gold loans across an indicative 8.65%–9.9% band — and the single biggest lever is how much of your gold's value you draw: lower LTV, lower rate. Per ₹1 lakh borrowed, the monthly interest runs from ₹721 at the floor to ₹825 at the top slab.

Everything here is indicative, published for comparison — BankCreds lends nothing; verify live rates, charges and eligibility with the lender before acting.

Why Union Bank quotes three different rates for one pledge

Union Bank prices the cushion, not the customer: the smaller the share of your gold's value you draw, the safer the loan, the lower the rung you're quoted.

You draw (of value)	Indicative rate*	Monthly / ₹1 lakh
Up to ~55–60%	8.65%	₹721
~60–70%	9.25%	₹771
Max (75% cap)	9.9%	₹825

*Indicative framing of Union Bank's 8.65%–9.9% band; actual scheme boundaries vary. Verify at branch — the KFS binds.

Run your ticket down the table: ₹2 lakh at the 9.25% middle rung costs ₹1,542 monthly, ₹10 lakh costs ₹7,710 — and shifting one rung down saves ₹500 a month on the bigger pledge. LTV appetite is the negotiation.

Drawn	@8.65%/mo	@9.25%/mo	@9.9%/mo
₹2 lakh	₹1,442	₹1,542	₹1,650
₹5 lakh	₹3,605	₹3,855	₹4,125
₹10 lakh	₹7,210	₹7,710	₹8,250

The ladder against neighbours

Lender	Floor	Ceiling	Monthly/₹1L at floor
Union Bank	8.65%	9.9%	₹721
SBI	8.75%	9.6%	₹729
PNB	8.75%	9.25%	₹729
Indian Bank	8.8%	9.5%	₹733

Bands overlap more than logos suggest — scheme choice inside Union Bank's ladder often matters more than switching counters. Where a neighbour's floor genuinely undercuts, refinancing after release is routine.

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Union Bank gold loan — FAQs

Why does Union Bank charge different gold-loan rates on different schemes?

Same gold, different draw: Union Bank's cheaper schemes simply lend a smaller share of appraised value, and the extra buffer flows back as basis points. That's the whole spread from 8.65% to 9.9% — LTV appetite, priced honestly.

What does a Union Bank gold loan cost per month per ₹1 lakh?

Per lakh per month at Union Bank: ₹721 on the floor slab, ₹771 mid-board, ₹825 at the ceiling. A ₹3 lakh pledge therefore meters between ₹2,163 and ₹2,475 monthly — scheme choice is that gap.

Are Union Bank's advertised gold-loan rates guaranteed?

No — the 8.65%–9.9% band is indicative; your rate depends on scheme, ticket, tenure and (at some lenders) punctual-payment conditions. The Key Fact Statement handed to you before acceptance states the binding rate and APR; that document outranks every rate board and this page.

Can I move my gold loan from Union Bank to a cheaper lender later?

It's a normal move: settle Union Bank's outstanding, verify and collect your sealed packet, walk it to the cheaper counter. Plan the day so the gold is never uninsured in a drawer overnight, and let a multi-point rate gap — not a fraction — justify the fresh pledge costs.

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