Union Bank Gold Loan: Schemes, Per-Gram Advance, Charges & the Honest Trade-offs
Union Bank of India lends against pledged gold at indicative rates of 8.65%–9.9% p.a., from ₹10,000 up to ₹30 lakh, with tenures of up to 12 months retail; longer agri — no income proof, no CIBIL minimum, and per-gram advances up to about ₹8,134/g of 22k under RBI's 75% cap (today's reference). This PSU bank's full picture, tabs below.
Everything here is indicative, published for comparison — BankCreds lends nothing; verify live rates, charges and eligibility with the lender before acting.
The Union Bank scheme board, translated
Consumption-purpose pledge lending with EMI and bullet options; floor pricing among the sharpest published by any bank.
Crop and allied-activity lending at priority rates — a large book in the bank’s southern and Maharashtra geographies.
| Indicative rate band | 8.65% – 9.9% p.a. |
| Loan range | ₹10,000 – ₹30 lakh |
| Tenures | up to 12 months retail; longer agri |
| Processing | up to 0.5% + valuation |
| Monthly interest / ₹1 lakh | ₹721 – ₹825 |
Union Bank figures are indicative; the Key Fact Statement at sanction is binding. BankCreds is not a lender.
Deeper slab math lives on the Union Bank interest-rate page; purity-wise advances on the per-gram page.
Union Bank's gram math and its (short) eligibility list
| Purity | Value/g* | Max advance/g (75% cap) |
|---|---|---|
| 24k | ₹11,840 | ₹8,880 |
| 22k | ₹10,845 | ₹8,134 |
| 20k | ₹9,863 | ₹7,397 |
| 18k | ₹8,880 | ₹6,660 |
Computed on the 2026-09-01 reference at the 75% ceiling — Union Bank's scheme boards decide where under it you land; ≤₹2.5L tickets may reach 85%.
Eligibility is refreshingly boring: be 18+, own the ornaments you pledge, and carry KYC (PAN/Form 60 + Aadhaar or equivalent). Union Bank asks for no salary slips, no ITRs, no CIBIL threshold — the gold is the underwriting. What the appraiser establishes instead: net gold weight (stones and attachments excluded), assessed purity by assay, and ownership comfort.
The quiet variable is the purity reading — hallmarks help but assay decides, and a conservative reading at Union Bank's counter directly trims your per-gram advance.
From doorway to disbursal at Union Bank
- 1 Walk in with gold + KYC. Originals of PAN/Form 60 and Aadhaar; the ornaments; a photo. Working hours; gold-desk branches move fastest.
- 2 Appraisal in your presence. Weighing, stone deduction, purity assay at Union Bank's desk — insist on watching; the net-weight and purity figures being written are your loan, at up to ₹8,134/g of 22k today.
- 3 Scheme selection. This decides your rate more than negotiation will: Union Bank's board runs from 8.65% schemes to 9.9% max-advance ones. Ask the LTV of each.
- 4 Key Fact Statement + agreement. Rate, APR, every Union Bank charge, auction terms — RBI mandates the KFS before acceptance; on this counter that's where your exact slab inside 8.65%–9.9% becomes contractual. It outranks everything verbal.
- 5 Sealing & disbursal. Ornaments seal into a tamper-evident packet before you — verify Union Bank's itemized receipt against what went in — and funds (from ₹10,000) credit, same visit at practiced counters.
Documents stay minimal by design — KYC pair, photo, and ownership declarations for the pledge register. No banking history, no guarantors, no processing theatre.
The one rule that outranks all others: no fee, ever, before disbursal. Appraisal and processing charges settle at sanction, on the KFS. An upfront-payment demand — at Union Bank's name or anyone's — is fraud wearing a lender's logo.
What Union Bank charges — and the ways you can pay it back
Charge lines to expect
- •Appraiser fee
- •Processing per slab
- •Renewal fee
- •Stamp duty
Every line lands on the Key Fact Statement before you sign — reconcile the disbursed amount against it, and question any gap on the spot.
Repayment structures at Union Bank
- ✓EMI
- ✓Bullet (interest with principal at closure)
- ✓Interest-serviced monthly
The cheap path is boring: service interest monthly, clear principal at your exit event, avoid the accrued-interest snowball that eats renewal eligibility.
Custody at Union Bank, and the protections behind a default
How Union Bank holds your gold: Standard PSU dual-custody sealed-packet strongroom protocol; pledge register entries and receipts itemize each ornament with gross/net weights. Check the net-weight figure before signing — it, not the gross, drives your eligible amount and any future dispute.
The auction protections, plainly: regulated lenders cannot quietly sell your gold. Default at Union Bank triggers written notices and a cure window; auctions must be publicly announced with reserve prices tied to market value; and any surplus over your dues returns to you. Records of the whole sequence are yours to demand.
Practical safety is mostly documentation: photograph ornaments before pledging, verify the itemized receipt's weights, and check the seal at release. Do that, and custody risk at Union Bank reduces to the vault's — which is insured.
Where Union Bank wins
- ✓Published floor (~8.65%) among the lowest in the market
- ✓Small minimum ticket welcomes modest pledges
- ✓Agri gold franchise with genuine priority-sector pricing
Where it falls short
- !The wide band means retail borrowers can land near 10% — ask where you fall and why
- !12-month renewals, PSU-standard
- !Branch-to-branch experience varies more than at SBI
Real borrowing shapes at Union Bank
A Nashik grape-farm household pre-harvest: ₹4 lakh against gold in December for labour and crates, bullet-cleared in March when the export consignment pays.
A Hyderabad auto-parts trader covering a GST-refund gap — ₹7 lakh for 5 months at floor-band pricing his NBFC quote couldn’t approach.
Is this your counter?
Union Bank rewards the borrower who asks one extra question: with a band running 8.65–9.9%, where you land depends on scheme, ticket and branch discretion — the difference is real money. Farm borrowers and existing customers tend to see the floor; walk-ins the middle. Come with your gold, your KYC, and the willingness to ask for the sharper slab; the rate card supports it.
Union Bank gold loan cost calculator
Indicative reducing-balance arithmetic. Lender EMIs can differ with fees, rate resets and rounding.
Nearest competitors by rate floor
| Lender | Indicative band | Type |
|---|---|---|
| SBI | 8.75%–9.6% | PSU bank |
| PNB | 8.75%–9.25% | PSU bank |
| Indian Bank | 8.8%–9.5% | PSU bank |
Union Bank gold loan — FAQs
Why does Union Bank show such a wide gold-loan rate range?
How much can I borrow per gram at Union Bank?
Can I convert my Union gold loan to a lower rate later?
Do I need income proof or a CIBIL score for a Union Bank gold loan?
How much of my gold's value will Union Bank advance?
Can Union Bank charge me fees before disbursing the gold loan?
When can Union Bank auction my pledged gold?
Why choose a Union Bank gold loan over unsecured credit?
Is Union Bank's counter your best move?
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