Gold loans are one of the quickest ways to get financing in India. More than 65% of Indian families keep their savings in gold. The right bank with good rates can affect your borrowing costs by a lot.
We created this complete guide about Indian Bank’s gold loan rates per gram. Our goal is to help you make better decisions. You’ll find the latest interest rates and loan calculations here. The guide covers eligibility criteria and special schemes for 2025. This piece has everything you need to know about pledging gold jewelry or comparing different banks.
Current Indian Bank Gold Loan Rates Per Gram
Let’s take a closer look at Indian Bank’s latest gold loan rates per gram for 2025. Our analysis shows that Indian Bank’s interest rates range from 8.80% to 9.00% for regular jewel loans .
22 karat gold rate per gram
Indian Bank’s current rate for 22-karat gold is ₹4,290 per gram . The bank calculates loan amounts based on the gold weight you pledge:
- 10 grams – ₹42,900
- 50 grams – ₹214,500
- 100 grams – ₹429,000
18 karat gold rate per gram
The bank values 18-karat gold at ₹3,510 per gram .
. Here are the loan amounts you can get for different weights:
- 10 grams – ₹35,100
- 50 grams – ₹175,500
- 100 grams – ₹351,000
Rate variation based on location
Several factors can affect your gold loan rates. Indian Bank has special schemes with different rates:
- Agricultural Gold Loans:
- Interest rates start from 7.00% per annum
- These loans are designed specifically for farming activities
- You’ll get lower rates compared to regular gold loans
- Regular Jewel Loans:
- Standard rates range between 8.80% – 9.00%
- Maximum loan-to-value (LTV) ratio stands at 70%
Your final loan amount depends on the bank’s per-gram advance value or the current market value of your pledged gold, whichever is lower . The bank uses standardized testing methods to check gold purity before deciding your loan amount.
Farmers can benefit from competitive rates that Indian Bank offers for agricultural purposes. These loans help with short-term credit needs like buying pesticides, fertilizers, or seeds . The bank keeps its valuation process transparent and ensures you get fair rates based on your location and loan purpose.
Gold Loan Interest Rates and Charges
Let’s learn about Indian Bank’s gold loan interest rates and charges. Here’s a complete breakdown of the latest rates and fees.
Latest interest rate structure
Indian Bank provides different interest rates for specific loan schemes:
- Jewel Loan (Non-Priority): 8.80% – 9.00% p.a.
- Overdraft against Gold Jewels: 9.90% – 10.40% p.a.
- Agricultural Gold Loans: Starting at 7.00% p.a.
Women borrowers and senior citizens get better rates. Women can get overdraft facilities at 9.30% p.a.
Processing fee details
Your processing charges depend on the loan amount:
| Loan Amount | Processing Fee |
|---|---|
| Up to ₹25,000 | Nil |
| ₹25,000 to ₹5 lakh | 0.30% (min. ₹300) |
| ₹5 lakh to ₹1 crore | 0.28% (min. ₹1,500) |
Other applicable charges
You should know about these additional charges that might apply to your gold loan:
- Valuation Charges:
- ₹250 for loans up to ₹1.5 lakhs
- ₹500 for loans above ₹1.5 lakhs
- Prepayment Charges:
- 2% + GST within first 3 months
- No charges after 3 months
- Late Payment Penalties:
- Additional 2% p.a. above applicable interest rate
- Renewal Processing Fees:
- ₹350 + GST for loan renewals
The bank’s appraiser fee varies based on assessment and applicants must pay it . This charge applies whether your loan gets approved or not.
Farmers can benefit from special agricultural gold loans with lower processing fees. These loans are available at competitive rates starting from 7% per annum . The interest rates float and change with market conditions.
Loan Amount Calculation Method
Let me explain how Indian Bank calculates your gold loan amount. The bank uses a systematic approach that looks at several factors to help you get an accurate estimate of your loan amount.
Per gram valuation process
Indian Bank follows a detailed valuation process that looks only at the actual gold weight . The bank’s experts don’t include the weight of stones and making charges in their assessment. The loan amount calculation uses the current market rate or an average of recent rates .
Maximum loan-to-value ratio
The Reserve Bank of India (RBI) has clear guidelines for gold loan calculations. Indian Bank gives you up to 70% of your pledged jewels’ market value or the advance value per gram, whichever is lower . Here are the maximum limits for different loan categories:
- Bullet Repayment: Up to ₹35 lakhs
- Monthly Repayment: No upper limit on the maximum amount
- Overdraft Against Gold: ₹25,000 to ₹10 lakhs
Sample calculation examples
To name just one example, see how this works:
Let’s say you have a gold ornament that weighs 20 grams:
- Current market rate: ₹5,500 per gram
- Total gold value: ₹110,000 (20g × ₹5,500)
- Maximum loan amount (at 70% LTV): ₹77,000
Here’s the formula to calculate your loan amount:
Loan Amount = Gold Weight × Current Rate × LTV RatioYour final loan value depends on these key factors:
- Current market price of gold
- Purity of the pledged gold
- Weight of the actual gold content
- Applied LTV ratio
Agricultural loans come with a higher LTV ratio of up to 85% of the market value. These loans need approval from the National Bank for Agriculture and Rural Development (NABARD) or District Level Technical Committee (DLTC) .
Note that the loan amount calculation uses either the per-gram advance value or the current market value. The bank always picks the lower value to stay financially prudent . This approach balances risk while giving you substantial funding against your gold assets.
Eligibility Requirements
Indian Bank’s gold loan eligibility criteria are simple and accessible to everyone. Here’s what you need to know about who can apply and how to get started.
Age and income criteria
These are the simple eligibility requirements we look for:
| Category | Requirement |
|---|---|
| Minimum Age | 21 years |
| Maximum Age | 70 years |
| Nationality | Indian Citizen |
| Account Status | Savings/Current Account holder* |
*You can open a savings account before applying if you’re not already our customer .
Acceptable gold items
We accept these types of gold items as collateral:
- Gold jewelry between 18-22 karat purity
- Bank-issued gold coins up to 50 grams per customer
We don’t accept these items:
- Hair pins or cufflinks
- Gold watches or straps
- Gold idols or utensils
- White gold or diamond jewelry
- Gold bars or bullion
Required documentation
Your gold loan application needs these documents:
- Identity Proof (any one):
- Aadhaar Card
- Passport
- Voter ID
- Driving License
- PAN Card
- Address Proof (any one) :
- Utility bills
- Voter ID
- Passport
- Driving License
- Aadhaar Card
- Additional Requirements:
- Two passport-size photographs
- Completed loan application form
Farmers applying for agricultural gold loans must submit:
- Agricultural land ownership proof
- Proof of crop cultivation
Your gold loan application takes about 90 to 120 minutes to process when all documents are ready. First-time customers might need extra time because of account opening requirements.
Loans above ₹25 lakhs require Income Tax Returns. PAN card submission becomes mandatory when your annual income exceeds ₹5 lakhs .
Application Process
Our gold loan application process is simple and convenient. You can apply either online or at a branch based on what works best for you.
Online application steps
The digital platform makes applying quick and easy:
- Visit our official Jewel Loan page
- Click the “Apply for Loan” link
- Select “Submit request”
- Choose your customer status (existing/new)
- Enter your details:
- For existing customers: Savings account number
- For new customers: Mobile number
- Complete OTP verification
After completing these steps, our executive will contact you to guide you through the rest of the process.
Branch application procedure
If you prefer to visit our branch, here’s what you’ll need:
- Visit your nearest Indian Bank branch with:
- Your gold jewelry
- Required KYC documents
- Completed application form
- Meet with our branch executive who will:
- Guide you through the application
- Arrange for gold assessment
- Process your documentation
New customers should open a savings account first to speed up the process.
Processing timeline
Here’s how long each stage typically takes:
| Stage | Timeline |
|---|---|
| Original Application | 15-20 minutes |
| Gold Assessment | 30-45 minutes |
| Document Verification | 20-30 minutes |
| Loan Disbursement | Same day* |
*Subject to complete documentation and successful verification
Our dedicated helpline at 1800 4250 0000 provides support during your application process.
Key points about our process:
- The gold weight assessment excludes stones and other impurities
- We don’t schedule appointments on holidays, Sundays, and second/fourth Saturdays
- Branch appointments follow local working hours
- All terms and conditions match current bank policies
Agricultural gold loans come with specialized processing that needs extra documents to prove land ownership and crop cultivation. Our team ensures full verification while processing your application efficiently.
Gold Evaluation Process
Let me walk you through how we at Indian Bank figure out your gold jewelry’s exact value. We blend careful testing with standard valuation methods.
Purity testing methods
Here’s how we check your gold’s purity using several testing techniques:
- Hallmark verification – We look for BIS hallmark stamps that show certified purity levels
- Advanced XRF testing – A safe method that measures purity without damage
- Acid testing – Our skilled appraisers use this time-tested method
- Density testing – We use this as extra proof when needed
We mostly work with gold jewelry between 18 and 22 karats. This helps us stick to quality standards and protect what matters to you.
Weight assessment
Here’s exactly how we measure the weight:
- We weigh the complete ornament first
- We calculate deductions for:
- 5-10% off for impurities and dust
- More deductions for stones, wax, and thread
- Special care for jewelry with stones
Your hallmarked jewelry needs fewer deductions. We just take off the weight of stones and attachments, nothing more.
Valuation standards
We follow RBI rules strictly for gold valuation. Here’s what we do:
| Aspect | Standard |
|---|---|
| Base Price | 30-day average of 22-karat gold |
| Price Source | India Bullion and Jewelers Association Ltd. |
| Maximum LTV | Up to 75% of assessed value |
| Purity Range | 18-22 karat acceptance |
We look at several things at once during valuation:
- Market Dynamics:
- Today’s gold rates
- 30-day price averages
- Price differences by region
- Quality Parameters:
- Net weight after cuts
- Purity certification
- How good the piece looks
- Documentation Requirements:
- Full assessment certificate
- Weight check report
- Purity test results
Our expert appraisers bring 5-10 years of experience to each evaluation. You’ll see everything happen right in front of you at our bank.
Agricultural gold loans come with special benefits:
- Better LTV ratio options
- Special ways to calculate value
- Priority sector advantages
Your final valuation certificate shows:
- Details of each piece
- Both gross and net weights
- Market value math
- How much you can borrow
We update our numbers daily based on market changes. This way, you get the best possible value for your gold while we stay within the rules. Our team makes sure your assessment matches current market rates.
Repayment Options
We give you flexible repayment options at Indian Bank that match your financial needs. You can repay your gold loan with us in several ways.
EMI calculation
Our EMI-based repayment system helps you plan your finances better. Your monthly installments have both principal and interest components. You can choose our EMI scheme that runs up to 35 months instead of dealing with large one-time payments.
Here’s how we calculate your EMIs:
- Principal amount + Interest spread across loan tenure
- Interest calculated on reducing balance
- Option to pay only interest as EMIs
To cite an instance, on a gold loan of ₹1,00,000 at 8.75% for 12 months:
| Component | Amount (₹) |
|---|---|
| Monthly EMI | 8,729 |
| Total Interest | 4,748 |
| Total Repayment | 1,04,748 |
Bullet payment scheme
The bullet repayment option lets you pay the entire loan amount at the end of the tenure. This scheme comes with several benefits:
- Loan Tenure Options:
- 3 months
- 6 months
- 12 months
- Interest Rate Benefits:
- 8.25% for bullet repayment
- No monthly EMI obligations
This scheme works as follows:
- We calculate interest monthly throughout the tenure
- You pay total principal and interest at the end
- You can borrow up to ₹35 lakhs
Part payment facilities
Beyond regular EMIs and bullet payments, we give you flexible partial payment options to manage your loan better. Our part payment facility has:
- Regular Features:
- Pay as per your fund availability
- Lower your outstanding principal amount
- Reduce interest burden
- Special Benefits:
- No prepayment charges after 3 months
- Save interest on advance payments
- Mix with EMI payments
We’ve created special repayment schemes for agricultural gold loans:
- Simple and quick process
- Convenient repayment schedules
- Lower interest rates
Your borrowing needs are supported by:
- Overdraft facilities with 1-year renewable tenure
- Interest-only EMI options
- Loan refinancing choices
Your cash flow pattern determines the best repayment choice:
- Salaried individuals: Monthly EMI option
- Business owners: Bullet repayment
- Farmers: Agricultural gold loan scheme
- Seasonal income earners: Part payment facility
If you face temporary financial constraints, you can:
- Pay interest as EMIs
- Clear principal at tenure end
- Use flexible partial payment schedule
Our online banking platform lets you:
- Track repayment schedule
- Set up auto-debit facilities
- Monitor interest calculations
- Make advance payments
The EMI calculator on our website helps you:
- Compare different tenure options
- Calculate monthly obligations
- Plan your repayment strategy
Note that picking the right repayment option can affect your overall interest outgo by a lot. Our branch executives will help you pick the most suitable repayment plan based on your income pattern and financial goals.
Special Schemes and Benefits
Want to get the most from your gold assets? Indian Bank provides specialized gold loan schemes that fit different borrower needs. Let’s head over to our exclusive offerings that could help you get better terms and rates.
Agricultural gold loans
Our agricultural gold loan scheme comes with interest rates starting from 7.00% per annum. We designed this scheme for farmers and it offers:
- Usage flexibility for:
- Purchase of seeds, pesticides, and fertilizers
- Farm asset maintenance
- Short-term credit requirements
- Crop cultivation expenses
The scheme comes with easy processing and minimal paperwork. Every farmer can access this loan with convenient repayment schedules that line up with harvest cycles.
Women borrower schemes
We created specialized gold loan programs to meet women’s growing financial needs. Recent data shows a 16% jump in gold loan disbursals to women borrowers between December 2022 and December 2023.
Key features of our women-focused schemes:
| Feature | Benefit |
|---|---|
| Portfolio Share | 44% of retail loans |
| Interest Rate | Preferential rates |
| Processing Time | Same-day disbursement |
| Documentation | Simplified process |
The total outstanding retail loans for women borrowers jumped from ₹26 lakh crore to ₹30.95 lakh crore in December 2023. This surge shows our steadfast dedication to supporting women’s financial independence.
Seasonal offers
We introduce special promotional schemes during various seasons and festivals. Right now, we offer:
- Regular Jewel Loans:
- Interest rates from 8.80% to 9.00% p.a.
- Flexible repayment options
- Maximum loan amount up to ₹35 lakhs
- Overdraft Against Gold:
- Interest rates between 9.95% to 10.45% p.a.
- One-year renewable tenure
- Loan amounts from ₹25,000 to ₹10 lakhs
Our competitive rates and flexible terms have made us one of India’s leading providers of gold-backed financing. Our schemes help:
- Agricultural sector through specialized loans
- Women entrepreneurs seeking business capital
- People who need immediate funds
- Seasonal businesses managing cash flow
The growing preference for gold loans among aspirational consumers shows our program’s success. This trend comes from:
- Accessibility Features:
- Same-day processing
- Attractive pricing
- Secure storage facilities
- Financial Benefits:
- Lower interest rates than conventional loans
- Minimal documentation requirements
- Quick disbursement process
Agricultural borrowers get additional benefits:
- Easy adjustment of repayment after harvest
- Valuation based on pledged jewel worth
- Short-term credit availability
The surge in gold loan disbursals, especially among women borrowers, reflects our commitment to financial inclusion. This growth shows how India’s lending landscape is changing.
Rising gold prices and easier availability have encouraged more consumers to use their gold jewelry for credit needs. These specialized schemes provide:
- Cost Benefits:
- Competitive interest rates
- Minimal processing charges
- Flexible repayment options
- Operational Advantages:
- Swift processing
- Secure storage
- Professional valuation
Our tailored programs help meet financial needs of all types while staying true to transparent and fair lending practices. We keep updating our specialized schemes to match market changes and customer needs.
Conclusion
Indian Bank’s gold loans are a practical financing option with competitive interest rates that start at 8.80%. The bank’s transparent evaluation process and same-day disbursement make these loans perfect for your immediate financial needs.
Farmers can access agricultural gold loans at 7.00%, while women entrepreneurs can get business capital through specially designed programs that match their needs. You can choose from flexible repayment options like EMIs spread over 35 months or bullet payment schemes to manage your loan payments based on your financial situation.
The high loan-to-value ratio of up to 70% will give you maximum value for your pledged gold. The simple documentation process and professional valuation standards protect your interests and valuable assets effectively.
Indian Bank’s gold loan services combine great rates with quick processing and customer-friendly policies. The bank’s wide branch network and specialized schemes show our dedication to meeting your financial needs while keeping your gold assets completely secure.
FAQs
Q1. What are the current gold loan interest rates offered by Indian Bank? Indian Bank offers gold loans at interest rates ranging from 8.80% to 9.00% for regular jewel loans. For agricultural gold loans, rates start as low as 7.00% per annum.
Q2. How much can I borrow against my gold jewelry at Indian Bank? Indian Bank offers up to 70% of the market value of pledged jewels or the advance value per gram, whichever is lower. For 22-karat gold, the bank currently offers ₹4,290 per gram, while for 18-karat gold, it’s ₹3,510 per gram.
Q3. What are the eligibility requirements for an Indian Bank gold loan? To be eligible for an Indian Bank gold loan, you must be an Indian citizen aged between 21 and 70 years. You’ll need to provide identity and address proof, along with two passport-size photographs. The bank accepts gold jewelry between 18-22 karat purity and bank-issued gold coins up to 50 grams per customer.
Q4. What repayment options does Indian Bank offer for gold loans? Indian Bank provides flexible repayment options including EMIs for up to 35 months, bullet payment schemes for 3, 6, or 12 months, and part payment facilities. They also offer interest-only EMI options and loan refinancing possibilities to suit different borrower needs.
Q5. Are there any special gold loan schemes offered by Indian Bank? Yes, Indian Bank offers special schemes such as agricultural gold loans with lower interest rates starting from 7.00% per annum, women-centric schemes with preferential rates and simplified processes, and seasonal offers with competitive interest rates and flexible terms for various borrower segments.