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Indian Bank Gold Loan Interest Rate 2024

Updated on April 11, 2024 , 38143 views

Indian Bank, long regarded as one of India's top government banks, provides a variety of promotions and incentives to its clients. The Indian Bank Gold Loan is another move the bank has made to align its operations with the needs of its clients. There are multiple schemes offered by the Indian bank for gold loans, along with other added benefits for the borrowers, like the Sovereign gold bond.

Indian Bank Gold Loan

These loan options help to address a variety of personal and financial needs. Read the article to know Indian Bank Gold Loan Interest Rates and other details.

Indian Bank Gold Loan Interest Rate

Loan Details
Indian Bank Jewel Loan Interest Rate 8.95% to 9.75%
Tenure 6 to 12 months
Loan Amount As per the gold's valuation being pledged

Indian Bank Gold Loan for 1 Gram Rate 2024

Currently, the Indian bank gold loan per gram interest rate is 8.95% to 9.75%.

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Indian Bank Gold Loan Advantages

The Indian Bank gold loan has several advantages that make it alluring to people looking to manage their finances during any event through investment. Here are the benefits of the Indian Bank gold loan schemes:

  • Both the loan application and disbursement processes are incredibly simple and practical
  • The Indian Bank gold loan has flexible repayment terms that provide convenience for the borrowers
  • With interest rates starting as low as 8.50%, Indian Bank gold loans have some of the lowest Market rates
  • You won't ever be required to pay any additional fees that aren't disclosed or expected of you because the entire application, disbursal, and repayment procedure is straightforward and hassle-free
  • The processing fees for the gold loan from the Indian Bank are also quite minimal, with a maximum cap of 0.3%
  • As long as you can use gold or jewellery as Collateral, the loan amount can be as high as necessary
  • For borrowers who take out an Indian Bank Gold Loan of up to Rs. 25,000, the processing charge is negligibly low or nonexistent
  • The loan amount is fixed based on the market value of the jewellery or gold the potential borrower has delivered

Types of Indian Bank Gold Loan Schemes

The Indian Bank offers the following sorts of gold loan programs:

1. Jewel Loan - Interest rate from 8.65% to 9.15% p.a

This gold loan can be used for personal necessities, consumption, family events, medical costs, or any other bankable activity other than speculative ones. Here are the key features of Jewel loan:

  • Anyone aged between 21 and 70 is eligible for this loan
  • You can get 70% of the market value of pledged jewels or the jewel's per-gram advance value, whichever is lesser, for loans over Rs. 5 Lahks and up to Rs. 10 Lakhs, whichever is lower
  • Repayment terms Range from 12 to 35 months
  • This loan must be repaid in interest in monthly instalments
  • A properly completed loan application form, identity evidence, and address proof are essential documents

2. Agricultural Jewel Loan - Interest rate 7% p.a.

This loan can cover short-term credit needs for growing crops, maintaining agricultural equipment, dairy, poultry, and fishery operations, buying fertiliser, seeds, and pesticides, paying off debt obtained from non-financial institutional lenders, etc. Important characteristics of agricultural jewel loans are as follows:

  • This loan is available to all small-scale farmers
  • Borrowing limits are 85% of the market value of gold jewellery pledged and approved by National Bank for Agriculture and Rural Development (NABARD) or District Level Technical Committee (DLTC), whichever is lower
  • Repayment terms range from six to twelve months
  • A properly completed loan application form, evidence of agricultural Land registered in the applicant's name and evidence of crop cultivation are among the required documents, along with proofs of identity and address, such as Voter ID cards, passports, aadhaar cards, and driver's licenses

3. Over Draft (OD) Against Gold Jewels

A new product - an overdraft Facility, has been introduced by the bank for consumers by Indian Bank. It comes with further perks and a set overdraft limit in place of a term loan facility. Important characteristics of overdraft facility include the following:

  • You can use the loan for anything other than speculation
  • The loan is available to the general public, women applicants, and COVID warriors who are at least 21 years old
  • You can borrow up to 75% of the market value of the pledged jewel or the advance value of the jewels per gram, whichever is lower
  • The loan amount ranges from Rs. 25,000 to Rs. 10 lakhs
  • Add-on advantages include the release of personalised chequebooks and Rupay cards
  • Documents that are needed include a properly completed loan application and identity and address verification

4. Sovereign Gold Bond Issued by Indian Bank

The Indian Bank Sovereign Gold Bond (SGBs), introduced under the Gold Monetization Program, provide government securities. Reserve Bank of India (RBI) issues these securities, which are made available for subscription. Here are the features of SGB:

  • They are quite secure because the Bonds are issued against the government's actual gold reserves
  • For bank loans, the Indian Bank gold bond can be used as collateral
  • The securities are extremely liquid and are always convertible into fiat money

Applying for Indian Bank Gold Loan Schemes

For everyone, applying for the Indian Bank Gold Loan plan is simple and hassle-free. You have the option of doing it offline or online. Below is further information about both procedures:


Here are the steps to follow to apply online for IB gold loan:

  • Visit the official Indian Bank Gold Loan application website
  • Depending on whether you are an existing customer, choose yes or no
  • Enter your name and mobile number, then enter the provided captcha
  • Enter the OTP you were sent following this
  • After you submit these details, a bank representative will contact you to provide guidance. Before you begin with the procedure, have the necessary paperwork available to ensure a smooth transaction
  • A time will be fixed for you to visit the branch so the bank can evaluate the worth of your jewellery. Your loan will then be released to your account


Here are the steps to follow to apply for an IB loan offline:

  • Bring your gold and jewellery to the nearby Indian Bank location
  • Your jewellery will be evaluated and valued by bank professionals
  • A loan amount will be approved for you based on the purity of the gold you have brought

How do you Pay the EMI on an Indian Bank Gold Loan?

You have three options for repaying your Indian Bank gold loan:

  • Statutory Directive (SD): The best way to make payments is through a standing instruction if you have an active record with Indian Bank. Each month, the EMI payment will be deducted automatically from the Indian bank account you specify

  • Electronic Clearing Service (ECS): If you have a non-Indian bank account and want your EMIs to be paid at a monthly cycle, you can use this approach

  • Post-Dated Checks (PDC): At the Indian Bank branch closest to you, you can submit post-dated EMI cheques from a non-Indian Bank account. It is important to submit a fresh set of PDCs on schedule


Both novice and experienced investors favour gold as an investment option in India. Aside from its inherent worth as an investment, gold is often bought in huge quantities for special occasions and family gatherings. Customers of Indian Bank can now obtain large loans against their gold holdings from the bank at reasonable interest rates and with added benefits.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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