Key Takeaways

City Union Bank offers gold loans as Non-Agriculture Gold Loan, Agriculture Gold Loan, and Gold-Based Overdraft, with interest rates ranging from 10.25% p.a. to 12.25% p.a., depending on the tenure and loan amount slab, as applicable under the City Union Bank gold loan interest rate 2025.
The City Union Bank jewel loan per gram rate and eligible loan amount are capped at 75% Loan-to-Value (LTV), calculated on the lower of market value or bank-appraised value of 22–24 carat gold, which directly impacts the City Union Bank gold loan interest rate for 1 lakh and overall borrowing eligibility.
Borrowers should factor in interest slabs, tenure choices, and processing charges, and use the City Union Bank Jewel Loan Rate of interest EMI calculator to estimate repayment impact before choosing a scheme, especially when planning EMIs for amounts like City Union Bank gold loan interest rate for 1 lakh.

A gold loan is a secured loan where gold jewellery is pledged to receive funds for short-term or medium-term needs. Many households use gold loans to manage medical expenses, education costs, or seasonal cash gaps without selling family jewellery.

If I need urgent funds of ₹2,00,000 for household expenses, I can pledge my gold ornaments at City Union Bank instead of selling them. The bank calculates my eligible loan amount while ensuring the LTV stays within 75% as per RBI rules. It is based on the city union bank jewel loan per gram rate and the applicable interest slab

Types of Gold Loans Offered by City Union Bank

City Union Bank officially offers the following gold-backed loan schemes:

Gold Loan Type	Interest Rate (p.a.)	Key Features
Non-Agriculture Gold Loan	Starting from 11.00%	Loan against household gold jewellery Loan value linked to gold purity Suitable for personal or business needs
Agriculture Gold Loan	Starting from 10.25%	Designed for farmers and allied activities Seasonal repayment flexibility Competitive city union bank agriculture gold loan interest rate
Gold-Based Overdraft	Starting from 11.70%	Overdraft facility against pledged gold Interest is charged only on the used amount Ideal for ongoing cash flow needs

These options allow borrowers to choose based on purpose, repayment comfort, and usage pattern.

Bonus Tip: City Union Bank has been steadily expanding gold loan availability through its semi-urban and rural branches, making agriculture and jewel loans accessible without digital-only processing. This helps farmers and small borrowers get faster branch-level approvals during seasonal funding needs.

City Union Bank Gold Loan Processing Fees & Charges

City Union Bank specifies processing charges separately for each gold loan type, based on loan amount and facility structure.

Gold Loan Type	Loan Amount Slab	Processing Fee
Non-Agriculture Gold Loan	Up to ₹10 lakh	0.15% + GST
	Above ₹10 lakh up to ₹25 lakh	0.10% + GST
	Above ₹25 lakh	0.05% + GST
	9-month tenure (all slabs)	0.25% + GST
	12-month tenure (all slabs)	0.25% + GST
Agriculture Gold Loan	Up to ₹3 lakh	Nil
	Above ₹3 lakh	0.15% + GST
Gold-Based Overdraft	All eligible loan amounts	0.25% + GST

Processing fees vary by loan type, tenure, and loan size under City Union Bank’s gold loan schemes.

How to Apply for City Union Bank Gold Loan?

Apply for a gold loan at City Union Bank by following a simple and guided process:

Visit the nearest City Union Bank branch or check the official website for scheme details.
Carry original gold jewellery along with basic KYC documents.
Allow the bank to assess gold purity and weight at the branch.
Review the eligible loan amount and applicable interest rate offered.
Choose the repayment option that suits your income flow and tenure preference.
Sign the loan agreement after understanding the terms and conditions.
Receive loan disbursal directly into the bank account.

Before finalising the loan, borrowers can check their expected repayment using the City Union Bank jewel loan rate of interest EMI calculator, which helps compare tenure options and interest impact clearly.

Conclusion

City Union Bank gold loans provide structured borrowing options with transparent pricing and multiple schemes. Borrowers can make better decisions by understanding rates, fees, and repayment methods in advance. Check eligibility, compare schemes, and apply confidently at the nearest branch.

FAQs Related to City Union Bank Gold Loan Interest Rates

1. What is the procedure, and what are the merits and demerits of taking a gold loan from City Union Bank?

At City Union Bank, the gold loan procedure includes pledging gold jewellery at a branch, gold valuation, document verification, and quick disbursal. The main merits of City Union Bank are faster approval, lower interest rates than personal loans, and flexible repayment. The demerits include interest variation by tenure and the risk of gold auction if repayment is delayed.

2. Is a gold loan from City Union Bank a good option for short-term funding needs?

Yes, a gold loan from City Union Bank is a good option for short-term needs because it offers quicker processing and lower interest rates compared to unsecured loans, while allowing borrowers to retain ownership of their gold.

3. I need quick cash at a low interest rate. Should I choose a City Union Bank gold loan instead of a home loan?

If quick funds are required, a City Union Bank gold loan is usually more suitable than a home loan. City Union Bank gold loans involve minimal documentation and faster branch-level processing compared to home equity or mortgage loans.

4. Can I buy gold bars or coins and take a loan against them from City Union Bank?

City Union Bank primarily accepts gold jewellery for gold loans. Gold bars and coins may not be accepted under City Union Bank’s standard gold loan schemes, so borrowers should confirm accepted gold forms directly at the branch.

5. Does City Union Bank offer gold loans at very low interest rates, like 3% under agriculture schemes?

City Union Bank may offer concessional interest rates under specific agriculture or government-supported schemes. However, rates like 3% are subject to eligibility, location, and scheme conditions, and do not apply to all City Union Bank gold loan customers.

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