Karnataka Bank Gold Loan Interest Rate – Charges, Eligibility & Complete Guide

Key takeaways:

• Use the Karnataka Bank EMI calculator to find a rate that fits your budget. Karnataka bank gold loan interest rates are lower than the personal loan.
   
• The gold loan interest rate depends on the loan amount, repayment period and scheme selected.
   
• As per the RBI guidelines,gold loans up to ₹2,05,000 can have an LTV of up to 85%. The process is easy when you use the calculator or apply in person. 

Bonus tip: 

Your gold jewellery has some non-gold stones that adds weight to the jewellery but zero value to the loan. Whenever you apply for a gold loan, it is important that you estimate the weight of the stones separately. This is because while giving you the loan amount, banks give you the amount for net weight and not the gross weight of the jewellery.

Imagine your gold loan as the security deposit of the flat that you give to the owner and in return you get the keys of the flat. Similarly, while applying for a gold loan, you give your jewellery as the security deposit. The bank in return gives you the loan amount immediately. 

For example, you need some money for your home renovation. You have 50 gm of gold before applying for the gold loan. 

The benefit in the above situation is that you can use your gold as a deposit instead of selling it. You just have to pay the interest to get back your gold. 

What is Karnataka Bank Gold Loan Interest Rate? 

Karnataka Bank offers a gold loan that lets you deposit your gold jewellery and get an immediate loan amount. Below is a table that provides details about the Karnataka bank gold loan: 

How to apply for a Karnataka Bank gold loan?

Step 1- go to the Karnataka Bank official page and login with your credentials. 

Step 2- look for the gold loan option and click on compare and apply. Enter your details including the weight of your gold. 

Step 3 - an expert from the bank will call you to guide the further process.

Or 

Offline process- you can take your gold along with the KYC documents to the nearest branch. The valuer at the bank will give you the details required. Once your gold is valued and your eligibility is confirmed, the loan amount is credited to you instantly.

You can apply for a gold loan with the Karnataka bank either online or at the branch. This is a simple and quick process. 

 
What are the types of gold loans in Karnataka Bank?

Karnataka Bank offers the following types of gold loans: 

These are the three types of gold loans that are offered by the Karnataka Bank and are used for different purposes. 

Gold loan per gram rate in Karnataka Bank

The rate depends on the loan amount, repayment tenure and other factors. The following are the details of the latest Karnataka Bank gold loan interest rates w.e.f 09.06.2025.

External Benchmark based Lending Rate (EBLR) is linked to the Karnataka bank gold loan for loans lower than ₹ 500,00,000.

Conclusion:

Karnataka Bank’s gold loan offers a reliable and convenient way to meet your financial goals by using your 22 carat gold jewellery. The application process is very easy whether it is online or offline by visiting the nearest branch. At Karnataka Bank, you get the highest value of your gold because of the  competitive interest rates and transparent charges.

FAQs

1- Which is better: a gold loan or personal loan? 

The gold loans are offered by various platforms by pledging the gold jewellery and in return loan amount is credited. On the other hand, personal loans are credited on the basis of profile , credit reports and history. Both loans are good but when cost and easy availability are considered the gold loan is always recommended as compared to personal loan. 

2- Does your credit score matter when applying for a gold loan? 

Yes, credit score matters when applying for a gold loan. The impact as compared to the other loans can vary. Some lenders check your credit score as it helps them to know your overall creditworthiness and risk. 

3 - Why don’t banks promote gold loans as much as personal loans even when they are secured? 

Banks do not promote gold loans as much as personal loans because gold loans are strictly regulated by the RBI and they carry lower rates of interest as compared to the personal loans. 

4- I applied for a gold loan. The bank gave me an agricultural gold loan but I am not into farming. Do I need to worry?

No, you do not have to worry. This happened because agricultural gold loans come under PSL that is Priority Sector Lending. It helps banks to meet their RBI  targets. This will not affect your credit score. You can go to the nearest branch and get professional help as well. 

5- Is Karnataka Bank gold loan interest rate fixed or does it change? 

Karnataka Bank gold loan interest rate is not fixed as it depends on the market conditions. The Bank links the gold loan interest rate to an External Benchmark Lending Rate (EBLR).