Karnataka Bank Gold Loan Interest Rates

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Karnataka Bank gold loan interest rate starts from 9.75% to 10.60%, depending on the jewel loan scheme. Karnataka Bank offers a variety of financial products in the market. The bank’s Gold Loan is one of the best products to apply for when you need urgent cash for expenses. The bank offers customised or special loans for people who avail the same for agricultural purposes.

These loans are also frequently opted for by other customers like Hindu Undivided Families, farmers, corporate, etc. However, these loans are not limited to the mentioned customer segment alone. At Loanbaba, you will find all the details about Karnataka Bank Gold Loan Rate and the jewellery loan schemes.

Karnataka Bank Gold Loan Interest Rates updated on

Below-mentioned are the Karnataka Bank Gold Loan Interest Rate details.

  • The lowest rate of interest applicable on the General Gold Loan is 10.60%.
  • KBL-Agri Gold loan: Pledging gold ornaments for agricultural purposes gets you an interest rate starting at 9.75%.
  • The Interest Rates depend on the MCLR. Currently, the MCLR for a year is 8.95%. It is 8.55% linked to 6 months MCLR under the KBL Apna Ghar scheme.
  • As of now, the base rate is applicable at 10.30%.

Karnataka Bank Gold Loan

Below-given are the features of gold loan Karnataka Bank.


You can apply for the loan to meet immediate financial requirements that may be for any purpose ranging from agricultural purposes to personal or business needs.

Amount of Finance:

The bank allows you to avail is Rs. 5 lakhs per account. The maximum number of accounts you can use is 5. Thus, you can get up to Rs. 25 lakhs as loan at once.

Period of loan:

The tenure of the loans is subject to a maximum period of 1 year.


You have to pay the entire principal amount at the end of tenure. However, the interest payout has to be in part and parcel every month till the tenure ends.

Karnataka Bank Gold Loan Interest Rate Calculator

Karnataka Bank jewel loan interest rate is as low as 9.75%. The loan is primarily meant for agricultural purpose. With help of Karnataka Bank Gold Loan Interest Rate Calculator, you will be able to understand the exact rate applicable on the loan. The calculator considers the following factors to determine a rate of interest on jewellery loan.

  • Loan Amount The amount of loan you are eligible for will depend on the gold’s purity and weight. The higher the purity and more the weight better the quantum of finance and lower the rate of interest.
  • Relationship with the bank You may get discounted rates of interest if already an existing customer with the bank. But it is not mandatory that the new customers will always have to pay a higher rate. If the bank is satisfied with your repayment capacity, than even as a new customer you can qualify for a lower rate of interest.
  • Loan Tenure A shorter tenure will imply a higher rate of interest, whereas, a longer tenure will attract lower rates of interest. But the interest payout will increase with increase in tenure, and vice-versa. So, as per your repayment capacity, choose a tenure that addresses your needs.
  • Loan to Value Ratio Just like the above-mentioned factors play a role in deciding the interest rate on jewel loans, loan to value ratio does too. As per the norms of the RBI, banks and NBFCs can offer up to 75% of the gold’s existing market value as a loan amount. But the lending institution has the right to offer a lower loan to value ratio depending on the gold weight and purity and other factors. Usually a lower rate is applicable on loans with higher LTV, and otherwise.

Documents Required for Karnataka Bank Gold Loan

Following are the documents needed to apply for a jewel loan at the bank.

  • You have to submit the basic KYC documents.
  • For address proof and identity proof, any of the government recognized identity and address proof will work.
  • For instance, Aadhar card, Voter ID card, Passport, Utility bills/rent or home purchase agreement (address proof), etc. are acceptable.

NOTE: PAN card is mandatory. You will also need 2 recent passport-sized photographs of yourself while making the loan application.

How to Apply for Karnataka Bank Jewel Loan?

To apply for jewellery loan at this bank, follow any one of the below-mentioned steps.

  • Online Application: To make an online application, visit the official website of the Karnataka Bank and check out the available jewel loan schemes. Compare all the plans and choose one that is suitable for your needs. Now access the loan application form and make sure to fill all the details correctly. After which, proceed to upload soft-copy of the asked documents before completing the loan application.
  • If you meet the Karnataka Bank gold loan eligibility criteria and have all the documents in place, the application will process faster. A customer care executive will connect with you to discuss further. You may however have to visit the bank for gold ornaments weighing and purity check to finalize a loan amount. The rate of interest and tenure will be decided accordingly.
  • Offline Application: If you want to apply at the branch office, then select one nearest to you and drop in to enquire about the loan plans. Again, select the one ideal for your needs and carry all the documents as proof, with passport-sized photographs, and collateral gold for the valuation process. After gold valuation procedure and documentation, the loan will be sanctioned, and you can expect the funds to arrive anytime.

Apply for Gold Loan

Frequently Asked Questions on Karnataka Bank Gold Loan Interest Rate

Below-mentioned are the FAQs about gold loan Karnataka Bank.

In order to pledge your gold, you can pledge any type of gold jewellery as collateral. You can also pledge gold coins subject to a maximum of 50 grams per borrower.

You can get up to Rs. 3 lakhs when the reason is an agricultural subvention. Rs. 25 lakhs is the maximum amount allowed for every account and Rs. 1 lakh for every borrower.

You must repay the principal amount as per terms of repayment mentioned in the loan agreement. Interest is charged annually. 18% GST shall apply to all banking commodities and services since July 2017.

After the approval of application, the sanctioned amount will credit to your bank account. Sometimes it may take up to a day for disbursal to happen. Otherwise the disbursal can take place within a few hours of loan sanction. However, no hard cash will be handed to you.

The bank may allow you to repay in a certain timeframe, even if you miss or delay EMIs. Despite all the communications and notices to clear the outstanding amount, if you fail to repay within the specified timeframe, then the bank has the right to auction the gold collateral to recover the dues. It is better to never miss payments and default on a jewel loan, because the repayment history will affect your credit score, making it difficult to avail a new loan in the future.

Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of Karnataka Bank.