Corporation Bank Gold Loan

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Corporation Bank Gold Loan Details Updated on
Loan Amount
  • Up to Rs. 20 lakhs for agriculture and priority sectors
  • Up to Rs. 25 lakhs for non-priority sector

Erstwhile Scheme: Rs. 10 thousand to Rs. 3 lakhs

Tenure Up to 18 months
Interest Rate 9.40% to 10.15%

Corporation Bank Gold Loan offers funds up to Rs. 3 lakhs or Rs. 25 lakhs (Union Bank of India). The tenure is up to 24 months at the lowest interest of 10.15%. The bank has a loan against the gold scheme for salaried individuals, self-employed professionals, businessmen, pensioners, and other eligible entities. It has a swift and transparent system in place to approve the loan. So, borrowers can expect a hassle-free credit of funds to their registered bank amount.

NOTE: From 1 April 2020, Corporation Bank has been merged with Union Bank of India. So, for the updated scheme for a gold loan and interest rate details, visit the official website of the Union Bank of India.

In this post, we will discuss Corporation Bank Gold Loan features, terms and conditions, eligibility criteria, interest rate, type of schemes, and frequently asked questions.

Features of Corporation Bank Gold Loan

The below mentioned financial requirement can be fulfilled with Gold loan Corporation Bank:

  • While Corporation Bank allowed up to Rs. 3 lakhs as loan. But the Union Bank of India offers up to Rs. 25 lakhs for the non-priority sector and up to Rs. 20 lakhs for priority sector and agriculture.
  • The tenure offered by the bank is up to 12 months. But, the Union Bank of India provides tenure up to 18 months.
  • Acceptable gold purity is 18 to 22 Carat. The gold weight for coins accepted is up to 50 grams per borrower.
  • The Union Bank of India/Corporation Bank offers loans against gold to arrange funds to create assets, meet expenses for crop production, or related activities such as fisheries, dairy, poultry, etc.
  • It also provides loans for unforeseen situations, emergencies such as ceremonies, education, marriage, medical treatment, and more.
  • After the amalgamation of banks, one can also apply for a working capital gold loan for business needs such as expansion, purchase of inventory, staffing, renovation, and more.

Terms and Conditions for Corp Gold Loan

Here are a few important rules to a loan against gold:

  • The bank does not offer the jewel loan to jewellery shop owners, jewellers, and pawnbrokers.
  • Apart from KYC documents, the bank may ask for additional documents for an agriculture gold loan. These include hypothecation of crop/gold asset, appropriate DPN note, Letter of continuity, Undertaking from the borrower/guarantor, gold loan pledge form, letter of general lien and setoff, credit report if necessary.
  • The loan to value ratio is up to 75% of the gold’s market value. The fund approved is based on the purpose of the loan and the fineness of the asset.
  • For an Agri gold loan, the finance is determined based on the crop production requirement or actual need.
  • The tenure for agriculture and demand loans is decided on the anticipated harvesting time, income generation, or marketing period of the crop.
  • The tenure for non-agriculture and term loan depends on the purpose of the loan, income generation from the crop production, marketing/harvesting season, etc. The period is up to 12 months.

Eligibility Criteria Corporation Bank Loan against Gold

Here are the eligibility norms:

  • The eligible candidates are individuals over 18 years of age
  • Resident individuals,salaried people,businessmen, pensioners, students, self-employed professionals, and housewives

Corporation Bank Gold Loan Interest Rates

The merger with Union Bank brought an update in the interest rate, which is between 9.40% and 10.15% currently. But Corporation Bank Gold Loan Interest Rates erstwhile was 10.60% to 12.60%as follows:

Features and Schemes Corp Bank Gold Loan Interest Rates
Jewel Loans for other reason than agricultural needs
  • 12.6%per annum interest rate if the amount is more than Rs. 2 lakhs.
  • 11.6%per annum interest rate if the amount is up to Rs. 2 lakhs.
Loan by mortgaging gold jewellery Connected to the base rate, at present it is 10.65%per annum
Jewel Loan for agriculture requirement
  • 10.6% per annum for 12 months
  • 11. 1% per annum for 12-24 months.
  • 7% per annum for short term crop production Jewel Loan

Types of Corporation Bank Gold loans

Corporation Bank Gold Loan Schemes are available for professionals and salaried individuals. The amount taken as a loan can be used for either multiple or specific purposes.

1. Jewel Loans apart from Agriculture (CAOD /CADL)

Applicant can keep their gold ornaments in the form of security and get a loan for personal expenses, housing, or educational purpose.

2. Mortgage of Gold Jewellery

In this scheme,the applicant can get a gold loan online and fulfil their personal or business requirements.

3. Agriculture Jewel Loan (ACAOD /ACADL)

In this scheme of the bank, the customer can place their gold jewellery. They can request a loan amount for agricultural reasons against the collateral. One can use a loan for crop production or the purchase of a farm. In this scheme,the applicant can get a maximum amount ofRs. 3 lakhs. Also, 12 months is the maximum duration to pay back the loan.

Apply for Gold Loan

Corporation Bank Gold Loan Frequently Asked Questions

Below provided are important questions about gold loan Corporation Bank.

Individuals engaged in small manufacturing units, small business, and retail trade can apply for this loan on gold. Apart from these self-employed customers, professionals and agriculturists are also applicable for Corporation Bank Corp Gold Loan. Pensioners and those who are salaried can also apply for this gold loan.

  • Documents for Identity proof and address
  • Any one of the address proofs (Passport, Aadhaar Card, Voter ID Card, Ration Card, Driving License, etc)
  • Any one of the identity proofs (PAN Card, Voter ID, Passport, Driving License, Aadhaar Card)
  • Duly filled and signed application form
  • Current photographs in passport size

There is no processing fee for a loan against gold up to Rs. 2 lakhs. A nominal fee is charged after this amount.

The borrower has to submit gold jewellery as collateral with the bank. The maximum loan amount, in this case, is up to Rs. 3 lakhs. Also, the tenure is only up to 12 months.

Corporation Bank has attractive offers for loans against gold jewellery. The bank charges a low rate of interest. The borrower can utilize the amount for any desirable and legit purpose. Loan tenure is flexible. So, the person can expect the maximum amount as per the gold weight, purity, and loan to value ratio (LTV). The procedure for loan sanctioning is transparent.

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