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:

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.