The City Union Bank Limited is a scheduled commercial in the private sector. The Bank has 550 branches and 1486 ATMs. The bank was founded on 31 October 1904 and located in Thanjavur, Tamil Nadu. The bank provides a gamut of technological services like net banking, mobile banking, self-service kiosks, Bulk Note Acceptors and Point of Sales etc. The bank offers loan products to service the financial needs of small individual customers to large industries.

City Union Bank Gold Loan

City Union Bank Gold loan is the quickest way to get funds for personal or business requirements. The funds from the loan can be used for weddings, education, business expansion or any other similar purpose. With minimal documentation and secure storage, the Gold Loan is a simple funding option to meet your needs.

Know More - Gold Loan: Factors to Remember

Different forms of Gold ornaments accepted

Gold Bangles, Gold rings, Gold anklets and Gold necklace many more, Gold bars, Gold Bricks, Gold biscuits, and Gold coins are acceptable. The purity of Gold that is acceptable here is 18karat-22karat.

City Union Bank Gold Loan Features and Benefits

  1. Loan amount from Rs.50,000 onwards- Minimum of Rs.50,000/- onwards Gold Loans for less than Rs 50000/- also available for rural markets
  2. Instant funds- Get funds instantly against your gold, and repay with affordable value.
  3. Low-Interest Rates- City Union Bank Gold Loan comes with competitive Interest Rates on Term Loan, Overdraft and EMI based loan. Repay your gold loan in easy lower EMIs, over a tenor of your choice.
  4. Collateral Held securely- Any gold surrendered to the bank as collateral is kept safely in a locker, so you don't have to worry about the safety or security of your gold.
  5. Quick and Efficient Servicing- Over the counter disbursement in just 60 minutes with minimal documentation
  6. Complete Transparency- Loan rates and charges are communicated up front in writing, along with the quotation, so you don't have to worry about any hidden costs or fees.

Know More - Gold Loan Per Gram

City Union Bank Gold Loan Eligibility Criteria

Age: 18 years and above

Profession: Any individual with a Steady source of income including Bank’s Employees, Pensioners

City Union Bank Gold Loan Documentation

  1. 2 passport size photograph
  2. ID Proof- Driving License / PAN Card / Passport Copy / Voter ID card / Aadhaar Card / Ration Card (Any one document needs to be submitted)
  3. Address Proof- Driving License / Voter ID Card / Ration Card / Aadhaar Card / Passport Copy / registered lease agreement with not older than 3 months utility bills in the name of the landlord (anyone)
  4. Proof of landholding in case of agriculture loan of more than Rs.1 lakh

City Union Bank Gold Loan Process

  1. The purity of the gold is checked by the bank based on which the loan amount is decided.
  2. The market rate for gold is checked and the rate of the previous day is taken into consideration.
  3. The maximum LTV (Loan to Value) set by the RBI is 75%.
  4. Once you have acknowledged the Gold loan amount and terms, the lender processes the application. The processing fees & other charges are deducted from your loan amount.
  5. After signing the final agreement, the loan amount is disbursed to your account.

Know More - Top Reasons why Gold Loan is the best borrowing option

Difference Between a Personal Loan and a Gold Loan

A personal loan comes into the category of unsecured loans however a gold loan is a secured loan. The consequence of this is the rates of interest of a personal loan are quite high because of high risk.


  1. Firstly, City Union bank provides a gold loan at very low rates of interest. City Union Bank Interest Rate is 11% per annum and onwards.
  2. Next, Loan processing charges are 1 percent plus GST.
  3. Also, Valuation Fee will be Rs. 250 for a loan up to Rs 1.5 lacs and Rs. 500 for a loan which is over and up to Rs. 1.5 lacs.
  4. Furthermore, Foreclosure charges: If closed within three months then it will be 2 percent with GST foreclosure charges and if closed within six months later it will be 1 percent plus GST foreclosure charges.
  5. Moreover, Charges you pay for late loan payment, are 2 percent per annum as penal interest over and up to interest rate.
  6. Besides, Renewal processing fees will more than Rs. 350 including tax.
  7. Finally, Prepayment or part payment charges will be more than 2 percent including GST (within three months).

FAQs About Gold Loan 

  1. How does  Gold Loan work?
     Loan on gold is very simple to understand. The Banks /NBFC provides you with funds against your gold ornament. The amount depends upon the gold weight.
  2.  Gold Loan is secured?
    Yes, it is essential to note that the loan on gold comes in the category of secured loans. Because in a Gold Loan the applicant put their gold ornaments into the bank’s locker as security or as collateral.
  3. What happens when you don’t repay a Gold Loan?
     If the borrower is unable to return the gold loan on time, then the bank is liable to sell his gold ornaments.
  4. To get a gold loan do I need a co-applicant?
     No, to avail Gold loan you don’t need any co-applicant 
  5. Is Gold loan better than a Personal loan?
    Yes, a Gold loan is better than personal Loan because in Gold Loan banks/NBFC's takes Gold ornament as well as a gold coin as collateral and in case of Personal loan it is un-secured and hence carries higher interest than a gold loan.
  6. What is the best online platform to avail gold loan?
    Dialabank is the best platform to get a loan. Dialabank provides you hassle-free process as well as the lowest interest rate in the market as compared to others.
  7. Is there any fee payable for the Gold Loan?
    Yes, you have to pay the loan processing fee (non-refundable) as well as Valuation fee.

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Gold Loan Interest Rate of Different Banks - Updated on 2019

Bank  Gold Loan Rate 
HDFC Bank 10.75%
Yes Bank  10.85%
Axis Bank 10.90%
SBI Gold Loan 11.50%
ICICI Bank 11.75%
IIFL Gold Loan 11.75%
Allahabad Bank Gold Loan 11.75%
Muthoot Gold Loan 12.00%
Federal Bank Gold Loan 12.00%
Manappuram Gold Loan  12.25%
IDBI Bank 12.25%
PNB Gold Loan 12.25%
* For any assistance regarding Gold Loan, call us on 95920-46860, our trained Relationship Managers will solve all your queries