Does IOB offer the cheapest gold loan rate in India?

IOB's KCC Jewel Loan at 7% p.a. — and an effective ~4% p.a. with the 3% interest subvention for prompt payment — is among the cheapest gold loan rates available in India. It is, however, restricted to farmers / agriculturists for crop cultivation and allied activities (up to ₹3 Lakh per the KCC interest-subvention scheme). For non-agri borrowers, the cheapest IOB option is the JLSTF at RLLR - 0.35% = 7.75% p.a.

What is the IOB KCC Jewel Loan?

The IOB KCC Jewel Loan (KCCJL) is a priority-sector agricultural gold loan for crop cultivation, land development, investment and allied activities, available to owner-cultivators, tenant farmers, oral lessees and sharecroppers. It carries an interest-subvention rate of 7% p.a. (up to ₹3 Lakh), with an additional 3% subvention for prompt payment — taking the effective rate to ~4% p.a. Above ₹3 Lakh, the rate is MCLR + 0.90%. Processing charges are nil, and the limit is valid for 5 years subject to annual renewal.

What is the IOB JLSTF gold loan at 7.75%?

JLSTF (scheme code 33747) is IOB's lowest non-agri jewel loan rate at RLLR - 0.35% = 7.75% p.a. It is a retail-segment jewel loan that lets borrowers access funds at one of the cheapest non-agricultural gold loan rates in the market. Verify the current eligibility and terms at your IOB branch, as the rate floats with RLLR (currently 8.10%).

Does IOB offer a gold loan concession for women?

Yes. IOB Swarna Lakshmi (JLSWL) is a dedicated jewel loan for women borrowers at a concessional RLLR + 0.70% = 8.80% p.a. — 0.10% lower than the standard retail rate of 8.90%. It provides financial support against the pledge of gold to start a new venture or meet unforeseen medical / personal needs, up to ₹5 Lakh per borrower, with bullet repayment within 12 months.

What is the IOB Gold Loan Card?

The IOB Gold Loan Card (GLDPC) is a gold-backed overdraft facility sanctioned as a card for consumption purposes and contingencies. Loan amount ranges from ₹25,000 to ₹25 Lakh at RLLR + 0.80% = 8.90% p.a. The card is usable at ATMs (40% of limit; ₹20,000 per transaction and ₹1,00,000 per day for cash), Point-of-Sale (100% of limit) and e-commerce (100% of limit). Interest + principal are serviced at maturity (12 months from sanction). The minimum age is 18 with no exit-age restriction.

What is the IOB SME Gold loan?

IOB SME Gold (CSGLD — Cash Credit Against Gold) is for professionals, self-employed individuals and MSE units taking up business activities, at RLLR + 0.65% = 8.75% p.a. It is available as a Demand Loan (bullet repayment within 12 months) or Cash Credit (renewed annually, interest serviced as debited), up to ₹50 Lakh per borrower. Processing charges are nil.

How does IOB value the pledged gold? (IBJA valuation)

IOB follows an RBI-compliant, transparent valuation methodology. Net gold weight is determined after professional appraisal — using Hallmark verification, the Density & Weight method, the Touchstone method, the Acid test, and XRF Karatmeters at select branches — removing stones, wax, enamel and beads. The gold price used is the 30-day average closing price of the respective purity, as published by the India Bullion & Jewellers Association Ltd. (IBJA). The LTV ratio is scheme-dependent within RBI's framework, and the calculation is system-driven in IOB's Core Banking System (CBS) for uniformity across all branches.

What is the LTV (loan-to-value) on IOB gold loans?

IOB's LTV ratio is scheme-dependent and remains within the RBI's overall 75% cap framework. For example, Jewel Loan Suvidha offers a maximum loan per gram at 75% LTV (25% margin). The exact LTV for each scheme is set by IOB's credit policy and risk framework and reviewed periodically. The LTV calculation is system-driven in the CBS, ensuring uniformity and transparency. Confirm the exact LTV for your chosen scheme at your branch.

What gold purity does IOB accept for gold loans?

IOB accepts gold ornaments / jewellery and specially minted pure gold coins sold by IOB or other banks. The total weight of coins should not exceed 50 grams per customer. The bank checks hallmarking (e.g. 24K, 22K, 18K) and uses the Density & Weight, Touchstone, Acid and XRF Karatmeter tests to determine purity and net gold content. Gold bars / biscuits / bullion and non-bank-minted coins are not accepted.

What documents are required for an IOB gold loan?

Applicants need a PAN Card (KYC), identity proof (Aadhaar / Voter ID / Passport / Driving Licence), address proof, passport-size photograph(s), a duly filled & signed application form, and the original gold ornaments / jewellery / bank-minted coins for pledge. For agricultural jewel loans, land / cultivation records may be required; for SME Gold, Udyam / MSME registration helps. No income proof or salary slips are needed since the loan is secured against gold.

Is there any prepayment or foreclosure charge on IOB gold loans?

No. IOB does not levy any foreclosure or prepayment penalty on any of its jewel loan schemes. You can close the loan anytime within the tenure by repaying the outstanding principal plus accrued interest. Your pledged gold is securely stored and returned on full repayment — IOB explicitly promises 'No Closure Charges'.

Is IOB gold loan better than NBFC gold loans like Muthoot or Manappuram?

IOB gold loans are RBI-regulated and offer some of the cheapest rates in India — from 7% (KCC, effective ~4% with subvention) to 8.90% (retail) — far below large NBFC rates (often 12%–26%). IOB also offers transparent IBJA-based valuation, XRF Karatmeter appraisal, NIL processing on agri & MSME schemes, and no closure charges. NBFCs may offer faster processing, wider doorstep service and more relaxed documentation. Choose IOB for the lowest cost and the women/MSME concessions; choose an NBFC for speed and convenience. Compare all options on our banks directory and NBFC directory.

All Gold Loan Banks

🏛️

Indian Overseas Bank Gold Loan

Among India's cheapest gold loans — IOB KCC Jewel Loan at 7% p.a. (effective ~4% with subvention), JLSTF at 7.75%, women's Swarna Lakshmi at 8.80%, MSME Gold at 8.75%, plus the IOB Gold Loan Card overdraft and transparent IBJA-based valuation.

Interest Rate

RLLR / MCLR-linked; from 7.00% (KCC) to 8.90% (retail)

≈ 7% – 8.9% p.a. · RLLR 8.10% (w.e.f. 15 Dec 2025) · MCLR 8.80% (w.e.f. 15 Jun 2026)

Reviewed 30 Jul 2026Verify on IOB website →

Indian Overseas Bank's gold loan interest rate ranges from 7% p.a. (KCC Jewel Loan, effective ~4% with the 3% prompt-payment subvention) to 8.90% p.a. (standard retail), on an RLLR/MCLR-linked floating basis (RLLR 8.10%, MCLR 8.80%). Key rates: JLSTF 7.75%, SME Gold 8.75%, Swarna Lakshmi (women) 8.80%. Loans go up to ₹50 Lakh per borrower against gold valued at IBJA's 30-day average price at up to 75% LTV, with NIL processing on agri & MSME schemes, nil documentation charges, and no foreclosure charges. The IOB Gold Loan Card offers an ATM/POS/E-com overdraft up to ₹25 Lakh.

Data source: Indian Overseas Bank official website · Reviewed 2026-07-30 · Indicative only.

💰 Maximum Loan Per Gram Today

At 75% LTV (RBI cap) · Live indicative gold rate

24K Gold (999)

₹12,236 / gram

Rate: ₹16,315/g · Max LTV 75%

22K Gold (916)Selected

₹11,213 / gram

Rate: ₹14,950/g · Max LTV 75%

18K Gold (750)

₹9,174 / gram

Rate: ₹12,232/g · Max LTV 75%

Loan amount = (today's gold rate per gram × 75%) · Indicative only. Final amount depends on branch appraisal of purity and net weight.

🧮 Check Your Indian Overseas Bank Gold Loan Eligibility

Enter your gold weight to estimate the maximum loan amount, monthly interest, and EMI at Indian Overseas Bank's indicative rate of 7.00% p.a.

Gold Weight20 grams

Purity

Loan-to-Value (LTV)75%

RBI caps gold loan LTV at 75%

Tenure (months)12 months

Estimated at 7.00% p.a.

Maximum Loan Amount

₹2,24,250

Market Value

₹2,99,000

Rate / Gram

₹14,950

Monthly Interest

₹1,308

EMI (12m)

₹19,404

Open Full LTV Calculator →

Estimate based on indicative gold rate and Indian Overseas Bank's published rate of 7.00% p.a. Actual disbursal depends on branch-level gold appraisal, net weight (after deducting stones/wax), and KYC.

📋 Indian Overseas Bank Gold Loan — Quick Facts

📊Interest Rate

RLLR / MCLR-linked; from 7.00% (KCC) to 8.90% (retail)

≈ 7% – 8.9% p.a.

⚖️Max LTV

Up to 75% (RBI cap; scheme-dependent, system-driven)

RBI-mandated cap

📅Tenure

Bullet up to 12 months · EMI up to 60 months · OD 12 months (annual renewal)

💸Processing Fee

7% p.a. (effective ~4% with 3% prompt-payment subvention)

🏆Max Loan

₹50 Lakh per borrower (Suvidha EMI / SME Gold)

🪙Min Loan

₹25,000

⚡Disbursal

Quick sanction & disbursal at branch after gold appraisal

🚪Prepayment

Nil — no foreclosure / prepayment charges on any jewel loan scheme

📑 Indian Overseas Bank Gold Loan Schemes Compared

Side-by-side comparison of all 9 gold loan variants from Indian Overseas Bank. Choose the scheme that matches your repayment preference.

Scheme	Interest Rate	Tenure	Repayment	LTV	Processing Fee	Best For
IOB KCC Jewel Loan (KCCJL) — Crop Cultivation	7% p.a. with interest subvention (effective ~4% on prompt payment)	Limit valid 5 years, subject to annual renewal	Interest serviced as applicable; principal per KCC norms	Up to 75% (RBI cap)	Nil	Farmers / agriculturists (owner cultivators, tenant farmers, oral lessees, sharecroppers) for crop cultivation, land development & allied agri — the cheapest gold loan at IOB
IOB JLSTF — Lowest Retail Jewel Loan	RLLR - 0.35% = 7.75% p.a. (floating)	As per scheme terms	Bullet / EMI (scheme-dependent)	Up to 75% (RBI cap)	0.20%, max ₹150/₹500 + GST	Retail borrowers seeking the lowest non-agri gold loan rate at IOB (7.75%)
IOB Swarna Lakshmi (JLSWL) — Women Borrowers	RLLR + 0.70% = 8.80% p.a. (concessional for women)	Maximum 12 months — bullet repayment (principal + interest at maturity)	Bullet — repay the entire loan within 12 months	Up to 75% (RBI cap)	0.20%, max ₹150/₹500 + GST	Women borrowers — exclusive concessional rate (8.80%) to start a venture or meet unforeseen medical/personal needs, up to ₹5 Lakh
IOB Jewel Loan Suvidha (JLSUV)	RLLR + 0.80% = 8.90% p.a.	Bullet: 12 months (₹0.25L–₹15L) · EMI: up to 60 months (₹0.25L–₹50L)	Bullet (12m) or EMI (up to 60 months) at 75% LTV	75% (25% margin) — max loan per gram	0.20%, max ₹150/₹500 + GST	Meeting margin money for housing loans, registration charges, project price escalation — flexible bullet or long EMI tenure
IOB Jewel Loan — Others (JLOTH)	RLLR + 0.80% = 8.90% p.a.	Up to 35 months	Bullet / EMI	Up to 75% (RBI cap)	0.20%, max ₹150/₹500 + GST	Any unforeseen medical / personal consumption needs — up to ₹50 Lakh per borrower
IOB Gold Loan Card (GLDPC) — Overdraft	RLLR + 0.80% = 8.90% p.a.	12 months from sanction (interest + principal at maturity)	Overdraft — usable at ATM (40% limit), POS (100%) & E-com (100%)	Up to 75% (RBI cap) — max loan per gram	0.20%, max ₹150/₹500 + GST	Borrowers wanting a gold-backed overdraft / card usable at ATMs, POS & online (₹25,000 – ₹25 Lakh)
IOB SME Gold (CSGLD) — Cash Credit Against Gold	RLLR + 0.65% = 8.75% p.a.	Demand Loan: 12 months bullet · Cash Credit: renewed annually	Demand Loan (bullet) or Cash Credit (interest serviced as debited)	Up to 75% (RBI cap)	Nil	Professionals, self-employed & MSE units for business activities — up to ₹50 Lakh, NIL processing fee
IOB Agri Easy (AGEJL) — Agricultural Jewel Loan	One-Year MCLR + 0.05% ≈ 8.85% p.a.	Maximum 12 months — bullet repayment	Bullet — principal + interest at the end of the term	Up to 75% (RBI cap)	Nil	Farmers for crop cultivation, land development, investment & allied agri activities — up to ₹30 Lakh, NIL processing
IOB Swarna Samridhi (JLSWS) — Agri Short-Term	Six-Month MCLR + 0.10% ≈ 8.85% p.a.	6 months — bullet repayment	Bullet — principal + interest at the end of 6 months	Up to 75% (RBI cap)	Nil	Farmers meeting short-term credit needs for agriculture & allied activities — up to ₹10 Lakh, NIL processing

All rates and fees are indicative and sourced from Indian Overseas Bank's official website. Verify current charges at your branch before applying.

🌾 IOB Standout Rates & RBI-Compliant IBJA Valuation

IOB's gold loan standout features are its industry-beating rates — the KCC Jewel Loan at 7% p.a. (effective ~4% with prompt-payment subvention) and JLSTF at 7.75% — combined with a transparent, RBI-compliant valuation that uses IBJA's 30-day average gold price and XRF Karatmeters for purity testing.

KCC Jewel Loan — 7% (effective ~4%)

Interest-subvention scheme for farmers; 7% p.a. with an additional 3% subvention for prompt payment. Up to ₹3 Lakh, NIL processing, 5-year limit with annual renewal.

Transparent IBJA Valuation

Gold valued at the 30-day average IBJA closing price of the respective purity; net weight fixed via Hallmark, Density, Touchstone, Acid & XRF Karatmeter tests. System-driven LTV in the CBS.

IOB Gold Loan Card

A gold-backed overdraft card usable at ATM (40%), POS (100%) & E-commerce (100%), from ₹25,000 to ₹25 Lakh at 8.90% p.a.

✅ Eligibility — Who Can Apply

✓Any individual aged 18 years and above owning gold ornaments / jewellery / coins
✓Existing IOB customers as well as new customers willing to open an account
✓Women borrowers eligible for the Swarna Lakshmi concessional rate (8.80% p.a.)
✓Farmers — owner cultivators, tenant farmers, oral lessees & sharecroppers — for agricultural jewel loans (KCC, Agri Easy, Swarna Samridhi)
✓Professionals, self-employed individuals, proprietors & partners of MSE units for the SME Gold scheme
✓Loans granted against gold ornaments / jewellery and specially minted pure gold coins sold by IOB or other banks (total coin weight up to 50 grams per customer)
✓Staff are also eligible for the IOB Gold Loan Card

📄 Documents Required

Your Document Checklist

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PAN Card (mandatory KYC)RequiredIdentity proof — Aadhaar / Voter ID / Passport / Driving LicenceRequiredAddress proof (if different from identity document)RequiredPassport-size photograph(s)RequiredDuly filled & signed jewel loan application formRequiredLand / cultivation records (for agricultural jewel loans — KCC, Agri Easy, Swarna Samridhi)Udyam / MSME registration (for SME Gold / Cash Credit Against Gold)Original gold ornaments / jewellery / bank-minted coins for pledgeRequired

🪜 How to Apply for a Indian Overseas Bank Gold Loan

Follow these 6 steps to get your gold loan disbursed. The entire process is typically completed the same day.

📱

Choose your jewel loan scheme & apply

Pick the right IOB jewel loan scheme — KCC (7%), JLSTF (7.75%), Swarna Lakshmi (women, 8.80%), Suvidha, JL-Others, the Gold Loan Card overdraft, SME Gold (8.75%), or the agri schemes (Agri Easy, Swarna Samridhi). Apply at any Indian Overseas Bank branch. Carry your gold ornaments and original KYC documents.

⚖️

Professional gold appraisal (RBI-compliant)

IOB's authorised jewel appraiser determines the net gold weight using multiple methods — Hallmark verification (24K/22K/18K), the Density & Weight method, the Touchstone method, the Acid test, and XRF Karatmeters at select high-potential branches. Stones, wax, enamel, beads and other extraneous items are removed so only the net pure-gold content is valued.

📊

Transparent IBJA-based valuation

Your gold collateral is valued using the 30-day average closing price of the respective purity, as published by the India Bullion & Jewellers Association Ltd. (IBJA). This fair, transparent benchmark is used both for fixing the lending rate and for monitoring the LTV ratio. The LTV calculation is system-driven in IOB's Core Banking System (CBS) for uniformity across all branches.

📋

Select repayment type & tenure

Choose Bullet Repayment (up to 12 months — principal + interest at maturity), EMI (Suvidha up to 60 months), or Overdraft / Cash Credit (renewed annually). For the Gold Loan Card, you get a card-usable overdraft — ATM (40% of limit, ₹20K/txn & ₹1L/day cash), POS (100%) and E-commerce (100%). Choose based on your cash-flow needs.

✍️

Submit KYC & complete documentation

Submit your PAN, identity proof, address proof, photograph and the duly filled application form. For agricultural jewel loans, land/cultivation records may be required; for SME Gold, Udyam / MSME registration helps. Sign the pledge agreement. There are NO documentation charges. KYC norms as per RBI guidelines apply.

💰

Quick sanction & disbursal

IOB promises express speed of sanction, lower processing charges, competitive interest rates, and no closure charges. On completion of appraisal and documentation, the sanctioned amount is credited to your IOB account (or loaded on the Gold Loan Card for overdraft use). Pledged gold is securely stored and insured; it is returned on full repayment.

💸 Fees & Charges Breakdown

Charge	Amount
Interest rate — KCC Jewel Loan (agri, with subvention)	7% p.a. (effective ~4% with 3% prompt-payment subvention)
Interest rate — JLSTF (lowest retail)	RLLR - 0.35% = 7.75% p.a.
Interest rate — SME Gold (MSME)	RLLR + 0.65% = 8.75% p.a.
Interest rate — Swarna Lakshmi (women)	RLLR + 0.70% = 8.80% p.a.
Interest rate — JL-Others / Gold Loan Card / Suvidha (retail)	RLLR + 0.80% = 8.90% p.a.
Interest rate — Agri Easy / Swarna Samridhi (agri)	MCLR-linked ≈ 8.85% p.a.
Processing charges (Agri & MSME schemes)	Nil
Processing charges (Retail — up to ₹3 Lakh)	0.20% of loan amount, max ₹150 + GST
Processing charges (Retail — above ₹3 Lakh)	0.20% of loan amount, max ₹500 + GST
Documentation charges	Nil
Prepayment / foreclosure charges	Nil — on all jewel loan schemes
Penal charges	2% on overdue amount / on outstanding above DP-Limit (day-count basis)

⚖️ Pros & Cons of a Indian Overseas Bank Gold Loan

An honest look at where Indian Overseas Bank shines — and where other lenders might suit you better.

✓Pros

+Among the cheapest gold loan rates in India — KCC Jewel Loan at just 7% p.a. (effective ~4% with prompt-payment subvention)
+Lowest non-agri retail rate via JLSTF at RLLR - 0.35% = 7.75% p.a.
+Swarna Lakshmi — exclusive concessional 8.80% rate for women borrowers
+SME Gold at 8.75% with NIL processing fee, up to ₹50 Lakh for businesses
+IOB Gold Loan Card — a gold-backed overdraft usable at ATM (40%), POS (100%) & E-commerce (100%), up to ₹25 Lakh
+RBI-compliant, transparent valuation using IBJA's 30-day average price + XRF Karatmeters at select branches
+Nil processing fee on all agricultural & MSME schemes; nil documentation charges
+No foreclosure / prepayment charges on any jewel loan scheme; express speed of sanction

!Things to Consider

–The headline-beating 7% rate applies ONLY to the KCC Jewel Loan (agri, with interest subvention) — standard retail is 8.90% p.a.
–LTV is scheme-dependent and not a single published figure per scheme — only the RBI 75% overall cap is guaranteed
–Application is primarily branch-driven; no fully digital end-to-end disbursal
–Gold Loan Card cash withdrawal is limited (₹20K per transaction, ₹1L per day, 40% of limit)
–RLLR/MCLR-linked rates move with RBI policy changes; the effective rate may rise
–Penal charge of 2% applies on overdue amounts and on outstanding above the DP/limit

❓ Frequently Asked Questions

Indian Overseas Bank's jewel loan interest rates are RLLR / MCLR-linked (RLLR 8.10% w.e.f. 15 Dec 2025; MCLR 8.80% w.e.f. 15 Jun 2026). The cheapest is the KCC Jewel Loan at 7% p.a. (effective ~4% with the 3% prompt-payment interest subvention). Other key rates: JLSTF 7.75%, SME Gold 8.75%, Swarna Lakshmi (women) 8.80%, and standard retail (JL-Others / Gold Loan Card / Suvidha) 8.90% p.a. Agricultural schemes (Agri Easy, Swarna Samridhi) are MCLR-linked at ≈8.85%. Rates are indicative — verify the latest on IOB's official website before applying.

🔗 Keep Exploring

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Gold Loan LTV Calculator Gold Loan Interest Rates Gold Jewellery Calculator EMI Calculator

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Gold Loan vs Personal Loan Gold Loan Hub All Banks Gold Hub

📅 Last reviewed: 2026-07-30 · Next review: 29 Aug 2026 · Data source: Indian Overseas Bank official website · Indicative rates only — always verify current terms with IOB before applying. Gold loan LTV capped at 75% per RBI guidelines.