Indian Overseas Bank Agriculture Gold Loan

Indian Overseas Bank Agriculture Gold Loan Features and Benefits

The Indian Overseas bank offers agricultural gold loans at an interest rate of 7% per annum. The processing fees could either be 1% of the principal amount or Rs. 1000, whichever seems to be more expensive. An applicant can avail up to Rs. 1 crore provided the individual has submitted the required income proof. There are no prepayment charges charged for the applicant, and the loan tenure of the agricultural gold loan is a maximum of 35 months.

Indian Overseas Bank Agriculture Gold loan calculator 

• Net Weight & The Purity of The Gold Being Pledged: The bank will use its in-house valuer to assess the purity and net weight of gold in your jewellery. Gold used in the jewellery should be of purity of 18 to 24 carats. The bank will also reduce the weight of gems and stones from the jewellery to calculate the net weight of the jewellery. The valuer will give his findings in writing. 
• Price of gold: Once the valuer estimates the purity and net weight of gold in your jewellery, the bank would be asked to multiply it with the price of gold to calculate the value of gold. 
• Loan to Value Ratio: Once the value of jewellery is calculated, Indian Overseas Bank will apply an LTV of up to 75% to calculate your jewel loan amount eligibility. 

Indian Overseas Bank Agriculture Gold Loan Eligibility

There are certain requirements that are required to be fulfilled to avail a agriculture gold loan:

• The applicant should have attained at least 18 years of age
• The individual should have his own gold ornaments or articles that can be pledged
• The gold to be pledged should be 18 carats or above
• The applicant should have a decent CIBIL score

Documents Required for Indian Overseas Bank Agriculture Gold Loan

Indian Overseas Bank Agriculture Gold Loan Rate Per Gram by Gold Purity

The following table gives you an approximate estimation of the gold loan per gram that Indian Overseas Bank offers to the customers for the gold jewellery of different purity levels.

The above table shows the method by which Banks will calculate your per gram gold loan for gold of varying purity.

• Gold loan per gram offer for 22-carat jewelry will be between ₹ 4,620 to ₹ 4,956
• Gold loan per gram offer for 20-carat jewelry will be between ₹ 3,795 to ₹ 4,178
• Gold loan per gram offer for 18-carat jewelry will be between ₹ 3,460 to ₹ 3,784

Indian Overseas Bank Agriculture Gold Loan Interest Rates Per Gram

The table is given below shows the Indian Overseas Bank Gold Loan Rate Per Gram- Updated Jan 16 2025

Historical Gold Loan Rates Per Gram

Indians are known to be one of the largest consumers of gold. This metal has so much value that is constitutes a significant amount of the total imports into the nation. Indians prefer spending their money and buying assets, but they consider buying gold the safest investment.

Major Banks Agriculture Gold Loan Per Gram Rate Comparison

Tips to Get The Highest Agriculture Gold Loan Amount from Indian Overseas Bank

• The Indian Overseas Bank accepts both hallmarked and non-hallmarked jewellery for getting a gold loan. However, you can get the highest gold loan per gram for hallmark jewellery, as it reduces the chances of under-valuation by the valuer. Also, some banks charge a lower processing fee on hallmarked gold jewellery.
• The bank is asked to adjust the price of 22-carat gold for purity of gold. Hence, always try to borrow against higher purity jewellery as it will fetch you the highest amount for a gold loan.
• The Indian Overseas Bank will then calculate the net weight of your jewellery to determine the amount of loan against the gold you can get. Make sure you try to choose jewellery that has minimum gems and stones. Most of the banks will reduce the weight of gems and stones from the total weight of the jewellery. They only take the weight of the gold into consideration and you would get the amount for the loan based on that.
• Always try to get the maximum LTV on the value of gold. The Indian Overseas Bank is allowed by RBI to charge a maximum LTV of up to 75% to calculate the amount of gold loan you are eligible for.

ILLUSTRATION: The loan amount eligibility is decided on the basis of purity of gold, LTV and weight of gold. Suppose Mr A and his two friends Mr B and Mr C own different amounts of gold with varying purity. Mr A has 70 gram of gold with a purity of 18 carats. Mr B has 60 gram of gold with a purity of 20 carats and Mr C has 50 grams of gold with purity or 22 carats. They approach Indian Overseas Bank to avail of a gold loan. The price applied to calculate their gold loan amount eligibility based on a maximum LTV of 75% will vary by the purity of gold and hence, will result in varying gold loan eligibility.