Indian Overseas Bank Gold Loan Interest Rates, Eligibility, Documents, FAQs

Gold has always been considered a valuable asset, and during times of financial need, individuals often turn to gold loans as a reliable option for securing immediate funds. Indian Overseas Bank (IOB) is a trusted financial institution in India that offers gold loans to individuals in need. This blog post will address frequently asked questions regarding IOB's gold loan interest rates. So, let's dive in!

Indian Overseas Bank Gold Loan Interest Rates

Indian Overseas Bank Gold Loan Interest Rate

IOB Gold Loan Interest Rate7.05%
AmountsRs. 25 lakhs
Tenures3 Years

Indian Overseas Bank Gold Loan FAQs

1. What is the interest rate charged by Indian Overseas Bank for gold loans?

IOB offers gold loans at competitive interest rates that are subject to change occasionally. The interest rates are influenced by various factors such as the loan amount, loan tenure, prevailing market conditions, and the bank's internal policies. Check with your nearest IOB branch or visit their official website for the latest interest rates.

2. Are IOB's gold loan interest rates fixed or floating?

Indian Overseas Bank typically offers gold loans with a floating interest rate. The interest rate may vary during the loan tenure based on market fluctuations and other relevant factors. It is crucial to stay updated with the current interest rates and discuss them with bank officials before availing of a gold loan.

3. How is the interest on gold loans calculated?

The interest on gold loans is calculated based on the loan amount, loan tenure, and the applicable interest rate. IOB generally uses the reducing balance method to calculate interest, which is charged on the outstanding loan amount after deducting the principal repayment made. This method helps borrowers save on interest costs by reducing the interest burden over time.

4. Can I negotiate the interest rate with Indian Overseas Bank for a gold loan?

IOB follows a standardized approach when determining interest rates for gold loans. While there might be some flexibility in negotiating interest rates, it ultimately depends on the bank's policies and the borrower's creditworthiness. It is advisable to discuss your requirements and deal with the bank officials to explore the possibility of securing a better interest rate.

5. Can the interest rate on my IOB gold loan change during the loan tenure?

Yes, IOB's gold loan interest rates are subject to change. The interest rate applicable at the time of loan disbursal may not remain constant throughout the loan tenure. Market conditions, regulatory changes, and the bank's internal policies can influence the interest rate. If applicable, IOB will inform borrowers about any changes in the interest rate.

6. Are there any additional charges apart from the interest rate on IOB gold loans?

Apart from the interest rate, IOB may levy certain additional charges such as processing fees, valuation charges, documentation charges, and stamp duty, among others. These charges can vary depending on the loan amount and IOB's internal policies. It is essential to read the loan agreement carefully and understand all the associated charges before availing of a gold loan.


Gold loans offered by Indian Overseas Bank can be a viable solution during financial needs. The interest rates associated with these loans are subject to change and depend on the loan amount, tenure, and market conditions. It is recommended to consult with IOB officials, check their website, or visit the nearest branch to get the most accurate and up-to-date information regarding gold loan interest rates and associated charges. Remember to carefully assess your financial situation and repayment capabilities before availing any loan.

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