IOB Gold Loan Interest Rate: Jewel Loan Rates by Scheme

The IOB gold loan interest rate is 8.90% a year for Indian Overseas Bank’s general jewel loan and gold loan card, and 8.80% for its Swarna Lakshmi loan for women, as of 17 September 2026. Farmers can pay 7% under the KCC jewel loan with interest subvention. IOB links most of these rates to its repo-linked lending rate (RLLR) of 8.10%.

Key facts

IOB gold loan interest rate by scheme

IOB’s advance rate page, last updated on 31 August 2026, prices each jewel loan scheme as a spread over the RLLR or the MCLR. The rates below apply those spreads to the current benchmarks.

MCLR-based figures use the MCLR of 15 August 2026 (one-year 8.85%, six-month 8.70%). IOB’s scheme page, updated on 10 August, still quotes an older MCLR of 8.80%, so ask the branch for the rate on your sanction letter. Interest is charged on daily balances with monthly rests. RLLR-linked rates move when RBI changes the repo rate; the next decision is due at the 5–7 October 2026 meeting.

Repayment period for each IOB jewel loan

IOB gold loan per gram today

IOB values pledged gold at the 30-day average closing price for its purity published by the India Bullion and Jewellers Association (IBJA). RBI’s gold lending directions require the lower of that average and the previous day’s close.

IBJA’s closing rate for 22 carat (916) gold on 16 September 2026 was ₹1,39,564 per 10 grams, or ₹13,956 a gram. That was below the 30-day average of about ₹14,240, so ₹13,956 is the value to use. See the gold rate today page for the latest IBJA fix.

RBI caps the loan at 85% of gold value up to ₹2.5 lakh, 80% from ₹2.5 lakh to ₹5 lakh, and 75% above ₹5 lakh. IOB’s page states 75% for Suvidha and the MSME cash credit; margins on other schemes are set by the bank within RBI’s limits. Stones, wax and other material are removed before weighing. For bullet loans, the interest due at maturity counts towards the limit, so a 10-gram bullet loan at 8.90% for 12 months would be about ₹95,800 at a 75% ratio.

IOB gold loan calculator: sample EMIs

These figures use the reducing-balance EMI formula at 8.90%. The EMI calculator works for any other amount.

How to apply for an IOB jewel loan

1. Take your ornaments or bank-minted coins to an IOB branch with an ID and address proof. New customers open an account first.
2. The bank’s empanelled appraiser checks hallmarks and purity, using touchstone, acid or XRF tests.
3. Choose the scheme and repayment option; the branch works out the limit from the net gold weight.
4. Sign the loan documents and collect copies, which the bank must give you at sanction.
5. Pay interest or EMIs on the dates in your sanction letter; bullet loans are repaid in one amount at maturity.
6. On full repayment, collect your jewellery the same day; IOB’s terms allow at most seven working days.

If a loan turns overdue or breaches the LTV limit, IOB sends notices, advertises in two newspapers 30 days before an auction, and refunds any surplus within seven working days. For the full set of RBI rules, read our guide to gold loan LTV, limits and tenure, and compare other banks on the gold loan rate per gram today page.

Frequently asked questions

What is the Indian Overseas Bank gold loan interest rate?

8.90% a year for JL-Others, the gold loan card and Jewel Loan Suvidha, 8.80% for Swarna Lakshmi and 8.75% for MSME jewel loans, as of 17 September 2026. KCC jewel loans can be 7%.

What is the IOB jewel loan rate for farmers?

KCC jewel loans up to ₹3 lakh carry 7% with interest subvention. Agri Easy is one-year MCLR plus 0.05%, and Swarna Agri Gold Loan is RLLR plus 0.75%, about 8.85% to 8.90%.

What is the IOB gold loan rate per gram today?

Using IBJA’s 16 September 2026 close of ₹13,956 a gram for 22 carat gold, a 75% ratio gives about ₹10,467 a gram. RBI’s 85% ceiling for small loans would give ₹11,863.

Does IOB charge for closing a gold loan early?

No. IOB says it levies no foreclosure or prepayment charges on any jewel loan scheme.

Can I get an IOB gold loan on gold coins?

Yes, on specially minted pure gold coins sold by banks, up to a total of 50 grams per customer.

What are IOB’s current loan interest rates?

IOB’s RLLR is 8.10% and its one-year MCLR is 8.85%. Each loan product adds its own spread to one of these.

Sources

• Advance rate for jewel loan — Indian Overseas Bank (checked 17 Sep 2026)
• Jewel loan schemes, valuation method and general terms — Indian Overseas Bank (checked 17 Sep 2026)
• Lending interest rates — Indian Overseas Bank (checked 17 Sep 2026)
• Lending rates and MCLR — Indian Overseas Bank (checked 17 Sep 2026)
• Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 — Reserve Bank of India (checked 17 Sep 2026)
• Monetary Policy Statement, August 2026 — Reserve Bank of India (checked 17 Sep 2026)
• Daily gold rates — India Bullion and Jewellers Association (checked 17 Sep 2026)