Canara Bank gold loan interest starts at 12%. This rate applies for both new and existing customers of the bank. The actual interest rates offered may vary depending on the loan value, loan to value ratio and the gold purity. As a loan against gold is a multi-purpose loan, you can utilize it to fulfil any personal or business need, such as wedding, travel, big-ticket purchase, home renovation, education, business expansion, arrange working capital, etc.
At Loanbaba, will get to know all the details about loan against gold by the Canara Bank.
Here, are the details of Canara Bank gold loan rate and the loan scheme.
Start from 12.00%
1% of the loan value.
May range between Rs. 1000 – Rs. 5000
Tenure of the loan
Rs. 10,000 to Rs. 10 lakhs
Bullet Repayment Scheme
As per 12.00%, the current rate of interest, the lowest EMI for Rs. 1 lakh is Rs. 8,885. You can use the free-of-charge EMI calculator on our website to know the EMI (equated monthly instalment) till end of tenure. The interest rate on jewel loan will differ according to your profile and factors such as your credit score, repayment capacity, purity and weight of pledged gold, relationship with the bank, etc.
Apart from knowing the monthly instalment you have to pay, also check for Canara Bank gold loan eligibility criteria. You can also utilize our free financial tool, eligibility calculator to know if you can get jewel loan from this bank.
The bank has ‘Swarna Loan’ for its customers. Canara bank charges competitive interest rates making the gold loans an attractive option here compared to any other bank. The final rates depend on the base rate. Currently, the base rate applies at 9.65% p.a. Also known as the Swarna Loan scheme, you have to pay 12.00% p.a. or more as per Canara Bank gold loan eligibility norms.
Canara Bank jewel loan interest rate is 12% onwards. Several factors are considered by the bank before determining the rate of interest. These factors include loan amount, tenure, purity and weight of gold. Existing customers of the bank may enjoy a better rate of interest as against new customers.
Below-given are pointers that Canara Bank Gold Loan Interest Rate Calculator takes into consideration.
The quantum of finance depends on the gold weight and purity. The purity of the gold is the most important. Higher the purity, better will the loan amount and the rate of interest.
Canara Bank may offer a lower rate of interest to already existing customers. However, it is not necessary that new customers cannot avail a lower rate. It is best to check with the bank about the interest rate you qualify for the loan.
As you may already know, a lower tenure applies higher interest rates and a longer tenure attracts a lower interest rate. So, enquire about the best tenure for the loan as per your financial position.
You may get a loan amount up to 75% of the gold’s current market rate. The bank can even offer a lower loan to value ratio depending on the type of gold asset and other factors. Lower rates may apply on gold loan with high LTV, and vice-versa.
Below-given are the documents you need to apply for jewellery loan with Canara Bank.
Along with these, you also have to submit a copy of your PAN card and recent passport-sized photographs.
There are three ways of repayments the bank accepts.
NOTE: It is recommended to opt for SI or ECS options to assure faster and less error-prone repayments.
You can apply for the loan online on the official website of the Canara Bank. Fill out the loan application form and submit soft copy of the required documents. In offline method, you can walk-in to the nearest bank branch and speak to a customer executive and know more about the jewel loan scheme and application process to do the needful.
Both in online and offline loan application, you have to get the gold evaluated from the bank. The amount will be disbursed as soon as the loan is approved, as a loan against gold is usually an emergency loan, credited within a day of loan approval.
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Below-given are FAQs on Canara Bank gold loans in India.
You can avail a loan for up to 12 months.
If the loan is not repaid within time, you have to repay the amount with penal interest. Furthermore, repeated defaults will lead to the bank securing the outstanding amount by selling the gold.
Yes, the bank safely keeps your gold in the locker that’s well-maintained and under complete supervision. Thus, you need not stress about the safety of the gold assets.
You can get the loan sanctioned from Canara Bank in just an hour, provided all the documents are ready for submission.
The bank accepts gold that it at least 18 carats.
The applicant does not need a guarantor in order to get a Canara Bank gold loan.
Disclaimer : Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of Canara Bank.
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