Canara Bank Gold Loan Interest Rates

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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.

Gold Loan

Details

Interest Rates

Start from 12.00%

Processing Fee

1% of the loan value.

May range between Rs. 1000 – Rs. 5000

Tenure of the loan

1 year

Loan value

Rs. 10,000 to Rs. 10 lakhs

Prepayment Fee

NA

Scheme

Bullet Repayment Scheme

Canara Bank Gold Loan Interest Rates 2019 Information

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.

  • You should enquire about repayment schemes provided by Canara Bank. Is it a bullet repayment scheme, EMI method, or lump-sum payment?
  • EMIs will be smaller on a longer tenure, but interest payout will be higher, and vice-versa. So, you may choose a shorter tenure to reduce the interest payments.
  • When choosing tenure of the jewel loan, keep in mind your financial condition and opt for a tenure that will not stress your finances. A longer tenure can be chosen, if it makes it easier for you to manage the EMIs.
  • However, if you can afford to repay sooner, go ahead. Most of the financial institutions do not incur prepayment penalty if you close the loan before its tenure.

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.

Canara Bank Gold Loan

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 Gold Loan Interest Rate Calculator

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.

  • Loan Amount
  • 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.

  • Relationship with the bank
  • 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.

  • Loan Tenure
  • 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.

  • Loan to Value Ratio
  • 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.

Documents Required to Apply for Canara Bank Gold Loan

Below-given are the documents you need to apply for jewellery loan with Canara Bank.

  • Any of the identity proofs mentioned: PAN Card, Passport, Driving License, Aadhar Card, Voter’s ID card, etc.
  • Any of the address proofs mentioned: Aadhar Card, Bank Statement, Rent Agreement, Voter’s ID card, Utility Bills, etc.

Along with these, you also have to submit a copy of your PAN card and recent passport-sized photographs.

How to pay EMIs of your Canara Bank Gold Loan?

There are three ways of repayments the bank accepts.

  • Standing Instruction (SI): This way of repayment is best suited for a person who is already an account holder at Canara Bank. The EMI gets debited automatically in the month end for the cycle per agreement.
  • Electronic Clearing Service (ECS): This is best suited for users who do not have their accounts at Canara Bank. The bank deducts EMIs from their personal bank accounts in the month end for the cycle per the agreement.
  • Post – Dated Cheques (PDCs): In this method, you have to provide post-dated cheques for every EMI. These should not be from a Canara bank account. These cheques can be submitted at any branch of Canara Bank loan centre. However, this method only applies to members from non-ECS locations.
  • NOTE: It is recommended to opt for SI or ECS options to assure faster and less error-prone repayments.

How to Apply for Gold Loan by Canara Bank?

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.

Frequently Asked Questions on Canara Bank Gold Loan Interest Rate and Loan Scheme

Below-given are FAQs about Canara Bank Jewel Loan Interest Rate and the loan plans.

  • addFAQs
    1. What is the tenure for Canara Bank gold loan?
    2. You can avail a loan for up to 12 months.

    3. What if the loan is not repaid within the stipulated time?
    4. 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.

    5. Is it safe to pledge gold with Canara Bank?
    6. 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.

    7. How long does it take to get the gold loan sanctioned?
    8. You can get the loan sanctioned from Canara Bank in just an hour, provided all the documents are ready for submission.

    9. What quality range does the Canara Bank accept for the jewellery loan?
    10. The bank accepts gold that it at least 18 carats.

    11. Do I need a guarantor to avail the Canara Bank gold loan?

    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 for gold loan.

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.

Gold Loan

Details

Interest Rates

Start from 12.00%

Processing Fee

1% of the loan value.

May range between Rs. 1000 – Rs. 5000

Tenure of the loan

1 year

Loan value

Rs. 10,000 to Rs. 10 lakhs

Prepayment Fee

NA

Scheme

Bullet Repayment Scheme

Canara Bank Gold Loan Interest Rates 2019 Information

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.

  • You should enquire about repayment schemes provided by Canara Bank. Is it a bullet repayment scheme, EMI method, or lump-sum payment?
  • EMIs will be smaller on a longer tenure, but interest payout will be higher, and vice-versa. So, you may choose a shorter tenure to reduce the interest payments.
  • When choosing tenure of the jewel loan, keep in mind your financial condition and opt for a tenure that will not stress your finances. A longer tenure can be chosen, if it makes it easier for you to manage the EMIs.
  • However, if you can afford to repay sooner, go ahead. Most of the financial institutions do not incur prepayment penalty if you close the loan before its tenure.

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.

Canara Bank Gold Loan

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 Gold Loan Interest Rate Calculator

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.

  • Loan Amount
  • 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.

  • Relationship with the bank
  • 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.

  • Loan Tenure
  • 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.

  • Loan to Value Ratio
  • 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.

Documents Required to Apply for Canara Bank Gold Loan

Below-given are the documents you need to apply for jewellery loan with Canara Bank.

  • Any of the identity proofs mentioned: PAN Card, Passport, Driving License, Aadhar Card, Voter’s ID card, etc.
  • Any of the address proofs mentioned: Aadhar Card, Bank Statement, Rent Agreement, Voter’s ID card, Utility Bills, etc.

Along with these, you also have to submit a copy of your PAN card and recent passport-sized photographs.

How to pay EMIs of your Canara Bank Gold Loan?

There are three ways of repayments the bank accepts.

  • Standing Instruction (SI): This way of repayment is best suited for a person who is already an account holder at Canara Bank. The EMI gets debited automatically in the month end for the cycle per agreement.
  • Electronic Clearing Service (ECS): This is best suited for users who do not have their accounts at Canara Bank. The bank deducts EMIs from their personal bank accounts in the month end for the cycle per the agreement.
  • Post – Dated Cheques (PDCs): In this method, you have to provide post-dated cheques for every EMI. These should not be from a Canara bank account. These cheques can be submitted at any branch of Canara Bank loan centre. However, this method only applies to members from non-ECS locations.
  • NOTE: It is recommended to opt for SI or ECS options to assure faster and less error-prone repayments.

How to Apply for Gold Loan by Canara Bank?

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.

Frequently Asked Questions on Canara Bank Gold Loan Interest Rate and Loan Scheme

Below-given are FAQs about Canara Bank Jewel Loan Interest Rate and the loan plans.

  • addFAQs
    1. What is the tenure for Canara Bank gold loan?
    2. You can avail a loan for up to 12 months.

    3. What if the loan is not repaid within the stipulated time?
    4. 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.

    5. Is it safe to pledge gold with Canara Bank?
    6. 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.

    7. How long does it take to get the gold loan sanctioned?
    8. You can get the loan sanctioned from Canara Bank in just an hour, provided all the documents are ready for submission.

    9. What quality range does the Canara Bank accept for the jewellery loan?
    10. The bank accepts gold that it at least 18 carats.

    11. Do I need a guarantor to avail the Canara Bank gold loan?

    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 for gold loan.

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