Canara Bank Gold Loan

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Canara Bank Gold Loan Details Updated on
Loan Amount Rs. 5,000 to Rs. 20 lakhs
Interest Rate 7.65% onward
Tenure Up to 2 years

Canara Bank Gold Loan helps you fund your personal expenses, contingencies, and other purposes. You can take the Swarna Loan against gold jewellery or bank-sold minted gold coins. The maximum loan amount is Rs. 20 lakhs. The bank offers quick approval to eligible candidates. There is no need for any guarantee or co-obligation. The other two schemes are Swarna Overdraft and Swarna Express. Repayment is flexible. You can choose between bullet payments and avail yourself of flexibility in repayments.

In this post, we will discuss Canara Bank Gold Loan features, eligibility criteria, interest rate, documents required, repayment module, processing fees, and frequently asked questions.

Features of Canara Bank Gold Loan

Here are the features:

  • The loan amount is between Rs. 5,000 and Rs. 20 lakhs.
  • You can use the funds for emergencies, domestic purposes, unforeseen expenses, investments, and more.
  • You can avail of an Overdraft Scheme, Term Loan, and Instant Loan.
  • Tenure is up to 2 years, depending on the category of the jewel loan scheme.
  • The rate of interest starts at 7.65% for Swarna Loan.
  • Gold purity should be between 18 carats and 22 carats, at the least.

Eligibility Criteria for Canara Bank Gold Loan

Here are the eligibility norms:

  • Credit-worthy savings bank account holders.
  • They must have satisfactory dealings with the bank.
  • If a new customer applies, then an introducer is required.
  • The new customer should also be credit-worthy.

Canara Bank Gold Loan Interest Rate

Here is more information:

  • The Canara Bank Gold Loan Interest Rate is based on Repo Linked Lending Rate (RLLR).
  • The current RLLR is 6.90%. The risk spread is 0.75%.
  • The effective rate is therefore 7.65%.
  • The actual applicable rate depends on pledged gold weight and purity, along with LTV (loan to value ratio).
  • It is also influenced by the requested loan amount, tenure, and other factors.

Documents to Apply for Canara Bank Gold Loan

Here are the required documents:

  • Duly filled and signed application form.
  • Income proof/Salary Certificate/Form No. 16
  • Bank will arrange the Valuation Certificate by the Jewel Appraiser

Repayment for Swarna Loan Canara Bank

Here is information about repayment:

  • The tenure is up to 12 months for Swarna Loan from the sanction date as bullet repayment with interest.
  • The interest is accumulated on the account monthly. It is compounded but payable with the principal at the time of maturity.
  • For Swarna Overdraft, the tenure is up to 2 years.
  • For Swarna Express, bullet payment applies. The tenure is up to 6 months.

Processing Charges Canara Bank Swarna Loan

Here are the details:

  • For Swarna Loan: 0.50% of the loan amount. The maximum fee is Rs. 5,000. The minimum fee is Rs. 500.
  • For Swarna Express: 50% discount on charges for Swarna Loan.
  • For Swarna Overdraft: 0.50% of the loan amount. The minimum and maximum charges are Rs. 500 and Rs. 5,000, respectively.

Apply for Gold Loan

Frequently Asked Questions about Canara Bank Jewel Loan

Here are the FAQs:

The lowest monthly instalment for Gold Loan Canara Bank is Rs. 8,683. For this, the account tenure is 12 months and the rate is 7.65%.

The bank does not offer special jewel loans for agriculture. If you need funds for farming, then you may apply for the regular Swarna Loan.

Yes, it is possible to apply for the jewel loan at the official website of Canara Bank. Or, you can also visit the nearest branch and submit the loan application form with attached documents.

The LTV or Loan to Value Ratio is the margin amount that is available for borrowing depending on the asset’s market value. For Swarna Loan, the applicable LTV is 75% of the gold’s market value. However, in the Covid pandemic time, the bank may even offer a loan to value ratio of up to 85% to 90%.

The bank offers a higher per gram rate for gold of higher purity. For instance, a 22-carat gold asset will carry a higher value (per gram rate) as compared to an 18-carat gold asset. So, if you pledge jewellery of higher purity, then the loan amount sanctioned is also higher, and vice-versa.

Disclaimer : Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of Canara Bank for gold loans.