Canara Bank Gold Loan Interest Rates

On the gold loan it extends to you, Canara Bank will levy interest. Due to the fact that a gold loan is secured, its interest rate is significantly lower than that of an unsecured loan, such as a personal loan.

Additionally, you are eligible for a loan sum equal to up to 90% of the cost of the gold items. Swarna Loan, another name for the Canara Bank gold loan, includes two types: Swarna Overdraft and Swarna Express.

Details of the Canara Bank Gold Loan Scheme

Canara Bank gold loan interest rate

7.25%

Amount of Loan

Rs. 35,00,000

Tenure for the Loan

2 Years

Processing Charges

0.5% + GST

Characteristics of the Canara Bank Gold Loan Scheme

  • Help Right Away:  Canara Bank has reduced the amount of documentation required for this loan, making it hassle-free and simple to apply for.
  • Swarna Loan offers competitive interest rates, which make borrowing more financially feasible.
  • Multipurpose: Under limited restrictions, this loan may be used to address any genuine financial need.
  • High loan amount: Under this scheme, loans in the range of Rs. 5,000 and Rs. 35 lakh can be obtained.
  • Low processing fee: Canara Bank only charges a small processing fee for this loan.
  • Flexible repayment: The interest is only due at maturity, and borrowers have a year to pay back the loan.
  • Guarantee: The lack of a guarantor for this loan simplifies the application process.

Canara Bank Gold Loan Interest Rate 2022

Canara Bank jewel loan interest rate

7.25% and above

Gold Interest Rate in Canara Bank and Other Banks - A Comparison

Bank

Interest Rate

Canara Bank

7.65% onwards

Axis Bank

12.50% onwards

ICICI Bank

11.00% onwards

Muthoot Fincorp

11.99% onwards

HDFC Bank

9.90% onwards

PNB

8.75% onwards

SBI Bank

7.50% onwards

Who is Eligible for the Canara Bank Gold Loan Scheme?

Existing candidates who hold a Savings Account with Canara Bank are eligible for a gold loan. When applying for a loan, new customers must be able to demonstrate their creditworthiness. The applicant also needs to be an Indian who is at least 18 years old and has a reliable source of income.

What are the Documents Needed for the Canara Bank Gold Loan Scheme?

Canara Bank demands the following paperwork:

  • Request for a Loan.
  • KYC documentation to prove income (Latest salary slip, Form 16, bank statement).
  • Statement from the jewel appraiser. The bank will set up the appraiser.

How to Apply for the Canara Bank Gold Loan?

You can apply for a Canara Bank gold loan by going to any one of its branches. Once there, get in touch with a branch representative who will help you through the procedure, which involves having a bank-approved appraiser evaluate your gold items.

Following that, Canara Bank will inform you of the maximum loan amount that can be requested based on the rate for Canara Bank gold loans per gram.

You can anticipate a prompt disbursement of the loan amount after your application has been approved.

How to Repay the Canara Bank Gold Loan?

An essential component of the Gold Loan is repayment. You must use the Bullet Repayment Method to pay back the Canara Bank Gold Loan in full within 12 months. You can only pay the entire principal and interest sum using this method at the end of the term. The principal amount will be increased by the interest, which will be computed on a monthly basis.

As you will be required to pay the entire sum at the end of the tenure, you can select the tenure based on your ability to make payments.

Benefits of the Gold Loan Scheme from Canara Bank

  • Instant Gold Loan: The amount of a Canara Bank loan might be anything between Rs. 10,000 and Rs. 1 crore.
  • Gold Ornament: Only ornaments on loan are eligible for the loan.
  • Loan Term: The Canara Gold Loan has a maximum term of 10 years when it comes to taking out a gold loan.
  • Safety and security: Following the determination of the Gold's value, experts pack the Gold in a sealed pouch before placing it securely in the bank's vault. The client is present when the process is being done. By doing this, the bank can guarantee that the borrower's Gold is completely safe and secure.
  • You can get the loan in 30 minutes after approval.
  • In the event of a Gold Loan, Canara Bank may charge the borrower up to 1% of the outstanding principal amount as a foreclosure fee.
  • Existing customers of the bank receive unique offers.
  • Value for Gold: The bank will make a qualified appraiser available to assess the purity of your Gold.

Processing Charges of the Canara Bank Gold Loan Scheme

  1. 0.50% of the loan amount for the Swarna Loan. The highest cost is Rs. 5,000. The minimal cost is 500 rupees.
  2. Charges for Swarna Loan are discounted by 50% for Swarna Express.
  3. 0.5% of the loan sum is required for the Swarna Overdraft. There are minimum and maximum fees of 500 and 5,000 rupees, respectively.
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