Canara Bank Gold Loan Scheme

Unlock the value of your gold with Canara Bank Gold Loan

✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation Apply Now

Canara Bank is an Indian public sector bank that is under the control and ownership of the Ministry of Finance, Government of India. Established in 1906, it is one of India’s oldest and most trusted banking institutions.

Canara Bank offers a number of loan products, including gold loans to meet short-term as well as long-term liquidity requirements. Here’s everything you need to know about Canara Bank gold loans.

Key Highlights of Canara Bank Gold Loan

Key Highlights of Canara Bank Gold Loan
Nature of Credit	Overdraft (OD) Single Transaction Limit (STL)
Maximum/Minimum Loan Amount	Minimum Loan Amount - ₹5,000 Maximum Loan Amount - ₹35 Lakhs
Repayment	Bullet payments, interests are compounded monthly.
Maximum Tenure	2 Years
Prepayment Penalty	Nil
Schemes Offered	Swarna Loan Swarna Overdraft Swarna Express

Features and Benefits of Canara Bank Gold Loan

Here are the features and benefits of a Canara Bank gold loan

Range of Loan Amounts

The Canara Bank gold loan offers amounts ranging from ₹5,000 to ₹35 Lakhs.

Nature of Gold Loans

Canara Bank offers both overdraft (OD)and single transaction limit (STL) gold loans.

No Prepayment Penalties

You will not be charged any pre closure or prepayment charges if you choose to pay your loan in advance.

Flexible Tenure

You can choose a tenure of up to 6 months for the Swarna Express while the repayment tenure for the Swarna Loan is 12 months. With the Swarna Overdraft scheme, you have a repayment tenure of up to 2 years.

Simple Procedure

You do not need a guarantor or income proof to process your Canara Bank gold loan application. Additionally, credit score does not affect your borrowing potential.

Easy Repayments

You can make easy bullet repayments, while the interest is compounded monthly. Additionally, you can choose to make your repayments online or offline.

Safe and Secure Option

A Canara Bank gold loan is one of the safest gold loans available in the market as your pledged gold jewellery is stored in a safe and well-maintained locker.

Minimal Paperwork

The Canara Bank gold loan requires only a few documents such as your income and address proof. Additionally, Canara Bank gold loans take very little time to be processed.

Types of Canara Bank Gold Loan Schemes

Canara Bank offers three types of gold loans. Here’s everything you need to know about these schemes:

Swarna Loan

Swarna Loan
Loan Type	Single Transaction Limit
Minimum Loan Amount	₹10,000
Maximum Loan Amount	₹10 Lakhs
Eligibility	Anyone with an SB account and complying with all requirements.
Rate of Advance	85% of the rate of advance, per gram sovereign touch gold (22 Karat gold)
Rate of Interest	Floating rate of interest, linked to base rate
Repayment Conditions	Bullet payment, along with interest at maturity within a 12 month tenure.
Charges	Processing charges of 1% of the total loan amount. With a lower cap of ₹1000 and an upper cap of ₹5000. Any jewellery appraisal charges will have to be borne by the borrower.

Swarna Express

Swarna Express
Loan Type	Single Transaction Limit
Minimum Loan Amount	₹10,000
Maximum Loan Amount	₹10 Lakhs
Eligibility	Anyone with an SB account and complying with all requirements.
Rate of Advance	85% of the rate of advance, per gram sovereign touch gold (22 Karat gold).
Rate of Interest	Floating rate of interest, linked to base rate.
Repayment Conditions	Bullet payment, along with interest at maturity within a 6 month tenure.
Charges	Processing charges of 1% of the total loan amount. With a lower cap of ₹1000 and an upper cap of ₹5000. Any jewellery appraisal charges will have to be borne by the borrower.

Swarna Overdraft

Swarna Overdraft
Loan Type	Overdraft
Minimum Loan Amount	₹10,000
Maximum Loan Amount	₹10 Lakhs
Eligibility	Anyone with an SB account and complying with all requirements.
Rate of Advance	85% of the rate of advance, per gram sovereign touch gold (22 Karat gold)
Rate of Interest	Floating rate of interest, linked to base rate
Repayment Conditions	Bullet payment, along with interest (compounded monthly) at maturity within up to 2 year tenure.
Charges	Processing charges of 1% of the total loan amount. With a lower cap of ₹1000 and an upper cap of ₹5000. Any jewellery appraisal charges will have to be borne by the borrower.

Canara Bank Gold Loan Interest Rates

Here are the Canara Bank gold loan interest rates for the Swarna Loan, Swarna Overdraft and Swarna Express schemes.

Loan Product	RLLR	Credit Risk Premium over RLLR	Effective Rate of Interest under RLLR
Swarna Loan	9.15%	0.35	9.50%
Swarna Overdraft	9.15%	0.35	9.50%
Swarna Express	9.15%	0.35	9.50%

Disclaimer: these rates are subject to change at the discretion of Canara Bank.

Canara Bank Gold Loan Fees Charges

When you avail a gold loan from Canara Bank, there are certain fees and charges that will be applicable. These charges include processing fees, which is about 1% of the total loan amount. These processing charges will have a lower cap of ₹1000 and an upper cap of ₹5000. Any jewellery appraisal charges will have to be borne by the borrower.

Canara Bank Gold Loan EMI Calculator

An EMI calculator is an effective tool to use when you’re trying to plan your finances. You can use it to understand how much borrowing you can make with the gold that you have. You can also understand your EMIs and interest amount. Making use of a Canara Bank gold loan EMI calculator can help you plan your finances efficiently while also helping you get a better understanding of your financial obligations.

Canara Bank Gold Loan Eligibility Criteria & Documentation

1. Eligibility Criteria

Here’s the eligibility criteria for Canara Bank gold loan:

Applicant must be a citizen of India.
Applicant must be the true owner of gold jewellery, ornaments and/or specially minted gold coins.

Applicant must be KYC-compliant.

2. Documents Required

Here are the documents required to apply for a Canara Bank gold loan:

Identity Proof - You can submit government issued documents such as passport, PAN card, driving licence, voter ID, or Aadhaar card.
Address Proof - You may submit government issued documents like recent utility bills, passport, ration card, or Aadhaar card.

How to Apply for Canara Bank Gold Loan

You may apply for the Canara Bank gold loan by visiting your nearest designated gold loan branch and speaking to a representative.

How to Repay Canara Bank Gold Loan

You can choose to repay your gold loan EMI or lump sum payments online or offline, depending on your convenience. Here are the repayment conditions for specific gold loan schemes.

Swarna (Single Transaction Limit): The entirety of the amount borrowed must be repaid within a period of 12 months as a bullet payment. This repayment will also include the interest payments. Interest will be compounded monthly, but will be payable only at the end of the maturity period along with the principal amount.
Swarna Express (Single Transaction Limit): The total loan amount, including interest must be repaid within a period of 6 months as a bullet payment. The interest amount will be compounded monthly, but will be payable at maturity.
Overdraft: The maximum repayment tenure is 2 years, please note that this applicable tenure is subject to annual review. The interest will be serviced monthly.

Canara Bank Gold Loan Interest Rate Comparison

Here are the gold loan interest rates of some of India’s leading gold loan providers. You may use this table to compare and contrast existing gold loan interest rates and choose a provider that suits you the best.

Bank/NBFC	Rate of Interest
Canara Bank	9.50% onwards
Bank of Baroda	8.85% onwards
Bajaj Finserv	9.5% - 28%
SBI Gold Loan	8.00% - 8.70%
HDFC Bank	7.60% - 17.05%
ICICI Bank	10% - 17.95%
Union Bank of India	7.90% - 10.05%
Indian Bank	9% - 10.15%
Axis Bank	17% - 19%
Kotak Bank	8% - 17%

*These interest rates are subject to change at the discretion of the loan providers.

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