- Is Canara Bank the right choice for a Gold Loan?
- You can decide only after you know its interest rates, likely repayment, etc, read this to know the same!
An individual can face a need for urgent funds at any point in his/her life. There are so many options provided by the top banks and financial institutions in the current times that he or she can choose to meet the requirements. One such option is to get the required loan amount by pledging your gold, sitting idle at your home, to the lender. And Canara Bank Gold Loan, also known as the Swarna Loan, provides you this amazing option to fulfill all your needs at affordable interest rates.
Canara Bank Gold Loan could be the most suitable option for you if you are looking to get funds in a hassle-free way. You can get a maximum loan of upto INR 20 lakhs. This amount can help you in achieving all your needs such as your vehicle’s downpayment, child’s education or some medical emergency. So, if you are facing any need for urgent funds and want to know more about this loan, keep reading!
Canara Bank Gold Loan Interest Rate February 2024
Choosing the affordable interest rate for you while availing any kind of loan could be the most crucial thing for you. To opt for a Canara Bank Gold Loan, you only need to submit your gold ornaments or bank-minted gold coins to the lender against which you will get the required loan amount. Since you are submitting security against the loan amount, interest rates tend to be on the lower side as lenders face less credit risk. Due to lower interest rates, it will result in lower repayment amounts.
Canara Bank Gold Loan interest rates, which are linked to the Repo Rate set by the Reserve Bank of India (RBI), range from 9.10% to 9.20% per annum. The final rate of interest will be decided upon the loan amount taken by you. The interest rate for individuals who opt for the loan amount below INR 5 lakh will be 9.10% per annum. Similarly, for those opting for above INR 5 lakh, the interest rates would be 9.20% per annum. If you want to know more about the other factors about the Canara Bank Gold Loan, you can check the table below.
Canara Bank Gold Loan Interest Rate and Other Details
|Minimum Loan Amount
|Maximum Loan Amount
|INR 20 lakh
|Maximum of 12 months
|1% of the total loan amount plus applicable GST charges
Min of INR 1,000 with a maximum of INR 5,000
Canara Bank Gold Loan Highlights
Now that you have some useful information about the Canara Bank Gold Loan interest rate and other important aspects, it’s time to know about the features of it which makes it one of the most preferred financial products. This will only help you make the best decision according to your requirements and repayment capacity.
You can look at the loan highlights below.
- A Canara Bank Gold Loan or Swarna Loan can be taken by any individual who has a savings bank (SB) account with Canara Bank and has a satisfactory transaction history. If a person doesn’t have an SB account with Canara Bank and wants to apply for a Swarna Loan, he or she can open an account fulfilling all the requirements of the Canara Bank and apply for a loan thereafter.
- As we told in the table above that you can get a loan amount of INR 10,000 to a maximum of INR 20 lakh. But this amount will depend on the overall value of gold. The maximum loan amount that you can get is 85% of your gold value.
- The applicant also has to maintain a loan-to-value (LTV) ratio of 75% throughout the tenure of the loan. If any point of your loan tenure exceeds this limit, you have to pay the excess amount to the bank.
- You can get the loan amount against your gold ornaments of 22 karats and gold coins minted by the banks.
- Your credit score will also play a huge role in determining your candidature while applying for the Canara Bank gold loan.
How can You Apply for Canara Bank Gold Loan?
Now you must be thinking about the method by which you can apply for the Canara Bank Gold Loan as you have enough information about the features, interest rates and other important details related to it. Anyone who has gold and has a savings bank account with Canara Bank can easily apply for the Swara Loan. There are mainly two methods by which you can apply — Offline and Online Method
We have given details about both of these methods below. Do check them!
To apply for the Canara Bank Gold Loan via the offline method, you just need to follow a few simple steps. We have mentioned these steps below.
- First of all, find the nearest Canara Bank branch that provides Gold Loan as you cannot get a gold loan from any branches. Canara Bank has a few designated branches for this special facility.
- You just need to visit there with your gold ornaments or gold coins and required documents. The representatives will tell you about the scheme in detail.
- The bank will assess your documents, eligibility, and the value of your gold. According to that, your gold loan amount will be decided and disbursed instantly.
In an age where everything can be done from your phone or laptop, Canara Bank Gold Loan can also be applied online in a few minutes. You need to follow the below-mentioned steps that are easy to understand.
- Go to the official website of the Canara Bank. There, you will see the Gold Loan Section.
- On reaching there, you will see the button mentioning the Facility of On-line application.
- As soon as you click on that, a form will appear in front of you. You will need to fill a few basic details such as your name, mobile number, email id, and residing city. Your application will be on its way as soon as you submit it.
- The representatives from the Canara Bank will contact you soon regarding your loan application.
Documents Required for Canara Bank Gold Loan
As you have noticed in the application method, you will need a set of documents. Documentation is the most important part of any loan facility. Each lender demands a fixed set of documents that you need to submit while applying for the gold loan. Through your documents, a lender checks the authenticity and also the repayment capacity. You can have a look at the set of documents below that you will need.
- Two Recent Passport Size Photographs
- Duly Filled Swarna Loan Application
- Certificate by the Jewel Appraiser which will be arranged by the Bank
- Salary Certificate and Form Number 16 or the Income Proof
- KYC Documents – Aadhar Card/ PAN Card/ Passport/ Driving Licence
Eligibility Criteria for Canara Bank Gold Loan
To apply for any loan facility, you should be eligible for the gold loan first. Canara Bank places a few conditions for you to meet before applying for the Gold Loan. Check out the conditions below.
- Applicants must have a savings bank account with the Canara Bank.
- The applicant must be an Indian Citizen.
- The credit score of the applicant must be good to get the Swarna Loan according to the criteria fixed by Canara Bank.
How to Repay the Canara Bank Gold Loan?
Repayment is an important part of the Gold Loan. With the Canara Bank Gold Loan, you will have to repay the loan amount within 12 months using the Bullet Repayment Method. Through this method, you can pay the total principal and interest amount at the end of tenure only. The interest will be calculated monthly and will be added to the principal amount. You can choose the tenure according to your repayment capacity as you will have to pay the total amount at the end of tenure.
How to Contact Canara Bank Customer Care?
At any point of time, if you have any query regarding the Canara Bank Gold Loan, you can get in touch with the Canara Bank customer care by calling 1800-425-0018 from your mobile number. This is a toll-free number. The representatives will hear all your queries patiently and resolve it as soon as possible.