May 21, 2024

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Canara Bank Gold Loan: A Simple Guide

Bank Gold Loan

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Canara Bank offers multiple categories of products and services to all its existing and new customers, one of which is the Canara Bank Gold Loan. The bank offers three gold loan schemes, namely Swarna Loan, Swarna Express, and Swarna Overdraft. The borrowers can avail of any one of them at a competitive rate of interest along with other benefits. As a gold loan is a secured form of loan, it can be availed at a low rate of interest compared to an unsecured loan, like a personal loan. It allows borrowers to avail of a loan of a sum equal to 90% of the cost of the gold items.

The loan can be used against gold ornaments, jewellery, and specially minted coins sold by Canara Bank for up to 50 gm per customer. Borrowers can also make easy repayments through the Interest Payment Method or the Bullet Repayment Method.

Canara Bank Gold Loan – A Snapshot
Interest Rate Floating rates- 9.25% p.a.

Fixed rates- 10.35% p.a.

Loan Amount INR 5,000- INR 35 lakh
LTV Ratio Up to 70% of gold’s market value
Tenure Up to 2 years
Collateral/Security
  • Gold ornaments
  • Jewellery
  • Specially minted gold coins, i.e. gold struck into the shape of a coin or medal, sold by banks of up to 50 gm per customer.
Processing Fee Up to 0.50% of the loan amount, i.e. maximum INR 5,000

Features of Canara Bank Gold Loan Scheme

Mentioned below are the features of the Canara Bank Gold Loan Scheme:

  • Get a competitive rate of interest, making borrowing more feasible financially.
  • Get a gold loan with less documentation, making the process easy and hassle-free to apply for.
  • It may be used to entertain genuine and urgent financial requirements under limited restrictions.
  • Get loans ranging between INR 5000 and INR 35 lakhs under this process.
  • Get loans with small processing fees.
  • Get flexible repayment with interest due at the time of maturity.
  • Get a simplified application process without a guarantor.
  • Only the gold ornaments are eligible for the loan.
  • The maximum tenure for the gold loan is 10 years.
  • The gold loan can be availed of within a maximum of 30 minutes once approved.

Types of Canara Bank Gold Loans

Mentioned below are the different types of Canara Bank Gold Loans:

Canara Bank Swarna Loan: 

Purpose of Loan: To meet the medical expenses or any other unforeseen contingencies.

Loan Amount: INR 5,000- INR 35 lakh

LTV Ratio: Up to 65% of the appraised value of gold

Tenure: Up to 1 year

Repayment Option: Bullet repayment method

Canara Bank Swarna Express:

Purpose of Loan: To meet any medical expenses or any other unforeseen commitments and contingencies.

Loan Amount: INR 5,000- INR 35 lakh

LTV Ratio: Up to 70% of appraised value of gold

Tenure: Up to 6 months

Repayment Option: Bullet Repayment Method

Canara Bank Swarna Overdraft:

Purpose of Loan: Get an overdraft facility to cover medical expenses or any other unforeseen contingencies.

Loan Amount: INR 50,000- INR 35 lakh

LTV Ratio: It is up to 70% of the appraised value of gold

Tenure: Up to 6 months

Repayment Option: Interest payment method

Canara MSME Gold Demand Loan:

Purpose of Loan: To meet the business requirements of the applicants, like providing financial assistance to MSME units for fund-based requirements of general businesses. It also helps acquire machinery, equipment, or tools for repair and renovation and raises working capital.

Loan Amount: INR 50,000- INR 35 lakh

LTV Ratio: Up to 65% of the appraised value of gold

Tenure: Up to 1 year

Repayment Option: Interest payment method

Canara MSME Gold Overdraft:

Purpose of Loan: It helps to provide financial assistance to MSME units for funds-based requirements. It provides help for general business purposes, i.e., increasing working capital, purchasing machinery, tools, equipment, etc.

Loan Amount: INR 50,000- INR 35 lakh

LTV Ratio: Up to 70% of appraised value of gold

Tenure: Up to 1 year

Repayment Option: Interest payment method

Steps to Apply for Canara Bank Gold Loan

Mentioned below are the easy steps to apply for Canara Bank Gold Loan:

Step 1: Visit any nearest branch of Canara Bank.

Step 2: The bank representative will provide you with a Gold Loan Application Form.

Step 3: Fill out the Gold Loan Application Form.

Step 4: Submit it along with the required documents.

Step 5: The bank representative will then process the loan application.

Service Charges on Gold Loan Schemes

Processing Charges for Canara MSME Gold Loan Schemes and all Agricultural Gold Loan Schemes: 

Loan Quantum  Consolidated Processing Charges 
Up to INR 0.25 Lakh NIL
Above INR 0.25 lakh to Up to INR 1 Lakh INR 250.00
Above INR 1 Lakh Up to INR 3 Lakh INR 500.00
Above INR 3 Lakh Up to INR 5 Lakh INR 1100.00
Above INR 5 Lakh Up to INR 10 Lakh INR 1450.00
Above INR 10 Lakh INR 2750.00

Processing Charges for Swarna Loan Schemes: 

Swarna loan 0.50% of the Loan amount with a minimum of INR 500.00 and a maximum of INR 5000.00
Swarna Overdraft
Swarna – Express 50% of Charges applicable to Swarna Loans

Safe-Keeping Charges for all Gold Loan Schemes: 

Loan Quantum  Safe Keeping Charges after 30 days of expiry/ closure of loan 
Up to INR 5.00 Lakh INR 200 per month or part thereof
Above INR 5.00 Lakh INR 200 per month  or part thereof

Documentation Required

Mentioned below is the list of documents required to apply for Canara Bank Gold Loan:

  • Duly filled application form with photographs
  • Latest Salary Slips, Bank Statements, etc.
  • Address Proof like Aadhar card, Voter ID, Driving License
  • Jewel appraiser’s statement
  • ID Proof like a Driving License, Aadhar card, Voter ID card
  • Income Proof like Form 16 or a Salary Certificate

Eligibility Criteria

Mentioned below are the eligibility parameters to be met in order to apply for Canara Bank Gold Loan:

  • An applicant should be an Indian citizen.
  • An applicant should have a good credit score.
  • The minimum age of an applicant should be 18 years.
  • The purity and weight of the gold ornaments pledged as security will also be considered.

Canara Bank Gold Loan Interest Rates

Mentioned below are the Canara Bank Gold Loan Interest Rate:

Floating Interest Rates

Products Interest Rate (p.a.)
Swarna Loan 9.25%
Swarna Overdraft 9.25%
Swarna Express 9.25%

Fixed Interest Rates

Products Interest Rate (p.a.)
Swarna Loan 10.35%
Swarna Overdraft 10.35%
Swarna Express 10.35%