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Canara Bank Gold Loan
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In July 1906, Shri Ammembal Subba Rao Pai established Canara bank at Mangalore, a small port town in Karnataka. Since then, the bank has passed through various phases of its growth trajectory and has become one of the most trusted public-sector banks in the country. Canara bank showed phenomenal growth primarily after becoming nationalized in 1969, attaining the status of a national level player due to its vast geographical reach and discerning clientele. At present, Canara Bank has 5,641 branches and over seven thousand ATMs spread across the nation.

Canara Bank offers customized gold loans to its customers under its “Swarna Gold Loan” scheme, to turn their idle gold into funds to fulfill their needs. The Swarna gold loans from Canara Bank are offered at attractive interest rates. The sanctioned loan amount depends on the current market value of the pledged gold, and cannot exceed a maximum limit of Rs. 10 lakhs. The maximum tenure for Canara Bank gold loans is 12 months.

Canara Bank Gold Loan Features and Benefits

Here are a few advantages and features of Canara Bank gold loans.

  1. Any Canara Bank customer with a steady source of income can avail the loan.

  2. Customers can rest easy regarding the security of their gold, which is kept safe in secure bank vaults.

  3. Competitive rates of interest are offered to fit all types of customer budgets.

  4. All types of gold ornaments, gold coins, and jewelry are accepted as collateral for the loan.

  5. It is a multipurpose loan that can cover several types of expenses.

  6. A maximum loan amount of Rs 10 lakhs and a minimum loan amount of Rs 10,000 can be availed.

  7. A fast and efficient loan disbursal process.

  8. Minimal documentation is required for the loan approval process.

  9. Long loan tenure, of a maximum of 3 months, and 12 months for overdraft.

  10. The facility of choosing a loan tenure as suitable for the customer.

Canara Bank Gold Loan Amounts

Canara Bank offers loans with a limit set between Rs 10,000 and Rs 10 lakhs.

Canara Bank Gold Loan Interest Rates

Canara Bank provides affordable interest rates to its customers. The interest rate is set at 3.3% above the MCLR for one year. The current MCLR of Canara Bank is 8.70%.

Here is a summary of all the information regarding Canara Bank gold loans.

Interest Rate

3.3% above MCLR (MCLR = 8.70%)

Minimum Loan Amount

Rs 10,000

Maximum Loan Amount

Rs 10 lakhs

Maximum Repayment Tenure

12 months

Eligibility Criteria for Canara Bank Gold Loans

Customers need to fulfill the following eligibility criteria set by Canara Bank for its Swarna gold loans.

  1. A minimum age of 21 years and a maximum age of 70 years.

  2. The applicant must be an existing Canara Bank customer.

  3. A steady source of income. 

  4. A good credit score.

Documentation Required for Canara Bank Gold Loans

Loan processing requires the following documents.

  1. Three passport size photographs.

  2. A copy of proof of identity.

  3. A copy of proof of address.

  4. A filled-in application form.

Fees and Charges Associated with Canara Bank Gold Loans

Here is a list of fees associated with Canara Bank gold loans.

Loan Processing Charges

1% of the loan amount

Foreclosure Charges

nil

Valuation Fees

nil

Prepayment or Part-payment Charges

nil

Charges for Late Payment of Loan Amount

nil

Stamp Duty & other Statutory Charges

As applicable by state laws

Documentation Charges

nil

Legal Charges

As actuals

Canara Bank Gold Loan EMI Calculator

Canara Bank customers can employ the Canara Bank gold loan EMI calculator to determine their gold loan EMIs. Applicants can use it to check the tentative amounts that they need to pay as loan EMIs. The EMI calculator depends on the following factors.

  1. Gold loan amount

  2. Gold loan tenure

  3. Gold loan interest rate

  4. Loan to Value ratio

  5. Current price of the gold

  6. Purity and net weight of the pledged gold

EMI Calculator Example

Varun wants to open a bakery, for which he needs around Rs 5 lakhs. He decides to take a Canara Bank gold loan using his wife’s jewelry. The net cost of the jewelry is Rs 9.5 lakhs. He chooses a loan tenure of 12 months with an interest rate of 12%. Using the EMI calculator, his EMI amount is gauged to be Rs 44,424 per month, which is within his monthly budget.

How to Apply for Canara Bank Gold Loan

Canara Bank customers can easily avail Canara Bank gold loans. A customer can walk into the nearest Canara Bank branch with the required documentation and their gold articles. On filling in a simple form, the gold is evaluated, and the gold loan is sanctioned within a working day. Unfortunately, Canara Bank customers do not have the facility of applying for Canara Bank gold loans online.

Frequently Asked Questions

Question 1: How long does the processing of Canara Bank gold loans take?

Answer: Canara Bank gold loans are disbursed within the same working day, provided that the applicant has the correct documentation and authentic gold articles.

Question 2: What is the maximum gold loan amount that I can receive from Canara Bank?

Answer: The maximum loan amount that applicants can receive is Rs 10 lakhs.

Question 3: What is the minimum gold loan amount that I can receive from Canara Bank?

Answer: The minimum gold loan amount from Canara Bank is Rs 10,000.

Question 4: What is the maximum loan tenure for Canara Bank gold loans?

Answer: The maximum tenure for Canara Bank gold loans is 12 months.

Question 5: What kinds of gold articles does Canara Bank accept as security?

Answer: Canara Bank accepts gold coins and gold ornaments of purity 18K-24K.