Canara Bank Launches Fast Track Gold Loan Offer for COVID Times

Canara Bank Launches Fast Track Gold Loan Offer for COVID Times

State run Canara Bank has launched a special fast track Gold Loan offer for diverse sectors till 30th June, 2020. This limited-edition Swarna (Gold) Loan Scheme offers instant Cash Loan to customers seeking urgent emergency loans at concessional rate of interest for reviving their business activities during COVID-19 times.

The rate of interest starts from as low as 7.85% per annum for limited duration. The bank assures short turnaround time and flexible repayment structure. The tenure of the Gold Loan can range from 12 months to 36 months (1 to 3 years). In all, the Canara Bank Gold Loan is offered to provide quick liquidity solution for the cash strapped customers amid the spread of pandemic.

There is no capping on the purpose of the loan. Just like Personal Loans, the amount can be utilised for any of the needs, such as business purchases or payments, personal expenses, agriculture and allied activities, medical emergency etc.

The official statement of the Canara Bank says: “As coronavirus changed the socio-economic order, managing daily expense, business continuity, health and family care has become a challenge for many. The scheme aims to meet the financial needs of the customers.”

Canara Swarna Loan:

Highlights of Canara Swarna Scheme

  • Hassle-free application
  • Quick disbursal
  • Affordable rate of interest
  • Flexible Repayment

 

Type of Loan

  • Secured Loan

Collateral

  • Gold coins, jewellery etc
  •  No Guarantor required

Loan Quantum

  • Minimum – Rs. 10,000/-
  • Maximum – Rs.20,00,000/

Tenure

  • 1-3 year of tenure

 

Documents Required

  • Loan Application
  • Certificate by the Jewel Appraiser
  • Salary Certificate
  • Form No.16 / income proof

 

Rate of Interest (linked to RRLR)

  • Up to Rs 5 Lakh: 9.10 %
  • Over Rs 5 Lakh: 9.20%

    *** Concessional offer at 7.85% till June 2020

Processing charges

1% of loan amount
(minimum: Rs. 1,000; maximum: Rs. 5,000)

The customer can pledge gold ornaments, gold coins, and jewellery against the credit. The loan can be available on immediate basis from any of the Canara Bank branches across India.

As for agricultural operations, Canara Bank Gold Loan can be applied against Gold Ornaments. However a capping is set at Rs 10 Lakhs for crop cultivation expenses. For allied agricultural activities, the threshold is set at the maximum of Rs 20 Lakhs per borrower.

Furthermore farmers can also avail of Canara Bank Overdraft Credit Facility against gold jewellery with a maximum limit of Rs 20 Lakhs for harvesting & irrigation purposes. This term loan can be availed for 3 years.

FAQs

✅ What is Cananra Bank Swarna Loan scheme?

Canara Gold Loan Scheme offers fast loan against Gold ornaments, Gold coins, etc for meeting emergency financial needs like medical emergency, unforeseen commitments, etc.

✅ Who can avail Canara Bank Gold loan?

Any Canara Bank Customer holding a Savings Bank account with can apply for Gold Loan. Those who do not have a Canara Bank Account can open a Savings Bank Account with Canara Bank and then avail of this loan facility.

✅ What is the quantum of Gold loan offered?

Canara Bank Swarna Loan is available for Rs.10,000 to Rs 20 Lakhs. The amount will be 65% to 75% of the appraised value of the gold by the bank’s appraiser. The borrower should maintain an LTV ratio of 75% throughout the tenure.

✅ What form of Gold is accepted for loan?

The Gold Loan can be availed against gold ornaments, jewellery and specially minted bank gold coins. The Maximum of 50 grams of coins per customer are accepted for Canara Gold Loan.

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Category: #mmm news    Gold Loan