Canara Bank Gold Loan

The following are the features of the Canara Bank gold loan:

• Purpose: The Canara Bank gold loan can be availed of to meet various expenses, just like a personal loan. You can use the loan amount to meet medical expenses, any unforeseen commitments or contingencies, etc.
• Loan amount: You can avail of a minimum loan amount of Rs. 5,000 up to a maximum of Rs. 35 Lakhs. The rate of advance will be 85% of the rate per gram of sovereign touch gold (22-carat gold) advised by the bank for Gold Loan from time to time or 65% of the appraised value, whichever is lower. The borrower is required to maintain an LTV ratio of 75% throughout the loan tenure and repay any amount in excess of that at any time to the bank.
• Rate of interest: The Canara Bank gold loan interest rate is charged on a floating basis, and it is linked to the Base Rate. At present, the interest rate is 3% above the Base Rate, and the effective rate of interest is13% p.a.
• Nature of credit facility: The loan can be availed of as a Single Transaction Limit (STL) or an Overdraft (OD).
• Security: Canara Bank gold loan can be obtained against the pledge of gold ornaments or jewellery, specially minted gold coins sold by banks, and not against gold coins, bullion, etc. The total weight of these minted gold coins should not exceed 50 grams per customer.
• Types: Canara Bank offers three types of gold loans, i.e., Swarna (Single Transaction Limit), Swarna Express (Single Transaction Limit), and Overdraft Facility.
• Repayment tenure: The entire loan has to be repaid within 12 months from the date of sanction as a bullet payment along with interest under Swarna (Single Transaction Limit). For Swarna Express (Single Transaction Limit), the entire loan should be repaid within 6 months from the date of sanction as a bullet payment along with interest.
• Prepayment charges: The bank does not charge any penalty on the prepayment of the gold loan. You can make prepayments whenever you want to.
• Processing fees: A processing fee of 1% of the sanctioned loan amount, subject to a minimum of Rs 1,000 and a maximum of Rs. 5,000 per loan, will be applicable.

Canara Bank gold loan is offered under two schemes, i.e., Swarna (Single Transaction Limit) and Swarna Express (Single Transaction Limit).

The entire loan has to be repaid within 12 or 6 months (depending on the scheme) from the date of sanction as a bullet payment along with interest.

The interest will be applied to the account at monthly rests compounded, but will become due for payment along with the principal only at maturity.

The Canara Bank gold loan interest rate is charged on a floating rate of interest basis and is linked to the Base Rate. At present, the rate of interest is 3% above Base Rate, i.e.8.90% p.a.

The eligibility criteria for the Canara Bank gold loan are explained below:

• Canara Bank offers gold loans to only existing applicants who hold a Savings Account with the bank. If you do not already have a Savings Bank account, you can open one by complying with all the requirements, and thereafter, you can avail of a loan under this scheme.
• New customers must prove their creditworthiness at the time of loan application.
• The applicant must be an Indian resident.
• The applicant should be at least 18 years old or more when applying for the loan.
• The applicant must have a stable and regular source of income.
• The Canara Bank gold loan is available against the pledge of gold ornaments/ jewellery, specially minted gold coins sold by banks, and not against gold coins, bullion, etc.
• The total weight of specially minted gold coins sold by the banks should not exceed 50 grams per customer.
• These loans can be availed of from designated branches only.
• You can use the Canara Bank gold loan calculator to know your loan eligibility before applying for the loan.

The documents required for the Canara Bank gold loan are mentioned below:

• Gold loan application form - duly signed and completely filled in.
• KYC documents to establish the applicant’s identity, such as a Passport, Aadhar Card, PAN Card, Driving License, etc.
• Income proof, such as the latest salary slips, Form 16, bank statements, etc.
• Certificate by the Jewel Appraiser, who will be arranged by the bank.

Below is the comparison table of Canara Bank's gold loan and gold loan schemes of other lenders. You can check the lowest gold loan interest rate in which bank before applying for a gold loan.

The following are the types of gold loan schemes offered by Canara Bank:

• Swarna (Single Transaction Limit): The entire loan has to be repaid within 12 months from the date of sanction as a bullet payment along with the interest amount. Interest will be charged to the account at monthly rates compounded but will become due for payments along with principal only at maturity.
• Swarna Express (Single Transaction Limit): Under this scheme, the entire loan has to be repaid within 6 months from the date of sanction as a bullet payment along with interest. Interest will be charged to the account at monthly rates compounded but will become due for payments along with principal only at maturity.
• Overdraft Facility: You can avail of the Canara Bank gold loan as an overdraft facility for 2 years, subject to an annual review of the bank. Interest is to be serviced monthly on this scheme.

The fees and charges associated with the Canara Bank gold loan are mentioned below:

• Rate of interest: Canara Bank gold loan interest rate starts from 8.90% p.a. onwards. The rate is competitive and highly affordable.
• Processing charges: 1% of the sanctioned loan amount, subject to a minimum of Rs. 1,000 and a maximum of Rs. 5,000 per loan.
• Jewel appraising charges: The bank also charges a jewel appraising fee as applicable for the appraisal of the mortgaged gold.
• Prepayment penalty: The bank does not charge any fee for prepayment of the loan amount. You can foreclose the loan account whenever you wish to.

You can use the Canara Bank gold loan calculator available online to calculate the loan eligibility against your gold jewellery. The gold loan calculator will help you in the estimation of how much loan amount you will get instantly on your gold jewellery/coins.

To use the calculator, you just need to enter the loan tenure (in months), the number of gold jewellery/ornaments that you have, the weight of the ornaments, and gold carat details. The tool will give you the estimated loan amount eligibility based on the details you have entered.

The calculator helps you in deciding a suitable EMI that you will be able to pay every month conveniently. You can plan your monthly budget if you are aware of your monthly obligations beforehand.

Canara Bank gold loans can be granted by designated branches only. Once you reach there, contact a bank official who will guide you through the application process, including the appraisal of your gold items by a bank-nominated appraiser. The bank will then inform you about the loan amount for which you are eligible as per the bank’s criteria. Once your application is approved by the bank, you can expect a quick disbursal of the loan amount.

If you have any questions regarding the Canara Bank gold loan, you can call on the following toll-free and non-toll-free numbers:

• Toll-Free Numbers
  • 1800 425 0018
  • 1800 103 0018
  • 1800 208 3333
  • 1800 3011 3333
• Non-Toll-Free Numbers
  • If calling from outside India: +91-80-22064232

Customers can call the above-mentioned toll-free numbers only for complaints/issues.