Unlocking Value: A Comprehensive Guide to Canara Bank Gold Loans

Canara Bank offers a loan of up to INR 35 lakh at a 9% p.a. Gold Loan Interest Rate for a period of up to 2 years. This loan can be used against gold jewellery, ornaments, or specially minted coins, and repayment can be made via the bullet repayment method. The bank offers three gold loan schemes: Swarna Loan, Swarna Express, and Swarna Overdraft. It also allows borrowers to avail of a loan equal to 90% of the cost of the gold items.

Key Highlights of Canara Bank Gold Loan Interest Rate
Canara Bank Gold Interest Rate	7.65% p.a. onwards
Eligibility	Savings account with satisfactory dealings Or Credit-worthy New Customers
Loan Amount	INR 5,000 to INR 20 lakh
Loan Tenure	Swarna Loan – 12 months Swarna Overdraft – 24 months Swarna Express – 6 months
Repayment	Bullet Repayment
Gold Items accepted	Jewellery and gold coins sold by banks
Canara Bank Gold Loan Processing Charges	0.25% of the loan amount
Canara Bank Gold Loan per Gram	Shared at the time of application

Steps to Apply for Canara Bank Gold Loan

Offline Method:

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

Step 1: Visit the nearest branch of Canara Bank that offers a gold loan. Not all branches offer gold loans; only a few have been designated for this purpose.

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 assess the documentation, eligibility, and value of the gold and then process the loan application accordingly.

Step 6: The loan amount will then be disbursed instantly.

Online Method:

Step 1: Open the official website of Canara Bank.

Step 2: Under the tab “Gold Loan”, click “Online Application”.

Step 3: Fill out the gold loan application form with details like Name, mobile number, E-mail ID, residence, etc.

Step 4: The bank representative will contact you further to proceed with the loan application.

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%

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.

Individuals	Joint accounts	Minor accounts	Illiterates
Non-corporate bodies	Clubs	Societies	Associations
Trusts	Executors/Administrators	Government bodies	Semi-Government Departments
HUF	Schools	Recognised PF A/c’s	Capital Gains Account

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

Service Charges on Gold Loan Schemes

1. 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

2. 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

3. 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

Features of Different Canara Bank Gold Schemes

Mentioned are the different features of Canara Bank Gold Schemes:

Swarna Loan

Nature of Facility	Single Transaction Limit
Loan Quantum	65% of the Appraised Value of Gold.Minimum Amount – INR 5000/-Maximum amount – INR 35 Lakh. The ceiling for three schemes, Swarna loan, Swarna OD, and Swarna Express, is INR 35 Lakh per borrower.
Security	Pledge ofGold ornamentsGold JewelleryOr specially minted coins in gold that are sold by banks for up to 50 grams per applicant.
Repayment	The repayment of the loan is to be done within 12 months from the date of sanction via the bullet repayment method along with interest.

Swarna Express Loan

Nature of Facility	Single Transaction Limit
Loan Quantum	70% of the Appraised Value of Gold.Minimum Amount – INR5000/-Maximum amount – INR 35 Lakh. The ceiling for three schemes, Swarna loan, Swarna OD, and Swarna Express, is INR 35 Lakh per borrower.
Security	Pledge ofGold ornamentsGold JewelleryOr specially minted coins in gold that are sold by banks for up to 50 grams per applicant.
Repayment	The repayment of the loan is to be done within 6 months from the date of sanction via the bullet repayment method along with interest.

Swarna Overdraft

Nature of Facility	Overdraft
Loan Quantum	75% of the Appraised Value of Gold.Minimum Amount – INR 5000/-Maximum amount – INR 35 Lakh. The ceiling for three schemes, Swarna loan, Swarna OD, and Swarna Express, is INR 35 Lakh per borrower.
Security	Pledge ofGold ornamentsGold Jewellery.Or specially minted coins in gold that are sold by banks for up to 50 grams per applicant.
Repayment	The revolving Credit Facility is tenable for 24 months and is subject to annual review.Interest to be serviced as and when due at monthly intervals.

Benefits of Canara Bank Gold Loan

Mentioned are the benefits of the Canara Bank Gold Loan: