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:
- Hassle-free application
- Minimal documentation
- Attractive interest rates
- Quick disbursal within an hour
- Standard loan amount against the value of the gold
- Secure storage