Gold Loans are secured loans that hold gold jewellery, coins, or bars as collateral to secure the loan. The borrower pledges the gold against the loan amount to the lender bank or an NBFC, i.e., a non-banking financial company. The repayment of the Canara Bank Gold loan can be made through the Bullet repayment method and the interest payment method.
| Canara Bank Gold Loan – A Snapshot | |
| Interest Rate | Floating rates- 9.25% p.a.Fixed rates- 10.35% p.a. |
| Loan Amount | INR 5,000- INR 35 lakh |
| LTV Ratio | Up to 70% of gold’s market value |
| Tenure | Up to 2 years |
| Collateral/Security | Gold ornamentsJewelleryBanks sell specially minted gold coins, i.e., gold struck into the shape of a coin or medal, in quantities of up to 50 gm per customer. |
| Processing Fee | Maximum up to 0.50% of the loan amount, i.e. maximum INR 5,000 |
Features of Canara Bank Gold Loan Scheme
Mentioned below are the features of the Canara Bank Gold Loan Scheme:
- Get a competitive rate of interest, making borrowing more feasible financially.
- Get a gold loan with less documentation, making the process easy and hassle-free to apply for.
- It may be used to entertain genuine and urgent financial requirements under limited restrictions.
- Get loans ranging between INR 5000 and INR 35 lakhs under this process.
- Get loans with small processing fees.
- Get flexible repayment with interest due at the time of maturity.
- Get a simplified application process without a guarantor.
- Only the gold ornaments are eligible for the loan.
- The maximum tenure for the gold loan is 10 years.
- The gold loan can be availed of within a maximum of 30 minutes once approved.
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% |
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
There are 3 prominent types of Gold Loans offered by Canara Bank, namely Swarna Express, Swarna Overdraft, and Swarna Loans. Each and every gold loan has its own pros and cons. In this article, let us understand the difference between the Swarna Gold Loan and the Swarna Express Gold Loan.
Highlights of Swarna Gold Loan vs Swarna Express Gold Loan
Basis | Swarna Gold Loan | Swarna Express Gold Loan |
| Purpose | To meet the medical expenses or any other unforeseen contingencies. | To meet any medical expenses or any other unforeseen commitments and contingencies. |
| Loan Amount | 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. | 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. |
| LTV Ratio | Up to 65% of the appraised value of gold | Up to 70% of the appraised value of gold |
| Tenure | Up to 1 year | Up to 6 months |
| Repayment Option | Bullet repayment method | Bullet Repayment Method |
| Security | Pledge ofGold ornamentsGold JewelleryOr specially minted gold coins that are sold by banks for up to 50 grams per applicant. | Pledge ofGold ornamentsGold JewelleryOr specially minted gold coins that are sold by banks for up to 50 grams per applicant. |
- Swarna Loans
Benefits:
- Loan to meet unforeseen contingencies.
- Lower Rate of Interest.
- No Prepayment penalty.
- Minimal processing charges.
- Quick processing and disbursement.
Purpose:
- To meet medical expenses and some other unforeseen contingencies or commitments, etc.
Features:
Nature of Facility
- Single Transaction Limit
Loan Quantum
- 65% of the Appraised Value of Gold.
- Minimum Amount – INR 5000/-
- Maximum amount – INR 35 Lakh per borrower
Under three schemes, Swarna loan, Swarna OD, and Swarna Express
Security
- Pledge of Gold ornaments or Jewellery.
- Pledge of Specially minted Gold coins sold by banks up to 50 grams per customer.
Repayment
- The loan is to be repaid as a bullet payment along with interest within 12 months from the date of sanction.
Nomination Facility is available.
Eligibility
- Resident Individuals
- NRIs
- Swarna Express
Benefits:
- To meet the expenses of allied activities
- Lower Rate of Interest.
- No Prepayment penalty.
- Minimal processing charges.
- Quick processing and disbursement.
Purpose:
- To meet medical expenses and other unforeseen Commitments/ Contingencies, etc.
Features:
Nature of Facility
- Single Transaction Limit
Loan Quantum
- 70% of the Appraised Value of Gold.
- Minimum Amount – INR 5000/-
- Maximum amount – INR 35 Lakh.
Under three schemes, Swarna loan, Swarna OD, and Swarna Express, the ceiling is INR 35 Lakh per borrower.
Security
- Pledge of Gold ornaments or Jewellery.
- Pledge of Specially minted Gold coins sold by banks up to 50 grams per customer.
Repayment
- The loan should be repaid via the bullet repayment method along with the interest within 6 months from the date of sanction.
Nomination Facility is available.
Eligibility
- Resident Individuals
- NRIs
