Canara Bank Gold Loan Interest Rate : Canara Bank, one of the most trusted and popular banks in India, has a range of financial products and services for its new and existing customers. One of its renowned offerings is the gold loans, which has become quite a popular option for many Indian citizens who are in need of quick cash by offering to pay cash for their jewellery. The bank has three primary gold loan products: Swarna Loan, Swarna Express and Swarna Overdraft. Each of these plans has attractive and favorable interest rates and comes with different features that cater well to different financial needs.
In the next sections, we will examine Canara Bank’s gold loan interest rates for year 2024, processing fees, eligibility, documents to be submitted and the procedure of application in detail.
Canara Bank Gold Loan Interest Rates 2024
Canara Bank offers competitive interest rates for its gold loan schemes. The rates are uniform across all three schemes:
| Type of Loan | Interest Rate |
|---|---|
| Swarna Loan | 9.25% |
| Swarna Express | 9.25% |
| Swarna Overdraft | 9.25% |
Due to these appealing interest rates, gold loans offered by Canara Bank are quite pocket friendly for those seeking immediate financial assistance based on their gold holdings. These rates are adjustable as per the monetary policies of the Reserve Bank of India (RBI) and current market conditions, however, they still rank among the lowest in the gold loan sector.
Canara Bank Gold Loan Per Gram Rate
The amount of gold that one can offer as a security also rests on the prevailing rate of gold. Also in the year 2024, Canara Bank gives out gold loan repayment ranges that are from Rs 3725 to Rs 4000 for each gram of gold. This valuation keeps changing and is subject to day to day movements in the gold prices in the market.
Eligibility Criteria for Canara Bank Gold Loan
To avail of a gold loan from Canara Bank, you must fulfill the following eligibility criteria:
- Indian Citizenship: Only Indian citizens are eligible to apply.
- Age: The borrower must be above 18 years of age.
- Credit Score:A decent credit score is desirable for a gold loan but it is not compulsory. But, a person’s credit history is bound to improve the likelihood of his or her loan getting approved faster.
- Gold Quality: The gold that is pledged should be at least of 22 carat. The loan amount sanctioned varies according to the quality and weight of gold..
Documents Required for Canara Bank Gold Loan
When applying for a gold loan with Canara Bank, you need to submit the following documents:
Gold Valuation Certificate: A certified jeweler’s appraisal, typically provided by the bank’s appraiser
Identity Proof: Aadhaar Card, PAN Card, Voter ID, or Passport
Address Proof: Utility bills, Passport, or Aadhaar card
Proof of Income: Latest salary slip, bank statement, or Form 16 (optional in most cases)
Canara Bank Gold Loan Processing Fees
Canara Bank imposes an insignificant processing charge for availing of its golden loan services. The charge fluctuates depending on the loan scheme you opt for:
- Swarna Loan: 0.50% of the loan amount, with a minimum of Rs; 500 and maximum of Rs; 5,000.
- Swarna Express: 50% of processing fees charged for Swarna Loan.
- Swarna Overdraft: 0.50% of the loan amount, with a minimum of Rs. 500 and a maximum of Rs. 5,000.
How to Apply for Canara Bank Gold Loan
Applying for a Canara Bank gold loan is indeed an easy and quick process. Be it online or offline, you can apply for a gold loan from any nearest Canara Bank branch or from its website. Below is a clear procedure to apply for the loan in details:
Step 1: Visit the Branch or Apply Online
You can avail a gold loan from any of the branches of the Canara Bank or apply through the official website of the Canara Bank. If you are one who likes to visit physically for the services, then identify the nearest branch and request for a gold loan application form.
Step 2: Submit the Application and Required Documents
Go through the application form and attached all the needed documents including your ID, proof of address, proof of income, etc. As well, the gold assets to be concerned should also be taken for assessment.
Step 3: Gold Appraisal and Loan Approval
Upon handing in the gold, the Canara Bank will ask one of its appraisers to examine the gold for its purity and value. Verifying the documents and the gold appraisal, the bank will sanction your loan and transfer the amount to your account once the gold is brought in.
Repayment and Closure of Canara Bank Gold Loan
When it comes to the repayment options for a gold loan obtained from Canara Bank, the Bank provides the borrowers with a very flexible repayment plan. The repayment of the loan amount can be made in easy EMIs or in a lump sum after a period of 12 months; this is referred to as the Bullet Repayment Method, in which the complete principal and interest amount is paid at the end.
After finishing all payments, it is also possible to terminate the loan by paying off all the dues if any. It is also your own responsibility to make sure that the loan is remitted within the given timeframe so as not to incur penalties.
Calculating EMI for Canara Bank Gold Loan
To calculate your monthly EMI for a Canara Bank gold loan, you can use the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where:
- P is the loan amount
- R is the rate of interest (monthly)
- N is the tenure in months
As an illustration, consider taking out a Rs. 50,000 loan with a set interest rate of 9.25% per annum for duration of 1 year. In such a case, the monthly EMI payable will be closest to Rs. 4620. On the other hand, you can use the online EMI calculator available on the Canara Bank’s website for greater accuracy.
Key Takeaways
- Interest Rate: Canara Bank gold loan interest rates start from 9.25% per annum for all gold loan schemes.
- Loan Amount: The loan amount depends on the gold you pledge and the current gold price, with a loan rate per gram ranging from Rs. 3,725 to Rs. 4,000.
- Eligibility: You must be an Indian citizen, above 18 years of age, with gold assets of at least 22-carat purity.
- Processing Fees: Canara Bank charges a processing fee ranging from 0.50% of the loan amount with a minimum of Rs. 500.
Prior to submitting an application for a Canara Bank gold loan, it is advisable to calculate your EMI and have a clear understanding of the repayment process so as to avoid straining your finances. This helps meet urgent financial requirements thanks to gold loans without necessarily selling any of one’s assets.
For further assistance, please call Canara Bank customer care at 1800 1030 or visit the closest branch.