Canara Bank Gold Loan is a loan offered against your gold ornaments or coins. The bank lends a certain percentage of the gold's appraised value. Canara Bank's gold loan interest rate is competitive and currently 9.25% per annum for 2024. However, the exact rate might vary based on factors like loan amount, gold purity, and prevailing market conditions.
The Canara Bank gold loan interest rate is currently 9.25% p.a. and the rate per gram ranges from ₹3,725 to ₹4,000, and may change based on the daily fluctuation of gold prices.
Table of Content
- ⇾ Canara Bank Gold Loan Interest Rate 2024
- ⇾ Highlights of Canara Bank Gold Loan
- ⇾ Other Fees and Charges For Canara Bank Gold Loan
- ⇾ Canara Bank Gold Loan Eligibility Criteria
- ⇾ Documents Required for Canara Bank Gold Loan
- ⇾ Types of Canara Bank Gold Loan
- ⇾ Comparison of Canara Bank Gold Interest Rate and Other Banks
- ⇾ Factors Affecting Canara Bank Gold Loan Interest Rates
- ⇾ Loan Against Gold Jewellery
- ⇾ Steps to Apply For Canara Bank Gold Loan
- ⇾ Calculation of Canara Bank Gold Loan EMI
- ⇾ Closing Canara Bank Gold Loan
- ⇾ Frequently Asked Questions
Canara Bank Gold Loan Interest Rate
Canara Bank offers three main gold loan programs: Swarna Loan, Swarna Express, and Swarna Overdraft. Below is a table showing the Canara Bank gold loan interest rates for various schemes in 2024.
| Type of Gold Loan | Interest Rate (p.a.) |
|---|---|
| Swarna Loan | 9.25% |
| Swarna Express | 9.25% |
| Swarna Overdraft | 9.25% |
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Highlights of Canara Bank Gold Loan
The below table gives the overview of Canara Bank Gold Loan.
| Features | Details |
|---|---|
| Nature of Facility | Single Transaction |
| Loan Quantum | 65% of the Appraised Value of Gold |
| Minimum Loan Amount | ₹ 5000/- |
| Maximum Loan Amount | ₹35 Lakh (subject to a ceiling of ₹35 Lakh per borrower across all gold loan schemes) |
| Security | Pledge of Gold ornaments/jewellery or Specially minted Gold coins sold by banks (up to 50 grams per customer) |
| Repayment | Bullet payment within 12 months from sanction, along with interest |
| Additional Feature | Nomination Facility available |
Canara Bank Gold Loan Fee & Charges
The processing fee is applied to all gold loan applications. The processing charges for Canara Bank Gold Loan vary depending on the loan scheme, as outlined below:
| Loan Scheme | Processing Fee |
|---|---|
| Swarna Loan | 0.50% of loan amount (min Rs. 500, max Rs. 5,000) |
| Swarna Express | 50% of Swarna Loan charges |
| Swarna Overdraft | 0.50% of loan amount (min Rs.500, max Rs. 5,000) |
Canara Bank Gold Loan Eligibility Criteria
To be eligible for Canara Bank gold loans with competitive interest rates, individuals must meet the following criteria:
- Citizenship: You should be an Indian citizen.
- Creditworthiness: A good credit score and history are required to demonstrate your financial reliability.
- Age: Borrowers must be at least 18 years old.
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Documents Required For Canara Bank Gold Loan
Here are the documents needed to apply for a Canara Bank gold loan:
- KYC documents such as the latest salary slip, bank statement, etc.
- Statement from a jewel appraisforanara Bank will appoint an appraiser for your gold.
- Form 16 or salary certificate as evidence of income.
Types of Canara Bank Gold Loan
Canara Bank offers multiple gold loan schemes to cater to diverse customer needs. Let's explore the different types available.
Swarna Loan
- Facility Type: Single Transaction
- Loan Amount: 65% of Gold's Appraised Value (Minimum ₹5000, Maximum ₹35 Lakh, Total Limit ₹35 Lakh across all schemes)
- Security: Pledged Gold Ornaments/Jewellery or Specially Minted Gold Coins (up to 50 grams)
- Repayment: Bullet Repayment within 12 Months (along with interest)
Swarna Overdraft
- Nature of Facility: Overdraft
- Loan Quantum: 75% of the Appraised Value of Gold (Minimum ₹5000, Maximum ₹35 Lakh, Subject to a ceiling of ₹35 Lakh per Borrower across all schemes)
- Security: Pledge of Gold ornaments/Jewellery or Specially minted Gold coins sold by banks (up to 50 grams per customer)
- Repayment: Revolving Credit Facility for 24 Months (Subject to Annual Review), Interest payable monthly.
Swarna Express
- Nature of Facility: Single Transaction
- Loan Quantum: 70% of the Appraised Value of Gold (Minimum Rs. 5000, Maximum ₹35 Lakh, Subject to a ceiling of ₹35 Lakh per Borrower across all schemes)
- Security: Pledge of Gold ornaments/Jewellery or Specially minted Gold coins sold by banks (up to 50 grams per customer)
- Repayment: Bullet payment within 6 months from the date of sanction along with interest.
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Comparison of Canara Bank Gold Interest Rate vs. Other Banks
The table below shows the comparison of gold loan interest rates of Canara Bank with other leading banks.
| Top Banks | Interest Rates |
|---|---|
| Canara Bank | 9.25% p.a. Onwards |
| State Bank of India | 7.30% p.a. Onwards |
| Union Bank of India | 9.25% p.a. Onwards |
| Bandhan Bank | 8.28% p.a. Onwards |
| RBL Bank | 7.11% p.a. |
| YES Bank | 9.65% to 15.65% p.a. |
| Indian Overseas Bank | 7.05% p.a. |
| IndusInd Bank | 10% - 16% p.a. |
| Punjab National Bank | 9.25% p.a. |
| Indian Bank | 8.80% p.a. Onwards |
| Karur Vysya Bank | 9.80% – 10.75% p.a. |
| Federal Bank | 8.15% p.a. Onwards |
| Axis Bank | 8.85% p.a. Onwards |
| ICICI Bank | 10.50% p.a. Onwards |
| HDFC Bank | 8.50% p.a. Onwards |
| Kotak Mahindra Bank | 8% - 17% p.a. |
| City Union Bank | 9.70% p.a. Onwards |
| IDFC First Bank | 10.55% p.a. Onwards |
| Central Bank of India | 7.35% p.a. Onwards |
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Note: The gold loan interest rates mentioned above are subject to change. For more recent information, please check the official bank website.Factors Affecting Canara Bank Gold Loan Interest Rates
Several factors influence the interest rate you'll receive on a Canara Bank gold loan:
- Gold Purity: Higher purity gold generally attracts lower interest rates.
- Loan Amount: Larger loan amounts might come with slightly different interest rates.
- Repayment Tenure: The duration of the loan can impact the interest rate.
- Market Conditions: Fluctuations in gold prices and overall economic conditions can influence interest rates.
- Loan Scheme: Different gold loan schemes offered by Canara Bank might have varying interest rates.
- Customer Profile: Factors like credit history and relationship with the bank might indirectly influence interest rates.
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Calculation of Canara Bank Gold Loan EMI
You can use the following formula to calculate the EMI for a gold loan:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
P= Loan Amount
R= Rate of interest per month
N= Loan tenure in months
To illustrate, let's consider an example: Suppose you take a gold loan of ₹ 50,000 at an interest rate of 9.24% for a duration of 1 year. Now, let's calculate the total interest you would pay during the loan tenure.
Using the formula, we get:
EMI= [50,000 x 0.77 x (1+0.77)^12]/[(1+0.77)^12-1]
EMI= ₹ 4620
To avoid errors during manual calculations, you can also use an online EMI calculator to understand the potential EMI you would pay every month.
Loan Against Gold Jewellery
Canara Bank offers loans against Gold jewellery for various activities. These include:
Loan Against Gold Jewellery for Land Development Activities
This loan facility is designed to cover the costs of land development activities such as leveling, construction of bunds, watershed, fencing, trenching, farm pond, irrigation channel repair & maintenance, and more.
| Feature | Details |
|---|---|
| Nature of Facility | Single Transaction |
| Loan Quantum | 80% of the Appraised Value of Gold (Minimum ₹100, Maximum ₹35 Lakh, Subject to a ceiling of ₹35 Lakh per Borrower) |
| Security | Pledge of Gold ornaments/Jewellery or Specially minted Gold coins sold by banks (up to 50 grams per customer) |
| Repayment | Maximum 12 months from sanction in monthly/quarterly/half-yearly or lump sum |
Loan Against Gold Jewellery for Allied Activities
This facility is designed to support Allied Activities such as Fisheries, Animal Husbandry, Poultry, Beekeeping, and Sericulture.
| Feature | Details |
|---|---|
| Nature of Facility | Single Transaction |
| Loan Quantum | 80% of Appraised Gold Value (Min ₹ 100, Max ₹35 Lakh, Total Limit ₹35 Lakh) |
| Security | Pledged Gold Ornaments/Jewellery or Specially Minted Gold Coins (up to 50 grams) |
| Repayment | Monthly installments within 12 months from sanction |
| Additional Feature | Nomination Facility Available |
Loan Against Gold Jewellery for Crop Cultivation
This loan is used to cover the costs of cultivating crops.
| Feature | Details |
|---|---|
| Nature of Facility | Overdraft |
| Loan Quantum | 85% of Appraised Gold Value (Min ₹1.60 Lakh, Max ₹ 10 Lakh, Total Limit ₹ 10 Lakh) |
| Security | Pledged Gold Ornaments/Jewellery or Specially Minted Gold Coins (up to 50 grams) |
| Repayment | Revolving Facility for 36 Months (Annual Review), Simple Interest Half-Yearly |
| Additional | Nomination Facility Available |
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Steps to Apply for Canara Bank Gold Loan
Here are the steps to apply for a Canara Bank gold loan:
Step 1: Go to your nearest Canara Bank location.
Step 2: Ask the bank representatives for a gold loan application form.
Step 3: Fill out the application form with the required details.
Step 4: Collect all necessary documents to support your application.
Step 5: Submit the completed application form along with the required documents and the gold assets you plan to pledge.
Step 6: The bank officials will process your application, examining the gold and verifying your documents.
Step 7: Once your authenticity and credibility are confirmed, the bank will approve your loan amount.
Step 8: The approved loan amount will be disbursed into your account.
Canara Bank Gold Loan Repayment
To close the Canara Bank gold loan, full repayment is required within one year of loan approval. The Bullet Repayment Method allows repayment within 12 months of approval, with payments covering interest and principal components of the outstanding amount. Monthly interest calculations result in a higher principal amount, which must be cleared at the end of the tenure. Hence, choose a suitable tenure to manage financial obligations and maintain discipline.
Besides SBI gold loan rates, you can also check more from the links given below:-
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Frequently Asked Questions
The current interest rate for Canara Bank gold loans is 9.25% per annum, and can vary depending on the loan amount and tenure.
The interest rate is calculated based on factors such as the loan amount, the purity of the gold, and the tenure of the loan. The bank assesses the value of the gold pledged to determine the loan amount and applicable rate.
Canara Bank offers both fixed and floating interest rates on gold loans. Borrowers can choose between the two options based on their preferences.
Canara Bank typically revises its gold loan interest rates periodically, depending on market conditions and the bank's policies. This may occur quarterly or biannually.
Factors influencing the interest rates include the market price of gold, the purity of the gold, the loan amount, the tenure, and the bank's overall lending policies.
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