Canara Bank Gold Loan Interest Rate

Compare Canara Bank gold loan’s interest rate with other banks.

Note: The below mentioned fees and charges may change and shall depend on the sole discretion of bank and RBI, GST and service tax are not added in the mentioned charges and will be levied extra by the bank.

If you want, you can use our Gold Loan EMI Calculator to know how much monthly payments you must make on your loan amount. To use the calculator simply follow the below given steps.

• Click here to go to EMI Calculator
• Enter the loan amount, interest rate and loan tenure that you are being offered by the bank
• The EMI amount will be displayed on the right-hand side of the screen

The EMI Calculator lets you compare the monthly EMI Payments across various banks. This will help you select a scheme that is best suited to your needs. This service is free of cost and can be used multiple times.

The following factors affect the interest rate and the loan amount that Canara Bank gives to you. These factors are:

Loan Amount – The interest rate that you are offered is directly affected by the amount of gold loan that you ask for. Therefore, higher loan amounts will incur higher interest rates.

Purity & Quantity – The purity and quantity of gold articles also determine the loan amount that you are offered. The bank nominates an appraiser who will check the gold items for purity and quantity. The bank will extend the loan amount as per the verdict of the appraiser.

Income – Canara Banks does require income proof from its customers. They use it to judge the applicant’s repayment capacity which in turn affects the interest rate and loan amount.

Lending Rate of Banks – Another factor that determines the interest rate offered to you is the MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR (Repo Rate Linked Lending Rate). Banks that issue loan against MCLR rates is not affected by RBI’s directive as much as RRLLR based banks. Canara Bank issues loan against RRLR rate.

Canara Bank offers three types of gold schemes. These are:

Swarna Loan | Swarna Overdraft | Swarna Express

The interest rate charged against these schemes is 7.65% p.a. onwards

The Tenure and Repayment Method of the three schemes is given below

The fees and charges associated with various Canara Bank gold loan schemes are:

Other fees and charges like Appraiser Charges will be shared at the time of application.

Canara Bank extends a gold loan to existing applicants who have a Savings Account with the bank. New customers must be able to prove their creditworthiness at the time of loan application. Also, the applicant must be an Indian who is 18 years old or more with a stable source of income.

Documents Required

The following documents are required by Canara Bank:

• Application for Swarna Loan
• KYC document to establish income proof (Latest salary slip, Form 16, bank statement)
• Certificate by the Jewel Appraiser. The appraiser will be arranged by the bank

Canara Bank gold loan can be applied for by visiting any one of its branches. Once there contact a branch official who will guide you through the process which includes the appraisal of your gold articles by a bank nominated appraiser. Canara bank will then let you know the amount of loan you can apply for as per the Canara Bank gold loan per gram rate.

Once your application has been approved you can expect quick disbursal of the loan amount.

Consider Reading: 6 Common Mistakes to Avoid When Applying for a Gold Loan

Can I also get a gold loan against gold coins?
Yes, under the Swarna gold loan scheme, gold loan can be availed against gold coins sold that were sold by banks. However, the limit is up to maximum 50 grams per customer.

Do I need to provide any other security to avail gold loan?
The gold pledged by you to the bank is the only security required to avail a gold loan.

How long does it take to process a gold loan application?
You can expect disbursement of the gold loan within one or two working days post appraisal of your gold ornaments.

Do I need a co-applicant to avail Canara Bank gold loan?
Canara Bank does not require a co-applicant for gold loans.

Is Canara Bank agriculture gold loan provided by the bank?
Canara Bank agriculture gold loan is not a separate scheme provided by the bank. However, you may use Canara Bank Gold Loan to meet your agricultural needs.