• Canara Bank Gold Loan

    You can apply for a gold loan from Canara Bank where the lender charges interest rates at their MCLR rates at 7.25% p.a. with maximum loan amount up to Rs.35 lakh. The maximum repayment tenure is up to 2 years and 0.5% of the loan amount subject to a minimum of Rs.500 is charged as a processing fee.

    Canara Bank Gold Loan Details

    Interest Rate Up to 7.25% p.a.
    Loan Amount Up to Rs.35 lakh
    Loan Tenure Up to 2 years
    Processing Fee 0.5 % of the loan amount + GST subject to a minimum of Rs.500

    Canara Bank offers a gold loan scheme called Swarna Loan which can be availed by keeping gold as security, primarily designed to meet any financial emergencies. Gold is returned on repayment of a loan, making it a temporary contingency plan during financial hardships.

    Features of Canara Bank Gold Loan (Swarna Loan)

    • Immediate assistance – Canara Bank has minimised the paperwork for this loan, making it hassle free and easy to avail.
    • Competitive interest rates – Swarna Loan comes at competitive interest rates, making a loan financially tenable.
    • Multipurpose – This loan can be used to meet any genuine financial emergency, subject to certain conditions.
    • High loan amount – Loan amounts ranging between Rs.5,000 and Rs.35 lakh can be availed under this scheme.
    • Low processing fee – A low processing fee is charged by Canara Bank for this loan.
    • Flexible repayment – Borrowers can repay the loan within a period of 1 year, with the interest payable only on maturity.
    • Guarantee – This loan doesn’t require a guarantor, easing application hassles.

    Eligibility criteria to avail Canara Bank Swarna Loan

    Individuals who wish to avail the Swarna Loan from Canara Bank need to satisfy a few basic criteria.

    • Income – Applicants should be salaried/self-employed with a sufficient source of income.
    • Accountholder – Applicants should have existing Savings Bank accounts with Canara Bank. Individuals without an account need to be introduced by trusted customers.

    Documents required for Canara Bank Gold Loan (Swarna Loan)

    Canara Bank has adopted a minimalist approach when it comes to documentation, with applicants expected to furnish a few basic documents.

    • ID/Address proof – Valid government approved ID/address proof (Passport, PAN card, DL, etc.)
    • Application form – Duly filled and signed application form
    • Income proof – Form 16 or Salary certificate from employer
    • Gold certificate – Certificate from jeweller appraising quality of gold. This appraisal will be arranged by the bank.

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    Fees and charges associated with Canara Bank Swarna Loan

    Type of fee Amount
    Processing fee

    0.5% of loan amount, subject to:

    Minimum – Rs 500

    Maximum – Rs 5,000

    Appraisal fee Ranges from case to case

    FAQs on Canara Bank Gold Loan (Swarna Loan)

    1. What kind of security should one provide to avail this loan?

      This loan can be availed by providing security in the form of gold coins or gold ornaments.

    2. Can one avail this loan at all Canara Bank branches?

      No, a Swarna Loan can be availed only at certain specific branches of the bank.

    3. Can individuals without a SB account with Canara Bank avail this loan?

      No, individuals who do not have a SB account with Canara Bank can apply for this loan after opening an account.

    4. What is the repayment tenure for this loan?

      The entire loan amount should be repaid within a period of 1 year. A bullet payment program is utilised here, wherein the interest needs to be paid along with the principal at the end of 1 year.

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