Canara Bank Gold loan
Canara Bank Gold Loan will assist you cover personal needs, unexpected bills, and other expenses. The Swarna Loan or the gold loan can be used to purchase gold jewelry or bank-sold struck gold coins. A maximum loan amount of Rs. 20 lakhs is available. Eligible applicants can expect a speedy response from the bank. There is no requirement for a guarantee or a joint commitment or a Canara Bank Account Balance. Swarna Overdraft and Swarna Express are the other two initiatives. The terms of repayment are varied. You have the option of choosing between bullet payments and repayment flexibility.
Canara Bank Gold Loan features, eligibility requirements, interest rate, documents necessary, repayment module, processing costs, and commonly asked questions will be discussed in this post.
Canara Bank Gold loan- The basic advantage
Canara Bank’s gold loan can help you fulfill an urgent cash need by pledging your gold jewelry or gold coins as collateral. Existing Canara Bank clients, as well as new borrowers, can benefit from gold development, which is likely the fastest type of securing. With Canara Bank gold loan, you will not only benefit from the gold credit, but also get a true value for your gold.
Here’s everything you need to know about the cost of Canara Bank gold credit financing, as well as residence, aggregate, and other terms and conditions.
|Canara Bank Gold Loan Rate of Interest||7% onward annually|
|Canara Bank Gold Loan Amount for Per Gram Gold||Decided at the time of application as per Gold Rate|
assumption- Per Gram ₹ 3,506 to ₹ 4,621 (approx)
|Canara Bank Gold Loan Age Limit||18 to 65 years of age|
|Maximum Loan Amount for Canara Bank Gold Loan||Rs. 5,000 to Rs. 20 lakh|
|Minimum Loan Amount for Canara Bank Gold Loan||Up to 75% of LTV|
|Prepayment Charges for Gold Loan @ Canara Bank||2%+GST (Within 3 Months), 0 (After 3 months)|
|Maximum Loan Tenure||Swarna Loan – 12 months|
Swarna Overdraft – 24 months
Swarna Express – 6 months
|Minimum EMI Per Lakh||Rs. 8,683 (approx) for 1 lakh Loan|
|Canara Bank Gold Loan Processing Charges||0.25% of the loan amount|
Canara Bank Gold Loan-The main Features discussed below
The following are the features:
- The loan is for a sum ranging from Rs. 5,000 to Rs. 20 lakhs.
- You can utilize the money for a variety of things, including emergencies, household bills, unplanned expenses, investments, and more.
- You can get an Overdraft, a Term Loan, or an Instant Loan.
- Depending on the type of the diamond loan plan, the tenure can be up to two years.
- The interest rate on the Swarna Loan starts at 7.65%.
- At the very least, gold purity should be between 18 and 22 carats.
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Rate of Interest for Canara Bank Gold Loan
- The interest rate on the Canara Bank gold loan is based on the Repo Linked Lending Rate (RLLR).
- The RLLR is at 6.90 percent. There is a 0.75 percent risk spread.
- As a result, the effective rate is 7.65%.
- The exact applicable rate is determined on the weight and purity of the pledged gold, as well as the LTV (loan to value ratio).
- It is also determined by the amount of the loan requested, the length of the loan, and other considerations.
Canara Bank Gold Loan-The complete brief
- Goal – The goal here is to meet every type of gold loan demand including agricultural.
- Eligibility – The Canara Bank Gold Loan is available to anyone who owns ornaments, gold jewelry, or coins and has an account with one of the bank’s branches.
- Loan Amount – The consolidated loan amount for agriculture, MSME, OPS, Retail, Consumption can be anything between Rs 5000 and 20 lakhs. The agricultural loan limit is 15 lakhs.
- Security/ Collateral – The bank may ask you to provide the ornaments, gold jewelry, or coins as security for your Gold loan.
- Margin — For agricultural purposes, the margin is 15-20%, while for MSME/OPS, it is 25%. (15 percent till 31.03.2021)
- Interest Rates – The interest rate on hallmarked jewelry and gold coins is 7.35 percent, while it is 7.40 percent for daily jewelry.
- Gold ornaments, jewelry, coins etc. at your possession with a purity between 18 to 22 carat and a weight of up to 50 grams are accepted.
Canara Bank Gold Loan- The Monthly installment (EMI Calculator)
The most advantageous gold loan EMI Calculator is an online application that allows individuals or applicants to calculate the EMI or installment for a loan they intend to take out against their own gold or gold jewelry (You may use the Loanpersonal.in EMI calculator for this available in this page). Personal gold or gold ornaments must also be kept with Canara bank as collateral or security until the total loan amount taken is repaid within the particular tenure offered by the bank
The main aspect of the Gold Loan EMI calculator is that it can always assist an application in calculating the approximate. In order to return the amount borrowed, the EMI must also be paid.
- The EMI calculator includes the latest gold rate into the calculation
- This also allows you to check out several types of possibilities to discover the best Gold loan that is suitable for your requirement.
- Knowing the EMI payable on a gold loan or other loan allows you to adapt your monthly budget so that you can make timely gold loan payments.
Approval & Eligibility factors of Canara Bank Gold Loans
The following are the prerequisites for gold loan Application:
- Savings bank account holders with a good credit rating.
- They must have a positive experience with the bank.
- An introducer is required if a new customer applies.
- The new consumer should also have a good credit rating.
Documents that are accepted for a Gold Loan from Canara Bank
The following are the documents that must be submitted:
• An application form that is completely filled out and signed.
• Proof of income (Salary Certificate/Form No. 16)
• The bank will arrange for the Jewel Appraiser to provide a Valuation Certificate for Swarna Loan repayment.
Here’s everything you need to know about repayment:
• The Swarna Loan has a maximum term of 12 months from the date of sanction as a bullet payback with interest.
• The account earns interest on a monthly basis.
It’s compounded, but it’s due with the principle at the end of the term.
• The Swarna Overdraft has a two-year tenure.
• Bullet payment is required for Swarna Express.
The contract is for a period of up to six months.
Canara Bank Gold Loan- (Processing Fees)
The following are the specifics:
- Swarna Loans: This loan category offers 0.50% of the LA i.e. loan amount (from Rs.500/- and maximum of up to Rs. 5,000/-).
- Swarna Overdraft: This overdraft loan category offers 0.50% of the LA i.e. loan amount (minimum Rs.500/- and maximum Rs. 5,000/).
- Swarna Express: 50% of fees are applied to Swarna Loans.
Formalities for Swarna Loan
- Swarna Loan application form.
- Jewel Appraiser’s Certificate (Bank will arrange).
- A salary certificate as well as Form No. 16 / evidence of income.
How to make your loan approval fast at Canara Bank Gold Loan?
• For obtaining a gold development, Canara Bank accepts both hallmarked and non-hallmarked ornaments. In any case, brand name embellishments will bring you the most elevated gold credit per gram, as it reduces the likelihood of the valuer undervaluing your item. Furthermore, certain banks offer reduced preparation fees for hallmarked gold diamonds.
• In exchange for gold perfection, Canara Bank changes the price of 22-carat gold.
• Canara Bank will calculate the percentage of advance against the gold you can acquire based on the net heap of diamonds. Attempt to select embellishments with the fewest diamonds and stones on a regular basis. The weight of pearls and stones from a comprehensive heap of ornaments will be reduced by a large portion of the banks. Canara Bank will calculate the net weight based on his gold valuer’s report.
• Increase the weight and value of pearls and stones in embellishments to reduce the net weight and value of diamonds, resulting in a reduced proportion of jewel advance. Furthermore, if the gold used is less than 18-carat flawlessness, Canara Bank will not acknowledge gem diamonds.
• The Reserve Bank of India has given all banks including Canara Bank consent to charge a high LTV (if required) of up to 85% to process the portion of gold credit you may be eligible for.
Consider the following for Gold loan:
1. Canara Bank Instant Gold Loan: The loan amount ranges from Rs.5000 to Rs.20 lakh.
2. Gold Ornament: Only gold ornaments are eligible for the loan.
3. Loan Tenure: The Canara Gold Loan has a maximum term of ten years when it comes to taking out a gold loan.
4. Gold Value: The bank will provide you with a professional appraiser to assess the purity of your gold.
5. Safety and security: After determining the value of Gold, the experts place it in a sealed pouch, pack it, and safely deposit it in the bank’s vault. The process is performed with the client present. This totally makes sure that the applicant’s gold ornaments is kept safe and secure while in the possession tenure of the bank.
6. Approval time: The loan can be obtained in 30 minutes.
7. Foreclosure: Canara Bank may charge the borrower a nominal charge of up to 1% of the outstanding principle loan amount in the event of a Gold Loan pre-closure.
8. The Reserve bank of india regulates the LTV ratio for Gold Loan, which is 75 percent.
9. While many banks offer higher interest rates for shorter terms and lower interest rates for longer terms, Canara Bank does not. The gold loan mandate is the same for all customers. It can last up to ten years.
10. The Canara bank offers a Gold Loan with quite lower rate of interest if applied for agricultural purposes.
What kinds of gold can be used as collateral for a gold loan?
You must visit one of their branches to apply for the best Canara Bank gold loan. Contact the branch office, which will give you with an application form and walk you through the entire procedure. Following that, the gold appraiser will determine the worth of your gold, and the bank will inform you of the amount of the gold loan you can request for using this best and safe Canara Bank gold loan per gram rate. You can also donate gold, coins, jewelry, or a combination of these items. If you sell, this is a very safe loan to take out. Gold loans are a quick and simple technique to monetize gold and obtain large sums of money.
Anyone who owns gold, whether in the form of jewelry or gold coins, can apply for this type of best gold loan. Aside from banks and local jewelers, NBFCs have a long history of providing the best gold loans to retail customers. Most banks rely on NBFCs as their last-mile connection when it comes to delivering the best gold loans in rural and semi-urban areas.
Gold Loan Comparison
|Particulars||Canara Bank||HDFC Bank||State Bank of India|
|Loan Tenure||2 years||3 months to 24 months||3 months to 36 months|
|Gold Loan Amount||₹ 5000 to Rs.20 Lakh||₹ 25,000 to ₹ 50 Lakh||₹ 20,000 to ₹ 20 Lakh|
|Rate of Interest||7% per annum Ownwards||9.90% – 17.55%||7.50% – 7.50%|
|Processing Fees||Up to 1% of the loan amount, minimum Rs. 750||1.50% of the loan amount||0.50% of the loan amount, minimum Rs. 500|
|Foreclosure Charges||Up to 1%||Nil after 3 months||Nil|
Gold Loan Programs at Canara Bank
• Overdraft Facility: Because of the variable cash needs of self-employed people, this is the most popular option.
One might withdraw money according to his or her own needs using this service.
• Bullet Repayment: When it comes to Loan Against Gold repayment, this is the most common method for short-term loans.
The borrower is responsible for paying the Canara Bank Gold Loan Interest Rate for the duration of the loan.
This means that at the end of the loan term, the principal value must be settled.
• EMI Facility: Customers can choose from a variety of repayment options for their Loan Against Gold.
In this case, a predetermined amount is calculated, which the applicant must pay monthly in instalments.
A portion of the principal amount as well as the Canara Gold Loan Interest Rate are included in this figure.
Factors that influence the interest rate and amount offered on gold loans.
Canara Bank’s interest rate and loan amount are influenced by the following factors. These are the factors:
- Loan Amount – The amount of gold loan you want has a direct impact on the interest rate you are offered. As a result, bigger loan amounts are associated with higher interest rates.
- Purity and Number of Gold items – The purity and quantity of gold items you have decide or the loan amount you are granted.
- The bank appoints an appraiser to determine the purity and quantity of the gold objects.The bank will increase the loan amount based on the appraiser’s decision.
- Canara Banks requires proof of income from its customers. They utilize it to assess the applicant’s ability to repay the loan, which has an impact on the interest rate and loan amount.
- Bank Lending Rates – The MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR (Marginal Cost of Fund Based Lending Rate) is another aspect that influences the interest rate you are offered (Repo Rate Linked Lending Rate). The RBI’s regulation has less of an impact on banks that offer loans based on MCLR rates than on RRLLR rates. Canara Bank provides loans based on the RRLR rate.
Swarna Loan – Canara Bank
• Less Documentation — Canara Bank has minimized the amount of paperwork required for this loan, making it hassle-free and simple to obtain.
• Flexible repayment – The loan could be repaid in as little as a year, with interest only due at maturity.
• Multipurpose Loan – With specific criteria, this loan can be utilized to address any financial need.
• Competitive Interest Rates – The Swarna Loan has a competitive interest rate, making it financially feasible for everyone.
• Cheap processing fee – This scheme charges a very low processing price.
• Security/Guarantor – There is no requirement for the applicant to present a guarantor.
• Maximum loan amount – Under this scheme, loan amounts can vary from Rs 10,000 to Rs 10,00,000 lakh.
Canara Bank Swarna Loan eligibility requirements.
- Income — Applicants should be salaried or self-employed and have a steady source of income.
- Account Holders – Applicants for the loan must have an existing Canara Bank Savings Bank account.Those who do not have an account must be introduced by others who have an account.
Documents needed for a Canara Bank Swarna Loan
- Passport, PAN card, DL, and other forms of identification and proof of address
- Application form – Completed and signed application form with valid information.
- Form 16 or Salary Slips from the employer as proof of income.
- Gold certificate – A certificate from the jeweler stating the gold quality is necessary.
Swarna Loan Fees and Charges.
Processing Fee: 1% of the loan amount, with a minimum of Rs. 1000 and a maximum of Rs. 5000.
Fees for appraisals vary depending on the scenario.
Canara Bank gold loan-Apply it Online
The following is the procedure for applying for a Canara Bank gold loan online:
• Go to the Canara Bank website and fill out a user-friendly form for a gold loan with all of the relevant information.
•Choose the best loan for you and apply for it right away.
How Do You Pay Your EMI On A Canara Bank Gold Loan?
The following three options are available for repaying your Canara Bank gold advance.
1. Standing Instruction (SI): for current Canara Bank account holders.
2. Electronic Clearing Service (ECS): for non-Canara Bank borrowers.
3. Post-Dated Checks (PDC): Post-dated cheques can be sent from a bank account other than Canara Bank.
Contact Number for the Canara Bank Gold Loan.
You can reach at 9878981144 if you require any assistance with the Canara Bank gold loan.
Canara Bank Gold Loan Accepts Gold Ornaments
Canara Bank accepts only gold of 18 and 22 carats as security and only gold jewelry as collateral. Coins that have been minted are not available.
Use of a Canara Bank Gold loan.
- Quicker processing — Gold loans are considered secured loans, so they are processed more quickly.
- As a result, they don’t have any difficult acceptability standards, terms, or documents, making it one of the fastest-processing loans.
- Lower interest rate – Unlike unsecured loans like personal loans, gold loans are secured loans that require a more fair interest rate on the loan amount.
- Versatility – The loan amount can be utilized for a variety of purposes, like funding a vacation, covering wedding expenses, and paying off medical bills, among others.
- Business Purpose- You can use the Canara Bank gold loan for any of your shopping needs, such as purchasing raw materials, increasing sales, and so on.
- Agricultural Purpose- Get a premium interest rate on gold loans if you keep cultivating your land.
Agricultural Gold Loan offer.
The Agricultural Jewel Loan Scheme is a loan program for farmers. Interest rates start at 7% per year and go up from there (depends on the sum of the loan)
The smallest loan amount is:
It depends on the worth of the jewel being retained as a security deposit.
Term of the loan
Adjustment of the advance money within two months of the date of harvest.
Canara Bank’s Agricultural Gold Loan Scheme has a number of advantages.
• Up to a value of 25,000, no arranging fees are required.
• 0.30 percent of the total loan amount; a minimum of Rs.300 fee is material to the total going from 25,000 to 5 lakh.
• 0.28 percent of the total credit amount, up to a maximum of Rs.1,500, is applicable to amounts greater than Rs.5 lakh but less than Rs.1 crore.
Overdraft Scheme for Canara Bank Swarna Loan
The charge is not paid in the same way as a traditional loan, and you can choose between secured and unsecured ODs, based on your preferences and eligibility. Canara Bank Bank’s Overdraft Center is straightforward and straightforward. An overdraft of up to Rs. 15 lakh may be granted.
Canara Bank Gold Loan – The Bank FAQ’s
Is it possible to receive a gold loan secured by gold coins?
Yes, gold loans can be taken out against gold coins sold by banks under the Swarna gold loan scheme.
However, each consumer is limited to a maximum of 50 grams.
Is there any other security I need to get a gold loan?
The only security required to obtain a gold loan is the gold you commit to the bank.
How long does it take for a gold loan application to be processed?
Following the evaluation of your gold jewellery, you may expect the gold loan to be disbursed within one or two working days.
Does Canara Bank need a co-applicant for gold loan?
For gold loans, Canara Bank does not require a co-applicant.
Is there a gold loan available from Canara Bank for agriculture?
Agriculture Canara Bank Gold loan is not a different scheme offered by the bank. Canara Bank Gold Loan, on the other hand, might be used to suit your agricultural needs.
What is the cheapest EMI per lakh rupees?
Canara Bank’s Gold Loan has the lowest monthly instalment at Rs. 8,683. The account will be open for 12 months and the APR will be 7.65%.
Is it possible to apply for the loan online?
Yes, you may apply for a gold loan through Canara Bank’s official website portal. Alternatively, you can go to your nearest bank and submit the loan application form together with the required papers.
What is the Loan-to-Value Ratio (LVR)?
The LTV (Loan to Value Ratio) is the amount of money that can be borrowed based on the asset’s market value. The relevant LTV for Swarna Loan is 75 percent of the gold’s market value. During the Covid epidemic, however, the bank may even give a loan-to-value ratio of up to 85% to 90%.
What Effect Does the Per Gram Rate Have on the Loan Amount?
For gold of better purity, the bank offers a higher per gram rate.
A 22-carat gold asset, for example, will have a higher value (per gram rate) than an 18-carat gold asset.
As a result, if you promise more pure jewelry, the loan amount will be higher, and vice versa.
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