Canara Bank Gold Loan per Gram Rate in 2024
Canara Bank Gold Loan Interest Rates
Canara Bank offers a gold loan scheme, popularly referred to as the Swarna Loan. This loan provides financial assistance by leveraging the value of your gold assets. With attractive features such as competitive interest rates and minimal processing charges, the scheme provides you with accessibility and convenience. Let’s learn all the details about this loan.
Canara Bank Gold Loan Details
The gold loan from Canara Bank is relatively lower compared to unsecured loans. This rate ensures affordability and makes it a viable option for you if you are seeking funds against gold assets:
- Canara Bank gold loan interest rate: 9.25%
- Loan amount: Rs. 5,000 - Rs. 35,00,000
- Age limit: From 18 years
- Tenure: 1 year
Features of Canara Bank Gold Loan Schemes
- Quick processing: Minimal documentation ensures a hassle-free application process. This allows you to access funds quickly.
- Affordable interest rates: Offers competitive rates to make the loan affordable and reduce financial burden.
- Multipurpose interest rates: You can use the loan for various needs, such as medical expenses, education, or business, subject to bank guidelines.
- Flexible loan amount: You can avail loan amounts ranging from Rs. 5 thousand to Rs. 35 lakh based on the gold’s value.
- Low processing fee: The processing fee is nominal, making the loan accessible to a wide range of customers.
- Flexible repayment option: The loan can be repaid within one year, and the interest is payable at maturity.
- No guarantor required: Simplifies the process by eliminating the need for a guarantor.
Canara Bank Gold Loan Rate Per Gram
Canara Bank gold loan interest rate per gram is Rs. 3,725 to Rs. 4,000. This rate changes with the fluctuation of the value of gold.
Canara Gold Loan Interest Rate
This bank provides competitive interest rates on its three types of gold loans:
- Swarna Loan: 9.25%
- Swarna Express: 9.25%
- Sharna Overdraft: 9.25%
Apart from this, you have to pay Canara Bank gold loan appraiser charges (payment done to lenders for analysing the worth of the pledged gold). This value differs among individuals based on their gold assets.
How to Calculate Gold Loan Interest in Canara Bank?
To calculate the interest rate on your Canara Bank gold loan EMI (equated monthly instalment), you can use the following formula:
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)
For example, let’s say you take a gold loan of Rs. 60,000 at an annual interest rate of 9.25% for a tenure of 1 year. Using the formula:
P = Rs. 60,000
R = 0.7708%
N = 12 months
The EMI can be calculated as approximately Rs. 5,245. This formula helps you estimate the monthly repayment and plan finances effectively.
Canara Bank Gold Loan Eligibility
To avail of the Canara Bank gold loan, you must meet the following criteria:
- Indian residents aged 18 or above with a steady income source.
- Existing Canara Bank account holders are eligible.
- New customers can also apply but must provide proof of creditworthiness.
Documents Required for Canara Bank Gold Loan
Applicants need to submit the following documents:
- Loan application form: Filled and signed.
- KYC documents: Includes Aadhaar, PAN, Voter ID, or Passport.
- Proof of income: Latest salary slip, form 16, or recent bank statement.
- Gold appraisal certificate: Arranged by Canara Bank to assess the gold’s value.
Processing Charges of Canara Bank Gold Loan Scheme
Canara Bank gold loan processing fee is reasonable and as follows:
- Swarna loan: 0.5% of the loan amount. Minimum Rs. 500 and maximum Rs. 5,000.
- Swarna Express: Processing charges are discounted by 50%.
- Swarna Overdraft: 0.5% of the loan amount, with the same minimum and maximum limits as the Swarna loan.
Canara Bank Interest Rate Compared to Other Lenders
The gold loan interest rates from Canara Bank start at 9.25%, making it one of the most competitive rates in the market. Compared to other banks:
| Bank | Interest rates | | :---- | :---- | | Axis bank | 9.35% onwards | | HDFC bank | 9.30 onwards | | Muthoot Fincorp | 11.99% onwards |
How to Apply for Canara Bank Gold Loan Schemes
To apply for the loan, follow these steps:
- Visit the nearest Canara Bank branch.
- Consult a bank representative who will guide you through the application process.
- The bank will arrange for a certified appraiser to evaluate your gold items.
- Based on the appraisal, the maximum loan amount will be determined.
- Upon approval, the loan amount will be disbursed promptly.
How to Pay Canara Bank Loan?
Canara Bank offers a convenient Bullet Repayment Method for gold loan repayment:
- You can repay the entire principal and accumulated interest at the end of the loan tenure (up to 12 months).
- Interest is calculated monthly and added to the principal amount.
- Customers can choose the loan tenure based on their repayment capacity, ensuring flexibility.
This repayment method provides financial ease, as you are not required to make monthly payments.
How to Close Canara Bank Gold Loans?
Closing your Canara Bank gold loan involves completing the repayment of the outstanding amount within the agreed tenure. The process is simple and borrower-friendly:
- Opt for the Bullet Repayment Method, where the entire principal and interest amount is paid at the end of the tenure, typically within 12 months.
- Interest is calculated monthly and added to the principal amount. This makes it essential to plan repayment carefully to avoid financial strain.
- Choosing a tenure that aligns with your repayment capacity can ease the process and maintain your financial health.
This flexible repayment structure is designed to accommodate your convenience and financial needs.
Canara Bank Gold Loan Contact Number
For any queries or assistance regarding Canara Bank gold loans, you can contact their customer support team through the following numbers:
- Toll-free number: 18001030
- Other contact numbers: 080-22115526 / 080-22221581
The bank’s representatives are available to guide you through the loan application process, answer questions about the loan, and resolve any concerns.
Conclusion
A gold loan from Canara Bank is a reliable and accessible financial solution for various needs. With competitive interest rates, flexible repayment options, and prompt customer support, it ensures you can achieve your financial goals without unnecessary hassle.
