Canara Bank Gold Loan: A gold loan is a secured loan in which a person borrows money from a lender, such as a bank or financial institution, by pledging gold jewelry, coins, or other gold assets as collateral.
The loan’s value is determined based on the appraised value of the gold pledged.
Canara Bank provides a gold loan facility to its customers. Being a secured loan, the interest rate and processing fees are low. If you need money to meet your financial needs, you can avail of the Canara Bank Gold Loan at a low-interest rate and processing fees.
Here, the complete process of taking a gold loan from Canara Bank is explained, so to know the whole process, you must read it till the end.
Canara Bank Gold Loan Details
| Canara Bank Gold Loan Interest Rate | Canara Bank Gold Loan Interest Rate starting from 7.25% per annum. |
| Processing fees | 0.5% of the loan amount. |
| Tenure Time | Up to 2 years |
| Loan Amount | Up to ₹35 Lakhs |
| LTV (Loan-to-Value) | 70% of the Appraised Value of Gold |
| Canara Bank Gold Loan Rate Per Gram | Rate Per Gram Today is Rs 4260 (22 Carat) |
Importance of Canara Bank in the financial sector
Canara Bank is a leading public sector bank in India, providing a wide range of banking and financial services to various customers. It has an extreme network of branches and ATMs across the country, promoting financial inclusion in urban and rural areas.
The Bank also implements government schemes and programs for socio-economic development and meets the people’s financial needs through a variety of loan services under various schemes.
Features of Canara Bank Gold Loan
Canara Bank offers various types of offers to attract customers taking gold loans, which benefits both the bank and the customer. Here we are told about some features and benefits.
Loan Amount: Canara Bank offers its customers a loan of ₹35 lakh under the Gold Loan Scheme. Any customer who wants a loan can apply for a loan against gold. The amount received as a loan is determined based on the purity of the customer’s gold and the current market price.
Interest Rate: In terms of interest rate, a gold loan is considered a very cheap loan because the interest rate charged on the gold loan is much lower as compared to other existing loan types. Canara Bank charges a minimum interest rate of 7.25% per annum. There are many factors that banks take into account while determining the interest rate, such as income source, credit history, age, etc.
Tenure: The bank gives the borrower 2 years to repay the loan amount. If you take a loan of a small loan, then you can choose less time for it, but the maximum time you get is only 2 years.
LTV (Loan-to-Value): Loan-to-value means how much gold loan you will get as per the value of your gold. You can get 70% of the value of your gold as a loan from the bank.
No CIBIL Score Required: No CIBIL score required: A Gold loan is a secured loan that you take from the bank by pledging your gold, so there is no need for a CIBIL score while taking a gold loan. After repaying the gold loan, your CIBIL score increases.
Instant Approval: The process of taking a gold loan is quite fast; It is processed by the bank within a single day and provided to the customers. It is easy and cheap to get this loan for those who need money in an emergency.
Minimum Documents: The customer does not require many documents to take this loan. The loan can be easily availed with some basic documents like Aadhar Card, PAN Card, etc.
Canara Bank Gold Loan Rate Per Gram
Canara Bank offers various gold loan schemes to meet the needs of different customers. A gold loan is a loan that is secured by pledging gold jewelry as collateral. The bank accepts and appraises gold items of varying purity and weight and provides loans based on their value.
| Weight | Loan on 22 Carat Gold | Loan on 20 Carat Gold | Loan on 18 Carat Gold |
| 1 gram | 4260 | 3870 | 3484 |
| 10 grams | 42600 | 38700 | 34500 |
| 20 grams | 85200 | 77400 | 69680 |
| 30 grams | 127800 | 116100 | 104520 |
| 40 grams | 170400 | 154800 | 139360 |
| 50 grams | 213000 | 193500 | 174200 |
| 100 grams | 426000 | 387000 | 348400 |
Canara Bank Gold Loan Rate Per Gram – HDFC, SBI, Muthoot Finance, ICICI Bank, Manappuram, IIFL & Rupeek Gold Loan
There are many banks and NBFCs in India that give loans against gold. All banks and NBFCs charge interest rates according to their customers. Here we have given information about some banks and NBFCs that provide you with gold loans per gram.
| Bank/NBFC | Gold Loan Per Gram Rate | Interest Rate (per annum) | Min-Max Loan Amount |
| HDFC Gold Loan | Rs 3484 to Rs 4260 | 9.90% | Rs 10000 to 5 Crore |
| SBI Gold Loan | Rs 3484 to Rs 4260 | 9.75% | Rs 20000 to 50 lakhs |
| Muthoot Finance Gold Loan | Rs 3484 to Rs 4260 | 12.00% | Rs 1500 to 5 Crore |
| ICIC Gold Loan | Rs 3484 to Rs 4260 | 10.00% | Rs 50000 to 1 Crore |
| Manappuram Gold Loan | Rs 3484 to Rs 4260 | 12.25% | Rs 3000 to 1 Crore |
| IIFL Gold Loan | Rs 3484 to Rs 4260 | 12.00% | Rs 3000 to 50 Lakhs |
| Rupeek Gold Loan | Rs 3484 to Rs 4260 | 8.88% | Higher value for your Gold |
Eligibility Criteria for Canara Bank Gold Loan Rate Per Gram
To access the benefits of the Canara Bank Gold Loan, you fulfill some simple eligibility criteria. These norms ensure the loan process is streamlined and you and the lender are protected. Here are the eligibility requirements:
- The age of the applicant must be 21 years or above.
- The applicant must be a citizen of India.
- A salaried and self-employed person can easily apply for a gold loan.
Documentation Required for Canara Bank Gold Loan
- Identity Proof: Driving License, PAN Card, Form 60/61, Passport Copy, Voter ID Card, Aadhar Card, Ration Card.
- Address Proof: Driving License, Voter ID Card, Ration Card, Aadhaar Card, Passport Copy, Registered Lease Agreement along with a utility bill not more than 3 months old in the name of the landlord (any), in case of agriculture loan above Proof of land holding ‘1 lakh’.
- Ownership of Gold: You need to be the rightful owner of the gold you intend to pledge as collateral. This requirement prevents any disputes over ownership during the loan tenure.
- Purity and Weight: The gold you’re pledging should meet certain purity and weight standards. The bank will appraise your gold to determine its value, and this evaluation is based on factors like purity, weight, and current market rates.
- Passport-sized Photographs: Recent passport-size photographs that comply with the specifications provided by Canara Bank.
How to apply for a Canara Bank Gold Loan?
Canara Bank Gold Loan allows you to borrow money by pledging your gold jewelry, coins, or jewelry as collateral. You can use this loan for various purposes, like meeting personal or business expenses, education, medical emergencies, etc.
To apply for Canara Bank Gold Loan, you need to follow these steps:
- Visit the nearest Canara Bank branch.
- Get your gold jewelry appraised by a bank appraiser.
- You will fill out a loan application form. Provide accurate information in your application form.
- The loan amount you will get will generally be 70% percentage of the value of the gold. Canara Bank will inform you about the loan amount, rate of interest, and other terms and conditions attached to the loan.
- If you agree to the terms and conditions presented, you will need to sign the loan agreement.
- Once you complete the necessary formalities, the loan amount will be disbursed to you. This will be done via cash, check, or electronic transfer to your bank account.
Conclusion: Here we have told you about the Canara Bank Gold Loan, if you need money urgently, you can apply for a Gold Loan.
The most important thing about a gold loan is that you get it in just one day, and it does not require any CIBIL score. In terms of interest rate, gold loans are cheaper than other existing loan schemes.
The amount received as a loan is decided according to the purity and value of your gold. Canara Bank gives loans to its customers up to 70% of the value of gold.
If you apply for a gold loan, apply only after understanding the terms and conditions. In case of non-payment of the loan amount, your gold may also be auctioned.
FAQs Related to Canara Bank Gold Loan Interest Rate
What is the gold loan per gram in Canara Bank?
The Canara Bank gold loan rate per gram depends on the purity of the gold and the scheme chosen by the borrower. Canara Bank offers gold loan schemes at various interest rates and loan-to-value (LTV) ratios. LTV ratio rate is the 70% percentage of the total value of gold that can be given as a loan amount. You can avail up to Rs 4,260 per gram (22 carat) in Canara Bank Gold Loan.
What is the interest of 1 lakh in the Canara Bank gold loan?
Canara Bank charges a minimum interest rate of 7.25% per annum. There are many factors that banks take into account while determining the interest rate, such as income source, credit history, age, etc. You can get a 1 lakh gold loan from Canara Bank at an interest rate of 7.25% per annum for a 2-year tenure.
What is the Canara Bank Gold Loan Scheme?
Under the Canara Bank Gold Loan Scheme, you can get a loan of up to ₹35 lakh at the lowest interest rate starting from 7.25% per annum, and the customer gets 2 years to repay the loan amount. A processing fee of 0.50% is also charged on the loan amount availed.
Can individuals without an SB account in Canara Bank avail of this loan?
No, to avail of this loan, customers must open their savings account in Canara Bank, and only then apply for the loan.
