Get Up To 35 lakhs Under Canara Bank Gold Loan

Gold loans are a convenient way to access funds quickly by using your gold ornaments as security. Canara Bank Gold Loan comes with three schemes: Swarna Loan, Swarna Express, and Swarna Overdraft. In this blog post, we’ll discuss only the Canara Bank Swarna Loan Scheme, its features, eligibility, and application process in detail.

Whether you’re funding your child’s education, managing medical expenses, or addressing unforeseen contingencies, the Canara Bank Gold Loan provides a quick and hassle-free solution.

Key Features of Canara Bank Gold Loan

Canara Bank’s gold loan offers a competitive edge with its attractive features:

1. Swarna Loan Purpose: The Swarna Loan is designed to help borrowers access the funds they need by pledging their gold jewelry or specially minted gold coins. It serves various financial needs, such as weddings, overseas travel, higher education expenses, and debt consolidation.

2. Loan amount: The maximum loan amount you can get under the Swarna Loan is Rs. 35 lakh. However, the loan amount is determined based on the appraised value of your gold. Specifically, you can borrow up to 65% of the appraised value of your gold.

3. Interest Rates: Canara Bank offers competitive interest rates starting from 9.25% per annum (subject to change). Your gold should have a purity level between 18 carats and 22 carats to qualify for this loan.

4. Security: To secure the loan, you need to pledge your gold ornaments or jewelry. Additionally, you can use specially minted gold coins sold by banks (up to 50 grams per customer) as collateral.

5. Repayment: The Swarna Loan is typically repaid within 12 months from the date of sanction. Repayment is made as a bullet payment, which means you pay back the entire loan amount along with interest at once.

6. Processing Fee: A nominal processing fee of 0.5% of the loan amount (subject to a minimum of Rs. 500) is charged

7. Quick Processing: Once the gold is valued and documents are verified, the loan amount is quickly disbursed, ensuring you get the funds when needed.

Canara Bank Gold Loan Highlight

Canara Bank Gold Loan Eligibility Criteria

To be eligible for a Canara Bank Gold Loan, you need to meet the following criteria:

1. Indian Citizenship: You must be an Indian citizen.
2. Age Requirement: You should be at least 18 years old.
3. Gold Assets: You must possess gold ornaments or coins to pledge as collateral.
4. Minimum Purity: The gold you pledge must have a minimum purity of 18 carats.

Also read, Canara Bank Atal Pension Yojana

How to apply for Canara Bank Gold Loan

Applying for a Canara Bank Gold Loan involves a straightforward process. Here are the steps in detail:

Visit the Canara Bank Branch

• Locate your nearest Canara Bank branch.
• Visit the branch in person to initiate the loan application process.

Request the Gold Loan Application Form

• Approach the bank representatives and express your interest in the Swarna Loan (Gold Loan).
• Ask for the gold loan application form.

Fill Out the Application Form

• Complete the application form with accurate details.
• Provide information about yourself, the gold you intend to pledge, and the required loan amount.

Submit Required Documents

Along with the application form, submit the necessary documents:

• Identity Proof (such as Aadhaar card, passport, or voter ID).
• Address Proof (utility bills, rental agreement, etc.).
• Ownership proof of the gold (bill of purchase, receipt, etc.).

Gold Appraisal

• The bank’s appointed appraiser will assess the value of your gold.
• The loan amount will be determined based on the appraised value.

Loan Sanction

• Once the appraisal is complete, the bank will sanction the loan amount.
• You’ll receive an approval letter specifying the loan terms.

Pledge Your Gold

• Pledge your gold ornaments or jewelry as collateral.
• The pledged gold remains with the bank as security during the loan tenure.

Disbursement of Funds

• The loan amount will be credited to your bank account promptly.
• You can use the funds for your intended purpose.

Nomination Facility

• You can nominate a family member to receive the pledged gold in case of unforeseen circumstances.

Remember to inquire about any additional terms, interest rates, and repayment details specific to the Swarna Loan. Canara Bank officials will guide you through the process and provide further information.

For more details, visit Canara Bank’s official website.

Frequently Asked Questions (FAQs)