Canara Bank offers a Gold Loan (Swarna Loan) scheme 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)
Some of the unique features of Swarna Loan are highlighted below.
- 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 10,000 and Rs 10 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.
Canara Bank Gold Loan (Swarna Loan) Interest Rates
Interest rates charged by Canara Bank on its Gold Loan (Swarna Loan) are extremely competitive, making them an attractive option compared to other loan providers. The Base Rate determines the final rate charged, with it currently being 9.65% per annum. Borrowers under the Swarna Loan scheme need to pay an interest of 12.75% per annum (Base Rate + 3.10%) on their loan.
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.
Fees and charges associated with Canara Bank Swarna Loan
| Type of fee | Amount |
| Processing fee | 1% of loan amount, subject to:
Minimum – Rs 1,000 Maximum – Rs 5,000 |
| Appraisal fee | Ranges from case to case |