Lending on the security of Gold Jewellery is one of the most secured and quickest ways of financing. Credit facility against security of Gold Coins/Gold Ornaments and Jewellery is available for purposes of a) Agricultural and Agricultural Allied Activities b) Personal needs c) Business Activities.
Loans against pledge of Gold Jewellery to Agriculturists for crop cultivation as well as other Agricultural purposes like farm development, working capital for allied activities, etc. are popular among farmers, as such loans can be availed with great convenience with least turnaround time.
Further, to cater the personal needs, Swarna Loan schemes are available under retail segment through Canara Bank Gold Loan. Canara MSME Gold schemes are offered to provide hassle-free loans to MSME units.
Loan Amount For Canara Bank Gold Loan
Rs 5000 – Rs 35 Lakh
Canara Bank Gold Loan Rate
Canara Bank Gold Loan per gram rate of Today is ₹ 3,760 to ₹ 5,100 at 8.90% to 9.25%.
| Schemes | Lending Rate per gram | Interest Rate p.a. |
| Agriculture Gold Loan | Rs. 4630/- | 8.90 % |
| Agriculture Gold OD | Rs. 5100/- | 8.90 % |
| Swarna Loan | Rs. 3760/- | 9.25 % |
| Swarna OD | Rs. 4050/- | 9.25 % |
| Swarna Express | Rs. 4050- | 9.25 % |
| MSME Gold loan | Rs. 3760/- | – |
| MSME Gold OD | Rs. 4050/- | – |
Security
- Against the pledge of gold ornaments / Jewellery.
- Loan shall be against Ornaments, specially minted Gold Coins sold by Banks and not against Gold Coin, Bullion etc.
- Total weight of Specially minted Gold Coins (sold by the Banks) shall not exceed 50 grams per customer.
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Canara Agriculture Gold Loan
- for Crop Cultivation
- for Land Development Activities: like levelling, construction of bunds, water shed, fencing, trenching, farm pond, irrigation channel repair & maintenance etc.
- for Allied Activities: to meet the expenses of Fisheries, Animal Husbandry, Poultry, Beekeeping, Sericulture etc.
For Canara Bank Gold Loan above Rs. 3,00,000/-, Customer to give all land records like RTC / Khatha Extract / Khatha pass book while assessing crop production requirements.
Rate of Advance
Rate of advance shall be maximum 80% of the appraised value of gold for Canara Bank Gold Loan.
Repayment
- Loans for Crop Cultivation & Land Development Activities: The entire Canara Bank Gold loan should be cleared within a maximum period of 12 months from the date of sanction in monthly/ quarterly/ half-yearly instalments or by lump sum payment.
- Loans for Allied Activities: The entire loan should be cleared within a maximum period of 12 months from the date of sanction, in monthly instalments.
Canara Agriculture Gold Loan Overdraft Facility (GL-OD):
Amount of Finance
The minimum loan amount is Rs. 1.60 lakh. However, for crop cultivation, the quantum shall be restricted to Rs. 10.00 lakh per customer.
Rate of Advance & Tenability
Rate of Advance shall be maximum 90% of the Appraised Value of Gold. The tenability of the limit will be for a period of three years.
Facilities
- Multiple transactions within the limit are allowed.
- Cheque book facility and ATM card facility shall be extended to the borrowers.
- Net Banking/ Mobile banking facility shall be provided.
Canara Swarna Loan
Purpose
To meet the Medical and other unforeseen expenses/ investment/ domestic expenses.
Nature of Credit Facility
Single Transaction Limit (STL) / Revolving Credit facility (OD)
Rate of Advance
Rate of advance shall be maximum 70% of the appraised value of gold for Single Transaction Limit and 75% of the appraised value of gold for Swarna OD.
Repayment Period
Swarna (Single Transaction Limit):
The entire loan shall be repaid within 12 months from the date of sanction as a bullet payment along with interest. Interest will be accrued to the account at monthly rests compounded, but will become due for payment along with principal only at maturity.
Swarna Express (Single Transaction Limit):
The entire loan shall be repaid within 6 months from the date of sanction as a bullet payment along with interest. Interest will be accrued to the account at monthly rests compounded, but will become due for payment along with principal only at maturity.
Overdraft
2 Years. Interest is to be serviced monthly.
Canara MSME Gold Loan
Purpose
To provide hassle-free financial assistance to MSME units against Gold Ornaments/ Jewellery held in the name of Individual/ Proprietor respectively, for fund based requirements for general business purpose & augment working capital, acquiring machinery/ equipment/ tools for repair, renovations etc.
Schemes
Canara MSME Gold- Demand Loan – Single Transaction Limit Facility
Canara MSME Gold- Overdraft – Revolving Credit facility
Amount of Finance
Minimum Amount: Rs. 50,000/-
Maximum Amount: Rs. 35.00 Lakh.
Eligibility
MSME Units (Individuals and Proprietorship Firm only), both borrowing and non-borrowing units of Canara Bank, who wish to avail loan against gold ornaments/ Jewellery. Unit/shop shall be with running activity and Customer should not have any account in NPA status.
Rate of Advance & Tenability
Canara MSME Gold- Demand Loan Scheme
Rate of Advance shall be 100% of value of asset proposed to be purchased for business purpose or 65% of the appraised value, whichever is less.
Canara MSME Gold – Overdraft Scheme
Rate of Advance shall be 20% of the Projected Turnover of the unit or 70% of the appraised value of Gold, whichever is less.
Nature of Credit Facility
Single Transaction Limit (STL) / Revolving Credit facility (OD)
Nomination Facility for Canara Bank Gold Loan
In order to releasing the gold ornaments to the nominees in the event of death of the borrowers at the earliest possible time, Nomination facility has been introduced for all Canara Bank Gold Loan Schemes. The said nomination facility is purely voluntary and is at discretion of the borrower.
The jewels pledged by the borrower can be returned to the designated nominee in the event of his/ her death on clearance of all dues standing in his/ her name and legal heirs will be bound by the terms of the contract executed by the deceased borrower.
FAQs
Q. What is Canara Bank Gold Loan interest rate?
Canara Bank Gold Loan interest rate is 8.70% – 9.60% p.a.
Q. What is Swarna Loan Scheme?
Swarna Loan is a loan granted against gold jewellery or specially minted coins sold by banks to meet the Medical and other unforeseen expenses/ investment/ domestic expenses.
Q. What are the documents required while applying for a gold loan?
Documents required for Canara Bank Gold Loan are:
- Identity Proof – Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License
- Address Proof – Aadhaar Card, Voter ID, Passport, Driving License, Utility Bill (Phone/ Gas/ Electricity)
- PAN Card
- Passport Size Photograph
Q. What is LTV Ratio in Gold Loan?
Loan-To-Value is the ratio of loan to the Appraised Value of the security. It is the maximum amount of loan that can be permitted per value of the security, expressed as percentage. The LTV ratio is maximum 75%, capped by the Reserve bank of India (RBI).
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