Canara Bank Gold Loan Interest Rate 2024: Processing Fee, Documents Required, Eligibility, How to Apply

One of the popular banks in India, Canara Bank, has a number of facilities and products to offer for its customers, irrespective of new or existing ones. One such popular product offered to Indian citizens by the bank is a Gold loan. There are three prominent gold loan schemes, namely Swarna Loan, Swarna Express and Swarna Overdraft, that are available in the bank. You can avail of any of them and enjoy their competitive interest rates and other benefits. 

Keep reading to know more about Canara Bank gold loan interest rates, processing fees, documents and eligibility. 

Canara Bank Gold Loan Interest Rate 2024

The table below presents you the Canara Bank gold loan interest rates 2024 for different schemes:

Canara Bank Gold Loan Rate per Gram

Canara Bank gold loan rate per gram is Rs. 3,725 to Rs. 4,000. This value is subject to change as per price fluctuation of gold per day basis. 

Canara Bank Agriculture Gold Loan Interest Rate

The Canara Bank agriculture gold loan interest rate for 2024 is 9.25% per annum. 

Canara Bank Gold Loan Eligibility Criteria

Individuals fulfilling the following conditions are eligible to avail of loans with Canara Bank gold loan interest rates:

• You must be an Indian citizen.
• You must have a good credit score and credit history to prove your credibility.
• As a borrower, you must be over 18 years old.

Canara Bank Gold Loan Procedure

The application procedure for the Canara Bank gold loan is quite similar to the application processes for other secured loans. 

To avail of a gold loan, you are required to submit the application form to the lender along with the gold assets that you are planning to pledge as collateral. Following this, bank authorities will examine the gold and verify your application with your documents. After verifying your authenticity and credibility, Canara Bank will sanction your loan amount, which will be disbursed into your account soon. 

Here are a few initial steps to follow for applying for a Canara Bank gold loan:

Step 1: Visit the Canara Bank branch. 

Step 2: Ask the representatives for a gold loan application form.

Step 3: Fill in the application form and submit it with the required documents.

Once done, the bank officials will process your application.

Documents Required For Canara Bank Gold Loan

You need to provide a few documents along with Canara Bank gold loan application:

• KYC documnets like latest salary slip, bank statement, etc.
• Jewel appraiser’s statement. Canara Bank will assign an appraiser for your gold. 
• Form 16 or salary certificate as proof of income.

Canara Bank Gold Loan Processing Fee

For every gold loan application, a processing fee is charged against it. The processing charges for the Canara Bank Gold Loan depends on the loan scheme, which are as follows:

Canara Bank Gold Loan Appraiser Charges

Appraiser charges against gold loans are the payments done to lenders for analysing the worth of pledged gold. It is important to understand that the appraiser charges for Canara Bank Gold loan might vary among individuals based on their holdings. 

Canara Bank Gold Loan Maximum Limit

The maximum limit for each borrower availing of Canara Bank gold loan is Rs. 35 lakh. 

How to Close Gold Loans in Canara Bank?

To close the Canara Bank gold loan, you must repay your debt completely within a year of loan sanction. 

To complete the repayment process, you can opt for the Bullet Repayment Method. With this method, you must repay your debt within 12 months of sanction and only need to pay the interest amount and principal components of your outstanding amount. 

Furthermore, the principal amount will be more than interest, which will be calculated every month. As stated earlier, you must clear your outstanding amount at the end of the tenure. Therefore, you can choose a tenure suitable for your needs. This can help lower the burden on your finances and maintain financial discipline. 

How to Calculate Gold Loan Interest in Canara Bank?

The following formula will help you calculate interest on gold loans.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here, 

P= Loan Amount

R= Rate of interest per month

N= Loan tenure in months

Let’s consider a simple example to understand the workings of gold loan interest calculations using the formula above. 

For instance, Manoj avails a gold loan for Rs. 50,000 by pledging 11.63 grams at 9.24% interest for a tenure of 1 year. Now, let's see how much interest he needs to pay throughout his loan tenure. 

Placing the values as per the formula above we get, 

EMI= [50,000 x 0.77 x (1+0.77)^12]/[(1+0.77)^12-1]

EMI= Rs. 4620

Canara Bank Gold Loan Interest Rate Calculator

As you can see, manual calculations using the formula above can be time-consuming and might not always provide accurate results. To save time and effort, you can use the online Canara Bank Gold Loan calculator to know your monthly EMI. 

This is a free online tool wherein you can enter your loan amount, interest rate and tenure or amount of gold you are placing as collateral. With these details, the calculator will instantly display your monthly EMI. 

Canara Bank Gold Loan Contact Number

For any assistance regarding the application of a gold loan from Canara Bank, you can connect with the bank’s representative over call. The contact number for Canara Bank is 1800 1030, 080-22115526 or 080-22221581. 

To conclude, before availing a gold loan, consider computing your EMI to have a clear idea of your finances. Furthermore, for any assistance regarding the Canara Bank gold loan interest rate, you can connect with the bank representative instantly with the phone number mentioned above. 

Canara Bank Related Articles:
1. Canara Bank Locker Charges
2. Canara Bank Net Banking
3. Canara Bank Savings Account Interest Rate
4. Canara Bank Gold Loan Interest Rate

Other Banks Gold Loan Interest Rates:
1. ICICI Bank Gold Loan Interest Rate
2. HDFC Gold Loan Interest Rate 
3. Bank of Baroda (BOB) Gold Loan Interest Rate
4. SBI Gold Loan Interest Rate 
5. Canara Bank Gold Loan Interest Rate
6. Axis Bank Gold Loan Interest Rate
7. Central Bank Gold Loan Interest Rate
8. PNB Gold Loan Interest Rate
9. Union Bank Gold Loan Interest Rate
10. Indian Overseas Bank (IOB) Gold Loan Interest Rate
11. Gold Loan Interest Rates 
12. Bank of India (BOI) Gold Loan Interest Rate