• Thu. May 23rd, 2024

Understanding the Spectrum of Canara Bank Loan Types: A Complete Overview

Byadmin

Apr 24, 2024
Gold Loan Advantage

182 Views

Gold Loans are secured loans that hold gold jewellery, coins, or bars as collateral to secure the loan. The borrower pledges the gold against the loan amount to the lender bank or an NBFC, i.e., a non-banking financial company. There are three prominent gold loan schemes offered by Canara Bank: Swarna Loan, Swarna Express Loan, and Swarna Overdraft. Any one of them can be availed at a competitive rate of interest. The repayment of the Canara Bank Gold loan can be made through the Bullet repayment method and the interest payment method.

Canara Bank Gold Loan – A Snapshot
Interest Rate Floating rates- 9.25% p.a.

Fixed rates- 10.35% p.a.

Loan Amount INR 5,000- INR 35 lakh
LTV Ratio Up to 70% of gold’s market value
Tenure Up to 2 years
Collateral/Security
  • Gold ornaments
  • Jewellery
  • Specially minted gold coins, i.e., gold struck into the shape of a coin or medal, are sold by banks in quantities of up to 50 gm per customer.
Processing Fee Up to 0.50% of the loan amount, i.e. maximum INR 5,000

Types of Gold Loans offered by Canara Bank

1. Swarna Express

Benefits:

  • To meet the expenses of allied activities
  • Lower Rate of Interest.
  • No Prepayment penalty.
  • Minimal processing charges.
  • Quick processing and disbursement.

Purpose:

  • To meet medical expenses and other unforeseen Commitments/ Contingencies, etc.

Features:

Nature of Facility

  • Single Transaction Limit

Loan Quantum

  • 70% of the Appraised Value of Gold.
  • Minimum Amount – INR 5000/-
  • Maximum amount – INR 35 Lakh.

Under three schemes, Swarna loan, Swarna OD, and Swarna Express, the ceiling is INR 35 Lakh per borrower.

Security

  • Pledge of Gold ornaments or Jewellery.
  • Pledge of Specially minted Gold coins sold by banks up to 50 grams per customer.

Repayment

  • The loan should be repaid via the bullet repayment method along with the interest within 6 months from the date of sanction.

Nomination Facility is available.

Eligibility

  • Resident Individuals
  • NRIs 

2. Swarna Overdraft

Benefits:

  • Loan to meet unforeseen contingencies.
  • Lower Rate of Interest.
  • No Prepayment penalty.
  • Minimal processing charges.
  • Multiple transactions within the limit allowed.
  • Quick processing and disbursement.

Purpose:

  • To meet the medical expenses and other unforeseen Commitments or Contingencies, etc.

Features:

Nature of Facility

  • Overdraft

Loan Quantum

  • 70% of the Appraised Value of Gold.
  • Minimum Amount – INR 5000/-
  • Maximum amount – INR 35 Lakh.

Under three schemes, Swarna loan, Swarna OD, and Swarna Express, the ceiling is INR 35 Lakh per borrower.

Security

  • Pledge of Gold ornaments or Jewellery.
  • Pledge of Specially minted Gold coins sold by banks up to 50 grams per customer.

Repayment

  • The revolving Credit Facility is tenable for 24 months and is subject to annual review.
  • Interest to be serviced as and when due at monthly intervals.

Nomination Facility is available.

Eligibility

  • Resident Individuals
  • NRIs 

3. Swarna Loans

Benefits:

  • Loan to meet unforeseen contingencies.
  • Lower Rate of Interest.
  • No Prepayment penalty.
  • Minimal processing charges.
  • Quick processing and disbursement.

Purpose:

  • To meet medical expenses and some other unforeseen contingencies or commitments, etc.

Features:

Nature of Facility

  • Single Transaction Limit

Loan Quantum

  • 65% of the Appraised Value of Gold.
  • Minimum Amount – INR 5000/-
  • Maximum amount – INR 35 Lakh per borrower

Under three schemes, Swarna loan, Swarna OD, and Swarna Express

Security

  • Pledge of Gold ornaments or Jewellery.
  • Pledge of Specially minted Gold coins sold by banks up to 50 grams per customer.

Repayment

  • The loan is to be repaid as a bullet payment along with interest within 12 months from the date of sanction.

Nomination Facility is available.

Eligibility

  • Resident Individuals
  • NRIs 

Canara MSME Gold Demand Loan

Benefits:

  • To meet the general business requirements.
  • Lower Rate of Interest.
  • No Prepayment penalty
  • Minimal processing charges
  • Quick processing and disbursement.

Purpose:

  • To provide financial assistance to MSME units for fund-based requirements for general business purposes & to augment working capital, acquiring machinery/ equipment/ tools for repairs, renovations, etc.

Features:

Nature of Facility

  • Single Transaction Limit

Loan Quantum

  • 65% of the Appraised Value of Gold.
  • Minimum Amount – INR. 50000/-
  • Maximum amount – INR 35 Lakh.
    Subject to a ceiling of INR 35 Lakh per Borrower under MSME Gold Loan schemes.

Security

  • Pledge of Gold ornaments or Jewellery.
  • Specially minted Gold coins that the banks sell up to 50 grams per customer.

Repayment tenure

  • The entire loan is to be repaid within 12 months.
  • Interest is to be serviced at monthly intervals.

Nomination Facility is available.

Eligibility

  • MSME Units (Individuals and Proprietorship Firms only), both borrowing & non-borrowing units of our Bank.
    Unit/ Shop shall be with running activity.

Canara MSME Gold Overdraft

Benefits:

  • To meet the general business requirements.
  • Lower Rate of Interest.
  • No Prepayment penalty
  • Minimal processing charges
  • Multiple transactions within the limit allowed.
  • Quick processing and disbursement.

Purpose:

  • To provide financial assistance to MSME units for fund-based requirements for general business purposes & to augment working capital, acquiring machinery/ equipment/ tools for repairs, renovations, etc.

Features:

Nature of Facility

  • Overdraft

Loan Quantum

  • 70% of the Appraised Value of Gold.
  • Minimum Amount – INR. 50000/-
  • Maximum amount – INR 35 Lakh.
    Subject to a ceiling of INR 35 Lakh per Borrower under MSME Gold Loan schemes.

Security

  • Pledge of Gold ornaments or jewellery.
  • Specially minted Gold coins that banks sell up to 50 grams per customer.

Repayment tenure

  • The entire loan is to be repaid within 12 months.
  • Interest is to be serviced at monthly intervals.

Nomination Facility is available.

Eligibility

  • MSME Units (Individuals and Proprietorship Firms only), both borrowing & non-borrowing units of our Bank.
    Unit/ Shop shall be with running activity.

Canara Bank Gold Loan Interest Rates

Mentioned below are the Canara Bank Gold Loan Interest Rate:

Floating Interest Rates

Products Interest Rate (p.a.)
Swarna Loan 9.25%
Swarna Overdraft 9.25%
Swarna Express 9.25%

Fixed Interest Rates

Products Interest Rate (p.a.)
Swarna Loan 10.35%
Swarna Overdraft 10.35%
Swarna Express 10.35%

Documentation Required

Mentioned below is the list of documents required to apply for Canara Bank Gold Loan:

  • Duly filled application form with photographs
  • Latest Salary Slips, Bank Statements, etc.
  • Address Proof like Aadhar card, Voter ID, Driving License
  • Jewel appraiser’s statement
  • ID Proof like a Driving License, Aadhar card, Voter ID card
  • Income Proof like Form 16 or a Salary Certificate

Leave a Reply

Your email address will not be published. Required fields are marked *