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When unforeseen expenses or contingencies arise, having a reliable source of funds can be a game-changer. Canara Bank understands these financial challenges and offers a secure and convenient solution - Canara Bank Gold Loan. With competitive interest rates starting at 9.25% and flexible repayment options, this gold loan is designed to meet your urgent financial needs. Read on to learn more about the key features of the Canara Bank Gold Loan, including the interest rates, loan limits, and repayment terms.
Interest Rates for Canara Bank Gold Loans
The interest rates for Canara Bank Gold Loans are competitive and designed to make borrowing affordable. The rates may vary based on the borrower's gender and whether they are eligible for additional interest concessions. Here are the interest rates for the Canara Bank Gold Loan:
- Swarna Loan:
- For women borrowers: 9.25%
- For other borrowers: 9.60%
- Swarna Overdraft:
- For women borrowers: 9.25%
- For other borrowers: 9.60%
- Swarna Express:
- For women borrowers: 9.25%
- For other borrowers: 9.60%
It's worth noting that women borrowers can enjoy an additional interest concession, making the loan even more affordable for them.
Types of Gold Loan Interest Rates
Canara Bank offers different types of gold loan interest rates.
- Fixed Interest Rate: The interest rate remains constant throughout the loan tenure, providing borrowers with predictability.
- Interest rates on gold loans may vary based on the purpose of the loan, with lower rates typically offered for agricultural gold loans.
- Floating Interest Rate: The gold loan interest rate fluctuates as it is linked to external benchmarks, impacting Equated Monthly Installments (EMIs).
- Non-Agricultural Gold Loans: These loans are available to a wide range of individuals, including salaried professionals, self-employed individuals, investors, women, housewives, and students, ensuring accessibility to diverse customer segments.
Canara Bank Gold Loan Purpose
Canara Bank Gold Loan is tailored to assist individuals in meeting various financial needs, including medical expenses and unforeseen commitments or contingencies. Whether you need to cover medical bills or address urgent financial requirements, this loan can provide you with the necessary funds quickly.
Quantum of Canara Bank Gold Loan
With Canara Bank Gold Loan, you have the flexibility to borrow according to your needs. The loan amount can range from Rs. 5,000 to Rs. 35 lakhs. This wide range ensures that you can access the right amount to address your specific financial requirements.
Security for Canara Bank Gold Loan
Canara Bank Gold Loan is granted against the pledge of gold ornaments and jewelry. It's important to note that the loan is provided against ornaments and specially minted Gold Coins sold by banks. Gold coins, bullion, and other forms of gold are not accepted as collateral for this loan. Additionally, the total weight of specially minted Gold Coins sold by banks should not exceed 50 grams per customer.
Repayment Period
The repayment terms for Canara Bank Gold Loan vary depending on the type of loan you choose:
- Swarna (Single Transaction Limit): The entire loan amount must be repaid within 12 months from the date of sanction as a bullet payment along with interest. Interest accrues to the account at monthly rests compounded but becomes due for payment along with the principal only at maturity.
- Swarna Express (Single Transaction Limit): For this loan type, the entire loan amount must be repaid within 6 months from the date of sanction as a bullet payment along with interest. Like Swarna, interest accrues monthly but becomes due for payment along with the principal only at maturity.
- Overdraft: The repayment period for the overdraft facility is 2 years, subject to annual review. Interest is to be serviced monthly.
Prepayment Penalty
One of the advantages of the Canara Bank Gold Loan is that there is no prepayment penalty. This means you can repay the loan ahead of schedule without incurring any additional charges, saving you money on interest costs.
FAQs on Canara Bank Gold Loan:
1. What is the purpose of the Canara Bank Gold Loan?
Canara Bank Gold Loan is designed to meet various financial needs, including covering medical expenses and addressing unforeseen commitments or contingencies.
2. What is the minimum and maximum loan amount for Canara Bank Gold Loan?
The loan amount can range from a minimum of Rs. 5,000 to a maximum of Rs. 35.00 lakh, providing borrowers with flexibility to meet their specific financial requirements.
3. What type of gold is accepted as security for this loan?
Canara Bank Gold Loan is granted against the pledge of gold ornaments and jewellery. It is important to note that the loan is provided against ornaments and specially minted Gold Coins sold by banks, and other forms of gold such as bullion are not accepted as collateral.
4. What are the repayment terms for Canara Bank Gold Loan?
The repayment terms vary depending on the type of loan chosen:
- Swarna (Single Transaction Limit): Repayable within 12 months as a bullet payment along with interest.
- Swarna Express (Single Transaction Limit): Repayable within 6 months as a bullet payment along with interest.
- Overdraft: Repayable over 2 years, subject to annual review, with monthly interest servicing.
5. Is there a prepayment penalty for Canara Bank Gold Loan?
No, there is no prepayment penalty for Canara Bank Gold Loan. Borrowers can repay the loan ahead of schedule without incurring additional charges.
6. Are there any interest concessions for women borrowers?
Yes, women borrowers can enjoy an additional interest concession on Canara Bank Gold Loan, making it more affordable for them.
