Canara Bank Gold Loan

Canara Bank Gold Loan Interest Rates 2025

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Canara Bank Gold Loan Interest Rates 2025 – Canara Bank, one of India’s most trusted public sector banks, lets you tap into quick funds with its Swarna Loan scheme. Just pledge your gold jewelry or specially minted coins (up to 50 g) and get the money you need in no time—perfect for emergency medical bills, school fees, or business expenses. In 2025, the bank has refocused its gold loan portfolio on retail customers and is targeting a steady 15–17% growth in line with regulatory limits. Even with this shift, Canara Bank continues to offer competitive interest rates and dependable service.

Key Features

  • Loan Amount: ₹5,000 to ₹35 lakh (aggregate limit across all schemes).

  • Interest Rates: Starting at 8.75% p.a., linked to the Repo Linked Lending Rate (RLLR), currently 8.75% as of May 12, 2025. Rates vary by scheme and borrower profile.

  • Tenure:

    • Swarna Loan: Up to 12 months (bullet repayment).

    • Swarna Express: Up to 6 months (bullet repayment).

    • Swarna Overdraft: Up to 2 years, subject to annual review.

  • Schemes:

    • Swarna Loan: For general financial needs, with bullet repayment of principal and interest at maturity.

    • Swarna Express: For short-term needs, with a 6-month tenure and discounted processing fees.

    • Swarna Monthly Interest: For borrowers preferring to service interest monthly, with principal repayment within 12 months.

    • Swarna Overdraft: A revolving credit facility for flexible withdrawals, with monthly interest servicing.

  • Loan-to-Value (LTV) Ratio: Up to 75% of the gold’s appraised value (reduced from 90% for some schemes due to regulatory changes).

  • Processing Fees:

    • Swarna Loan/Swarna Overdraft: 0.5% of loan amount (₹500 min, ₹5,000 max).

    • Swarna Express: 0.15% of loan amount (₹125 min, ₹1,500 max).

    • Note: Processing fees are waived for all retail gold loan schemes until September 30, 2025.

  • Documentation: Minimal, requiring KYC documents (e.g., Aadhaar, PAN, voter ID) and a gold appraisal certificate arranged by the bank.

  • Security: Gold is stored in tamper-proof packaging in bank vaults, ensuring safety.

Interest Rates for 2025

Canara Bank’s gold loan interest rates for 2025 are competitive, starting at 8.75% p.a., linked to the RLLR. The rates vary based on factors such as loan amount, gold purity (18-22 carats), repayment tenure, and borrower profile (e.g., existing customers may negotiate better rates). The per-gram rate ranges from ₹3,725 to ₹4,000, fluctuating with daily gold prices. Women borrowers may receive additional interest concessions, enhancing affordability. For comparison:

  • Canara Bank: 8.75%–9.60% p.a.

  • HDFC Bank: 9.30% p.a. onwards.

  • Muthoot Finance: 10.90% p.a. onwards.

  • Axis Bank: 9.35% p.a. onwards.

Note: Rates are subject to change based on market conditions and bank policies. Check the official Canara Bank website for the latest rates.

Application Process

  1. Online: Visit www.canarabank.com, fill out the gold loan application, and use the EMI calculator to estimate payments. Submit KYC documents online and schedule a gold appraisal.

  2. In-Branch: Visit a Canara Bank branch (note: gold loans are not available at all branches, particularly metropolitan ones for agricultural purposes). Submit KYC documents and gold for appraisal by a bank-approved jeweler. Funds are disbursed within hours upon approval.

  3. Contact: Call 1800 1030 for assistance from a bank representative.

Why Choose Canara Bank Gold Loans?

  • Competitive Rates: Starting at 8.75% p.a., lower than many NBFCs and unsecured loans.

  • Quick Disbursal: Loan processing within hours, ideal for emergencies.

  • No Prepayment Penalty: Repay early without additional charges.

  • Flexibility: Multiple schemes and repayment options (bullet repayment or monthly interest).

  • Transparency: Minimal processing fees (waived until September 30, 2025) and clear terms.

  • Security: Gold is securely stored in bank vaults with tamper-proof packaging.

Canara Bank’s gold loans are a reliable option for those needing fast access to funds without selling their gold. With competitive interest rates and flexible repayment options, they cater to diverse financial needs while ensuring borrower convenience and asset safety.

FAQ

1. What is the interest rate for Canara Bank gold loans in 2025?
The interest rate starts at 8.75% p.a., linked to the RLLR (8.75% as of May 12, 2025). Rates vary from 8.75% to 9.60% based on the scheme, loan amount, gold purity, and borrower profile. Women borrowers may receive additional concessions.

2. What is the loan amount and LTV ratio for Canara Bank gold loans?
Loans range from ₹5,000 to ₹35 lakh, with an LTV ratio of up to 75% of the gold’s appraised value. The per-gram rate is ₹3,725 to ₹4,000, depending on market prices and gold purity (18-22 carats).

3. What documents are required to apply for a Canara Bank gold loan?
You need KYC documents, including proof of identity (Aadhaar, PAN, voter ID, passport, or driving license) and proof of address (Aadhaar, voter ID, utility bill). The bank arranges a gold appraisal certificate. Two passport-sized photographs and a duly filled application form may also be required.

4. What is the repayment tenure for Canara Bank gold loans?

  • Swarna Loan: Up to 12 months (bullet repayment of principal and interest at maturity).

  • Swarna Express: Up to 6 months (bullet repayment).

  • Swarna Overdraft: Up to 2 years, with monthly interest servicing and annual review.

  • Swarna Monthly Interest: Principal repayment within 12 months, with monthly interest payments.

5. Is my gold safe with Canara Bank?
Yes, pledged gold is stored in tamper-proof packaging in secure bank vaults, ensuring safety throughout the loan tenure.

6. Are there any additional charges for Canara Bank gold loans?
Processing fees are 0.5% of the loan amount (₹500 min, ₹5,000 max) for Swarna Loan/Overdraft and 0.15% (₹125 min, ₹1,500 max) for Swarna Express. Fees are waived until September 30, 2025. There are no prepayment penalties.

7. What happens if I can’t repay the loan on time?
A penal interest rate is charged for delayed payments. In case of continuous default, the bank may auction the pledged gold to recover the outstanding amount. Contact the bank to discuss restructuring or extension options.

8. Can I apply for a gold loan without a Canara Bank savings account?
Yes, non-account holders can apply but may need to open a savings account or provide additional proof of creditworthiness. Existing customers may negotiate better rates.

For more details, visit www.canarabank.com or contact 1800 1030.

Also visit : https://postofficefd.com/muthoot-finance-gold-loan-a-quick-and-secure-financial-solution/