This is one of the largest public sector banks in India. It was founded in 1906. Bank provides so many financial products to the customers like commercial banking, consumer banking, assets management, loans and credit cards. Gold Loan is also provided by the bank at very low rates of interest. This is available online and offline. You can apply in either way. The primary objective of the gold loan is to provide financial help to the customers. Since the gold is a costly metal so the lender can recover the amount of loan in case the customer is unable to return the gold loan.

To overcome your short-term needs like medical expenses, paying the debt, bills etc you can avail a financial help from Canara bank gold loan scheme. The Swarna Bhrosa Scheme of Canara Bank is the best loan present in the market with the lowest rate of interest and easy availability makes it one of the best service providers in the market for providing gold loans.

 

Gold Loan

This is also known as “loan against the gold”. In this kind of loan, the customer pledges his/her gold loan to the bank as the security and gets a loan amount from the bank at some rate of interest for a given tenure. Bank won’t check your credit score while providing this loan to you.  Canara bank provides a gold loan under the Swarna Loan scheme.

Why Gold Loan?

Rather than asking for money from your friends or relatives you can get a gold loan from Canara Bank at very easy rates of interest. In fact, if you want to get a personal loan, even then you have to pay high rates of interest to the bank. Because personal loans are unsecured loans, there is no collateral is needed to get a personal loan. So Canara bank gold loan is always a good idea. Besides this, your gold will be kept is the bank’s locker under very tight and fireproof security, the bank is completely liable for the security of pledged gold.

Know More - Gold Loan: Factors to Remember

Uses of Gold Loan

  1. Canara bank gold loan can be used to fulfill any of personal needs.
  2. It can be used for financial purposes.
  3. It can be used to buy a car.
  4. Besides that, it can be used for the agricultural activities.
  5.  Furthermore, you can use this amount of loan to renovate your home.

Features of Canara Bank Gold Loan

There are some features of Canara bank gold loan that are given below

  1. Canara bank provides a gold loan at very low rates of interest.
  2. If you are eligible your loan gets approved within a few minutes.
  3. After the approval of your loan if you have all the documents your loan will be disbursed on the same day.
  4.  Rather than going to the bank to apply for a gold loan you can apply for a gold loan online.
  5. Canara bank provides the very high amount of loan. It can be Rs. 10000 and can be up to Rs. 10 Lakhs.
  6.  Processing fees charged by the bank is very low.
  7. You can return this amount of loan within a year.
  8. The process of application is very easy and hassle-free. There is no need of a guarantor or any kind of collateral in this kind of loan.
  9. Bank won’t check your credit score while providing you the Gold Loan. So there is no need to worry even if your credit score is not good.
  10. Bank provides a 75% LTV ratio.
  11. The gold of purity 18 carats to 22 carats is accepted.
  12. All kind of jewelry is accepted.
  13. Lowest EMI can be of Rs. 8880.
  14. Minimum amount on one gram gold is Rs. 1757 to Rs. 2147. It depends on the purity of your gold.
  15. You can calculate your EMI’s online on the online calculator given online on the website of the bank.

Eligibility

  1.  The age of the applicant should not be less than 18 years.
  2.  The applicant should be a citizen of India.
  3. He/she should have gold more than 10 grams.
  4. The purity of the gold should lie in between 18 carats to 22 carats.

Forms of Gold

  1.  All kind of jewelry is accepted.
  2. Gold bars and bricks are not accepted.
  3. Gold coins weigh more than 50 grams are not accepted.
  4.  Minted gold coins are not accepted.
  5.  Sole Manglasutra is not accepted.
  6. The purity of gold should be 18 carats to 22 carats.
  7. Gold of 24 carats is not accepted.
  8. Gold in the raw form is not accepted.
  9.  Exchange trade gold funds are not used to get a gold loan.

Know More - Top Reasons why Gold Loan is the best borrowing option

Documentation

  1. However the documentation process is not that tedious and complex and tedious in the Canara bank gold loan, still, you have to submit some basic documents.
  2. 2 passport size colored photographs.
  3. One proof of identity. (Aadhar Card/ PAN Card/ Voter ID card/Passport /Driving License)
  4. One residence proof. (Aadhar Card/ PAN Card/ Voter ID card/Passport /Driving License/Ration Card)
  5. One KYC (know your customer) proof.
 

Processing Fees

The processing fees are very less; it is 1% of the principal amount of the loan. Basically, it includes all the legal expenses after the approval of your loan. It is Rs. 1000 minimum and can be Rs. 5000 maximum.

Valuation Fees

When you pledge your gold in a Gold Loan bank does the valuation of your gold. Other banks charge you a valuation fee, but there is no valuation a fee is charged by Canara Bank.

Advantages of Taking a Gold Loan

Following are the Advantages of a Gold Loan

No income and salary criteria-

Gold loans do not require any documentation or validation of income or salary of the person. So even if you are unemployed and unsalaried you can still avail a gold loan. This is because you are pledging a valuable asset i.e. gold in return for the money.

It can be provided in cases of bad credit history as well as low-income level.

Relatively Lower interest rates- Another advantage of taking a gold loan is that they are available at low-interest rates to say 12-16% annually in comparison to the personal loans interest rates of 15-26% per annum.

You need to repay only the interest- You have the option to pay only the interest during the tenure of the entire gold loan and at the end of tenure, you can pay the entire borrowed amount in a single shot.

Total Convenience- The most convenient of all the loans is a Gold Loan. This is because in this all you have to do is pledge your gold with a bank or a private finance institute and the work is done. You can get a loan up to 80% or more of its market value immediately

Less processing time- No tedious and lengthy documentation is required in case of gold loans, hence it can be resorted to in times of urgent needs. Banks take a few hours in the processing of the gold loan whereas some NBFC’s state that they only take a few minutes for the same task.

Know More - 5 Must factor to keep in mind before availing a Gold Loan

How to Apply?

  1. You can apply online for the Canara bank gold loan.
  2.  Search for dialabank on google.
  3. Fill the Canara bank gold loan from there.
  4. You will get a call back after that.
  5.  If you are eligible your gold would be evaluated by the jewelers
  6.  The process of valuation is free.
  7.  Then you will get the amount of loan as the value of your gold.

Canara Bank Gold Loan Procedure

  1.  First of all, apply online for the loan against gold.
  2.  Afterward, the borrower will have to submit an application form along with his / her valuable Gold asset.
  3. Then the bank will evaluate the real value of your Gold in terms of its purity and weight.
  4.  Finally, the Loan is sanctioned to the applicant after checking the genuineness of the asset provided.
  5. The whole Gold Loan process takes around.

CIBIL score and Gold Loan

CIBIL score is a very important part of a person’s financial life. If you deal properly with your loans and the credits then your CIBIL score will be definitely high, otherwise, it will be low. So if your CIBIL score is below 550 then you might have a problem in getting a gold loan. On the other hand, if your CIBIL score is good you will get a gold loan instantly.

Is Gold Loan Secured?

Yes, the gold loan comes in the category of secured loan. You pledge your gold to the bank as a security, so lenders have a less risk of security and so the rates of interest are not that high unlike in a personal loan. Furthermore, you can use this amount of loan to fulfill your personal needs too.

About Canara Bank

Canara Bank was started in 1906 for the welfare of the people of Karnataka and to create financial awareness among the people. They work on the belief of serving the community as a whole.

Why dialabank.com?

  1. Applying online for the Canara bank gold loan is the best and easy way. There are some benefits that you will get after applying for the Canara Bank gold loan online.
  2. Dialabank is the first financial helpline of India.
  3.  First of all, you will get a quick response; you will instantly get a call back after filling the application form.
  4.  Your loan is approved within 5 minutes if you are eligible.
  5.  After the approval of your loan if you have all the documents your loan will be disbursed on the same day.
  6.  There will be no valuation fees for your gold jewelry.
  7. There is no need to go to the bank. Your documents will be picked up from your doorstep.
  8.  There are no charges for applying for the Canara bank gold loan on dialabank.com.
  9.   For more information, you may call on 60011600.

Hence we analyzed that Canara bank gold loan is very easily available nowadays online on the site of dialabank.com.

FAQs About Gold Loan 

  1. How does  Gold Loan work?
     Loan on gold is very simple to understand. The Banks /NBFC provides you with funds against your gold ornament. The amount depends upon the gold weight.
  2.  Gold Loan is secured?
    Yes, it is essential to note that the loan on gold comes in the category of secured loans. Because in a gold loan the applicant put their gold ornaments into the bank’s locker as security or as collateral.
  3. What happens when you don’t repay a Gold Loan?
     If the borrower is unable to return the gold loan on time, then the bank is liable to sell his gold ornaments.
  4. To get a gold loan do I need a co-applicant?
     No, to avail Gold loan you don’t need any co-applicant 
  5. Is Gold loan better than a Personal loan?
    Yes, a Gold loan is better than personal Loan because in Gold Loan banks/NBFC's takes Gold ornament as well as a gold coin as collateral and in case of Personal loan it is un-secured and hence carries higher interest than a gold loan.
  6. What is the best online platform to avail gold loan?
    Dialabank is the best platform to get a loan. Dialabank provides you hassle-free process as well as the lowest interest rate in the market as compared to others.
  7. Is there any fee payable for the Gold Loan?
    Yes, you have to pay the loan processing fee (non-refundable) as well as Valuation fee.

 

Gold Loan Interest Rate of Different Banks - Updated on 2019

 
Bank  Gold Loan Rate 
HDFC Bank 10.75%
Yes Bank  10.85%
Axis Bank 10.90%
SBI Gold Loan 11.50%
ICICI Bank 11.75%
IIFL Gold Loan 11.75%
Allahabad Bank Gold Loan 11.75%
Muthoot Gold Loan 12.00%
Federal Bank Gold Loan 12.00%
Manappuram Gold Loan  12.25%
IDBI Bank 12.25%
PNB Gold Loan 12.25%
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

* For any assistance regarding Gold Loan, call us on 95920-46860, our trained Relationship Managers will solve all your queries.