On the gold loan it extends to you, Canara Bank will levy interest. Due to the fact that a gold loan is secured, its interest rate is significantly lower than that of an unsecured loan, such as a personal loan.
Additionally, you are eligible for a loan sum equal to up to 90% of the cost of the gold items. Swarna Loan, another name for the Canara Bank gold loan, includes two types: Swarna Overdraft and Swarna Express.
Canara Bank Gold Loan Interest Rate 2025
| Type of Loan | Rate of Interest |
| Swarna Loan | 9.25% |
| Swarna Express | 9.25% |
| Swarna Overdraft | 9.25% |
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 2025 is 9.25% per annum.
Characteristics of the Canara Bank Gold Loan Scheme
- Canara Bank has reduced the amount of documentation required for this loan, making it hassle-free and simple to apply for.
- Swarna Loan offers competitive interest rates, which make borrowing more financially feasible.
- Multipurpose: Under limited restrictions, this loan may be used to address any genuine financial need.
- High loan amount: Under this scheme, loans in the range of Rs. 5,000 and Rs. 35 lakh can be obtained.
- Low processing fee: Canara Bank only charges a small processing fee for this loan.
- Flexible repayment: The interest is only due at maturity, and borrowers have a year to pay back the loan.
- Guarantee: The lack of a guarantor for this loan simplifies the application process
Canara Bank Gold Loan Eligibility Criteria
- 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.
Documents Required For Canara Bank Gold Loan
- 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 Procedure
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.
FAQs
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?
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