Rs 5000 - Rs 35 Lakh
Rs 1100 (Upto 5 Lakh loan amount) to Rs 1450 (Above 5 Lakh Loan amount)
Swarna (Single Transaction Limit): The loan will be repaid within 12 months from the date of sanction as a bullet payment along with interest.
Interest will accrue to your account at monthly rests compounded, but you must pay both principal and interest when the loan matures.
Swarna Express (Single Transaction Limit): The entire loan will be repaid within six months from the date of approval and must be made in a single payment with interest. Interest will be accrued monthly, but only becomes due for payment with principal at maturity.
Overdraft: Interest is to be paid monthly. The loan period is 2 years, and the borrower must provide proof of income at least once every year.
Getting a gold loan is a tedious and time consuming process, isn’t it? Well it turns out that we at IndiaGold have a solution for your problem. Now you can get Gold loans at your convenience.
Here are some of the key factors that can affect the interest rates on gold loans:
Credit score: Like any other loan, the credit score of the borrower plays a crucial role in determining the interest rate on a gold loan. A higher credit score indicates a lower risk of default and hence, the lender is willing to offer a lower interest rate. On the other hand, a lower credit score may result in a higher interest rate, as the lender perceives the borrower to be a higher risk.
Loan to value ratio: The loan to value (LTV) ratio refers to the amount of loan being offered as a percentage of the value of the gold being used as collateral. A higher LTV ratio indicates that the borrower is seeking a higher loan amount relative to the value of the gold being used as collateral. This may result in a higher interest rate, as the lender is taking on a higher risk by offering a larger loan.
Tenure of the loan: The tenure of the loan, or the length of time over which the loan is to be repaid, can also affect the interest rate on a gold loan. Longer loan tenures may result in lower interest rates, as the borrower has more time to repay the loan. On the other hand, shorter loan tenures may result in higher interest rates, as the borrower has less time to repay the loan.
Market conditions: The interest rates on gold loans may also be influenced by market conditions, such as the prevailing interest rates in the economy and the demand for gold loans. If the overall interest rates in the economy are high, the interest rates on gold loans may also be higher. Similarly, if there is a high demand for gold loans, the interest rates may be higher due to the increased competition among lenders.
Type of lender: The type of lender offering the gold loan can also affect the interest rate. For instance, banks may offer lower interest rates compared to NBFCs, as banks typically have a lower cost of funds and can offer loans at a lower margin.
Quality and purity of gold: The quality and purity of the gold being used as collateral can also affect the interest rate on a gold loan. Higher quality and purer gold may fetch a higher loan amount and result in a lower interest rate, as the lender perceives it to be a lower risk. On the other hand, lower quality and impure gold may result in a lower loan amount and a higher interest rate.
Repayment track record: The borrower's repayment track record can also influence the interest rate on a gold loan. A borrower with a history of timely loan repayment may be offered a lower interest rate, as the lender perceives them to be a lower risk. On the other hand, a borrower with a history of default or late repayment may be offered a higher interest rate.
In conclusion, the interest rates on gold loans can vary significantly depending on various factors such as the credit score of the borrower, the loan to value ratio, the tenure of the loan, market conditions, the type of lender, the quality and purity of the gold, and the borrower's repayment track record. Understanding these factors can help borrowers make an informed decision and choose a gold loan that is suitable for their needs and budget.
Because gold loans are secured by genuine gold, financial institutions can easily give them. Lending against gold is safer as financial institutions can quickly sell the gold if the borrower defaults. As a result, they typically disburse such loans within a few hours. Hence, processing times are reduced, resulting in more convenience for borrowers.
Although Canara Bank requires you for a doorstep visit for availing for a gold loan, you can simply get a gold loan at your convenience with IndiaGold. The amount will be transacted within 30 minutes after processing. Submit your Phone No below and our executive will call you ( Lead gen box)
Gold Loans in general have lesser interest rates because gold is kept as collateral. Cana Bank offers interest rates of 7.10 - 7.60% p.a
With indiagold, you get gold loans at just 0.49%* interest per month ( 5.88% per year) In contrast, banks and other financial institutions give personal loans at 15% interest per annum.
Gold loans require the least amount of documentation because secured collateral is already in place. With indiagold, you’ll just be required to fill up a form and your relationship manager will be there to help you through your gold loan journey.
In most cases, the bank determines the loan amount based on the borrower's repayment capabilities and credit history. This is not the case with gold loans, though.
Because gold is used as collateral, lenders are confident in the repayment of the principal component and do not base their decision on the borrower's credit history.
Bullet repayment: Bullet repayment is a method in which you pay interest and principal amounts at the end of a gold loan. During the loan term, you are neither required to pay interest or principal; you make one final payment when your loan expires.
Overdraft Facility: This is a popular service for self-employed people, as the financial requirements of such business people are often variable. Through this service, you can withdraw money according to your own needs.
EMI Facility: By opting for this option, you can repay the interest amount as per the EMI schedule of the gold loan.
However, you will have to pay back the principal amount borrowed at maturity. This arrangement works wonders for most borrowers as throughout the loan tenure one is only liable for paying interest and not worrying about principal repayment.
The gold loan process is very similar to that of other secured loans. In this case, you take your gold items to a lender along with the necessary paperwork. The lender assesses the gold items and confirms the paperwork presented.
The lender approves the loan amount based on the evaluations. According to the loan agreement, you must repay the main amount and the interest amount to receive the pledged gold objects.
There are several ways you can pay your Canara Bank gold loan EMI (Equated Monthly Installment). Here are some of the options available:
It is important to make the gold loan EMI payments on time to avoid default and the associated consequences. If you are unable to pay the EMI on time due to unforeseen circumstances, you should contact Canara Bank and explain your situation. The bank may be able to provide you with an EMI holiday or restructure the loan to make it more affordable for you.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka.
The bank also believes that financial inclusion is the only way to bring about inclusive growth and development in society.
The bank has been striving hard to achieve this goal through various programs and initiatives such as ‘Chai Pe Charcha’ (tea discussion forum), ‘Mukti Mission’ (financial literacy program), ‘Rurban Mission’ (financial empowerment initiative), ‘Lok Shakti Scheme’ (micro-credit scheme) and many more.
Canara Bank has been ranked among the top 20 banks in India for financial inclusion by World Bank Group for the fiscal year 2017-2018.
If you're making monthly payments on your EMI, you can do so online through the bank's website or in person by visiting the branch.
Canara Bank Gold Loan Per Gram Rate of Today is ₹ 2,900 to ₹ 3,450
EMI repayment can be made online through the bank's portal.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
Swarna Loan is a loan granted against the security of gold ornaments or specially minted coins sold by banks. It enables borrowers to meet medical expenses or pay for unforeseen commitments, such as those associated with the treatment of an illness or medical procedure.
At indiagold, all forms of gold jewellery are accepted, provided it is 18K and above. No gold coins, biscuits, and bars are accepted. The value and purity of gold are measured and assessed by experts and trained valuers.
The interest rates are subject to jumping interest rates if a payment is missed due to unforeseen circumstances.
The consumer will also be contacted by the loan manager to discuss the problem. Hence, indiagold advises making timely payments to take advantage of lower interest rates.