Blog #CanaraBankGoldLoan

Gold loan is one the safest loan. Most people believe in investing in gold as it can be used as a precious asset in financial emergencies. Gold Loan Calculator is an important tool that can help the borrower calculate the loan amount availed from the bank or non-banking financing companies(NBFCs). The borrower can easily apply for a gold loan all around India from any banks or financing companies. An applicant always recommends applying for a gold loan at a verified financing company to avoid any loss. 

Canara Bank Gold Loan can be applied online from the bank’s website or offline by visiting the bank’s nearest branch. The bank offers various repayment options which a user can select as per the convenience. The bank also provides several schemes on gold loans. For more information regarding the gold loan, one can check the official website of the bank. 

Gold loans can be used for down payments very conveniently. A gold loan is not a fixed loan and can be easily used for various purposes. One can conveniently avail of a gold loan for down payment purposes. 

The various advantages of taking a gold loan are listed below:- 

• High loan value:- Gold loan has a very high loan value. One can quickly get a loan of upto 20 lakh. Many banks and non-banking financing companies(NBFCs) provide loan upto 20 lakh on gold loans after evaluating the gold ornaments provided to the lender. The loan value depends on the amount of gold ornaments given to the bank and the purity of the gold. One can easily take a gold loan in times of emergencies as the loan value is high.
  
  
• Prepayment and foreclosure facilities:- Many banks provide prepayment and foreclosure facilities on the gold loan. One can easily prepay the loan. The foreclosure charges are very minimal in gold loans. The facility can be avail easily when needed. Prepaying your loan can help you in decreasing your burden. It is always recommended to prepay the money if possible by the borrower.
  
  
• Safety of the gold:- The banks and non-banking financing companies(NBFCs) provide full safety of the loan. The gold submitted by the borrower is kept at the secured locker at the bank. An applicant need not worry about the security of the gold ornaments submitted to the bank. After the successful repayment of the loan to the lender, the gold ornaments are returned safely.
  
  
• Flexible tenure:- The tenure provided on the gold loan is quite flexible. A borrower can choose the preferred tenure as per the convenience. Choosing the right tenure is very much crucial while availing of the gold loan. The shorter the loan tenure, the lesser the interest rate charged. It is always recommended for the applicant to choose a shorter tenure to avoid extra losses. Moreover, An applicant should choose the preferred tenure as per the convenience to avoid any future debt.
   
  
• Additional schemes:- one can avail gold loan and can get additional schemes. The additional schemes offered by the bank can help the applicant in saving money. Various banks and non-banking financing companies(NBFCs) provide schemes on the gold loan, especially during the festive seasons. An applicant saves a lot of money while availing of a gold loan during a festive season. Many public banks also provide various schemes on the gold loan, which the applicant can avail.
  
  
  Conclusion :
  
  The loan value depends on the amount of gold ornaments given to the bank and the purity of the gold. The gold loan has many perks. One of its biggest perks is that it can be used for several purposes. Gold loan is one of the most advantageous loans in today's modern times as it has helped a lot of people during financial difficulties. Gold loan is also a very convenient option for down payments.

Must Read:- Some categories of Gold Loan 

Loans on gold are secured loans as the lender keeps valuable articles in the possession of the creditor, so that if the loan amount is not repaid the creditor can sell the goods to realise his money. The best part of a gold loan is that there is no requirement to submit any other security as a collateral except the gold itself. The bank charges interest rate as per the loan amount and the gold pledged, and once the debtor repays the entire loan amount along with the interest, he gets the pledged gold back.Gold is such a valuable item whose value increases almost every day; so, every family does invest in gold. Almost every person who is competent to contract and not otherwise disqualified by any other law to which he is bound; is eligible to get a gold loan. People from any profession, government or private, self-employed, businessman, trader, contractor, farmer, etc all are eligible to get a gold loan. The documentation process is also very convenient nowadays. All the borrower needs to have is a bank account and KYC documents to establish his identity. Identity establishing documents like Voter card, Aadhar card, PAN card, Driving license, Passport all are accepted.

This asset helps you at your worst times of financial crisis.The old rate varies day to day, and generally the value inflates. The Gold Rate Today is 48200 INR for 10 grams of 24 carat pure gold in Kolkata, West Bengal. In Delhi, it is 47000 INR for 10 grams of  22 carat gold and in Punjab it is 50490 INR for 10 grams of 24 carat gold. Gold is an asset which provides financial cover at the time of geopolitical and macroeconomic uncertainties. In India, buying gold is an age-old tradition people have been following since old times. We buy gold on auspicious occasions like in Dhanteras, Dussehra, Navratri, Gudi Padwa, Makar Sankranti, Akshay Tritiya, and other regional occasions.In India, almost every bank offers gold loans to their customers with interest rates varying from 7.35% to 12.5%, minimum processing charges.

Another reason why people should opt for a gold loan is the rate of interest. The interest percentage of gold loans starts from 9.5%, on the other hand the personal loan interest rate starts from 10.25%, as these loans are mostly unsecured. So, taking a gold loan seems a more convenient option than a personal loan. Moreover, the borrower does not need to have a credit score to become  eligible for a gold loan from any bank. Therefore, the loan gets disbursed within a few hours of applying, so a gold loan is the best option during the time of emergencies.

A detailed comparison of gold loan interest rates in different banks are provided below:-

1. SBI Gold Loan:- The bank offers gold loan at the interest rate of 7.5% for the period of upto 3 years, with processing charges of  0.5% of the loan amount borrowed.
2. Canara Bank Gold Loan:- The bank offers gold loan @7.35% for the period of 12 months with processing charges of 0.5% of the loan amount borrowed which can be minimum Rs. 1000 and maximum Rs. 5000.
3. ICICI Bank Gold Loan:- This Bank gives gold loans @9% for a year and the processing fees is 1% of the loan amount.
4. HDFC Bank Gold Loan:- This instituion gives gold loan @ 9.5% for upto 2 years with 1% of loan amount as processing charges.
5. Manappuram Gold Loan:- This financial institution gives a loan @9.9% for 3 months with Rs 10 processing fees to be paid at settlement time of the loan.
   
   

These banks mentioned above have low rates of interest and provide you with sufficient information to choose the best suited option for you according to your need.

Also read this: Why CIBIL Score Is Not Mandatory In Gold Loan