Blog #Canara Bank gold loan

A gold loan is easily granted to the applicant. Gold is a very precious asset which can be used to avail loan from any bank or non-banking financing companies(NBFCs). Banks and non-banking financing companies follow a standard method to determine the value of gold accepted as collateral given by the borrower. Gold rate today 48,270.00 Indian Rupee for 10g of 24k gold. The gold rate keeps fluctuating depending on various factors like economical factors, demand and supply, market conditions, government policies and many others. 

Taking a loan during a favourable market condition of the gold can be beneficial. Gold loans have helped so many people around the country. It can be used to fulfill daily needs of the borrower. It is a good temporary solution in times of financial difficulties.  After the verification of the documents the loan is sanctioned easily into the applicant’s account.

The evaluation of the gold decides the loan amount. Banks and non-banking financing companies(NBFCs) follow a standard procedure for determining the value of the gold. The higher the purity of the hold the higher will be the loan amount sanctioned in the borrower’s account. The loan amount is directly related to the purity of the gold and the market price of the gold. Most of the banks and financing companies have in-house valuation teams and an online valuation method on their websites. The valuation can also be done by the applicant online which is very convenient. The online valuation process of the gold can help borrowers figure out the exact loan amount possible that can be availed. 

There are few points which a borrower must keep in mind for the evaluation of the gold. Few points to keep in mind while gold evaluation are given below:- 

• Gold Karats:- Gold quality is measured in karats (K). The higher the gold karat the higher will be the loan amount availed. Banks and non-banking financing companies accept gold between 18 Karat to 24 karat. Karat defines the purity of the gold. The lenders do not accept gold below 18 karats. One must make sure of the purity of the gold while applying for a gold loan. The amount of loan financed for high karat gold will be different from the loan amount financed for low karat gold. High larat of the hold can help the borrower to avail higher loan amounts.
  
  
• Weight of the gold:- It is one of the most important factors that are considered to zero down on the finance amount. Banks and non-banking financing companies accept at least 10 gm of gold for gold loan. The higher the weight of the gold the higher will be the loan amount availed from the financing companies. A borrower can get a higher amount of loan by pledging gold jewelleries that have a higher weight.
  
  
• The current gold per gram rate:- The market price of the gold keeps changing depending upon various factors. Banks and non-banking financing companies consider the average rate of the last 30 days of per gram rates of gold for the process of gold valuation. The market conditions are the important factors to consider while taking a gold loan. One should take a gold loan looking at the favourable market condition.
   

Conclusion

Banks and non-banking financing companies(NBFCs) consider a few points while evaluating a gold loan that includes the purity of the gold, market price of the gold, amount of the gold given to the bank and many other factors. Various banks provide amazing deals on gold loans like the Canara bank gold loan. One must accurately evaluate the gold given as the collateral to the banks and financing companies. These days the borrower can easily evaluate the gold online from the official websites of the banks. 

Also Read:- Gold loan Also Helpful For Medical Reasons 

The different kinds of the recent reforms in the policies implemented by the government have made a great impact in stabilizing the economy to some extent which was having a very bad effect on the economy. For any kind of emergency use or any medical-related requirements, especially during this time of the pandemic, the options of gold loan, personal loan and other types of loans have sold its remarkable features with the reduced and relaxed limitations and, to some extent, have made to bring some stretch of the smile on the faces of the people. Some circumstances are not used by other types of loans but the gold loan can be availed during those particular times as well. In replacement of the other types of loan gold loan is better but not vice versa.

RATE OF INTEREST:- 

The availability of the gold loan calculator will provide an excellent better estimation for a good decision. The question arises which will be more affordable to buy a two-wheeler loan through a gold loan or a two-wheeler loan. The rate of interest for a gold loan is very much lower as gold is broadly traded in the stock exchanges and the jewellery market. The abundance of gold present among the common people is another reason for the same. The amount of the gold loan spent on paying the whole amount of the car will be an excellent option for purchasing. Therefore, the interest rate will be much higher in the case of a two-wheeler loan.

TENURE OF THE LOAN:-

One of the most important things is the period of the loan for which we are availing. This factor depends that how much extra interest we are paying as extending the tenure period will extend the monthly instalment, and each Installment will involve interest on the loan. Generally, gold loans are available for a shorter period as compared with the two-wheeler loan. Canara Bank gold loan also provide such a type of tenure facility for helping the customers. Gold loans primarily event for 12 months to 36 months while on the other side of two-wheeler loan for three years to 5 years time period. For example, gold loan of rupees 1.5 lacs and interest of Rs 2500 every month then it will be a cheaper deal while on the other side of the hand the same amount of a two-wheeler loan for some time of 6 months more than that of the gold loan will attract more interest than the former one.

USE OF APPLICATION AND PROCESSING TIME:-

The gold loan application is very fast and straightforward. It does not require any kind of complex type of procedure like that of a two-wheeler loan where many former it is of starting from getting the licence to achieving the final possession of the two-wheeler. Many formal processes need to be mandatory to perform by a candidate applying for the two-wheeler. At the same time, in the gold, the amount is disbursed within 5 to 10 hours only on the same amount can be used for the same purpose but not like that of the two-wheeler loan. There is no requirement of showing any kind of income proof documents in case of a gold loan, but while on the other side, there is always a requirement of the source of income as income is the only source from where the EMI will be paid. Rate of interest for the tenure period and the documentation, fast approval, and other different opportunities linked into while comparing the gold loan for purchasing a two-wheeler or directly purchasing a two-wheeler loan for a bike.

Read More:- When Should We Apply For A Gold Loan? 

A gold loan is the simplest form of a loan from which the cash requirements and the emergency requirement of the cash can be fulfilled. Under this method if gold in the form of jewellery or the form of a coin if is available with you then you are having the chance to take it to the bank or any kind of nbfcs where it will be valued as per the gold loan per gram according to the current date and after the valuation is done you will be  explained and will be given information about to what extent of the amount of loan can be availed what can be the probable rate of interest, tenure period etc.

Purity of the gold

Everything is not what it seems. If having gold does not mean that it will be accepted. There is a minimum requirement that needs to be fulfilled by the loan borrowers that the gold which they are availing for the acceptance by the financial institutions must have the limitations of purity from the 18 carats as low to as high as 24 carats. Any limitations below or beyond the upper and lower limits are not acceptable by most of the banks and institutions but in certain cases, there are exceptions for which proper approval is required. All these things are done based on the heating up of the purpose of proper execution and evaluation of the accurate loan amount so that the customer does not suffer after availing of the loan.

Rate of interest

One of the most important things about the gold loan as per gold rate today  is that it has the most unique and comparable feature that is the lowest rate of interest. Yes, you heard it right, the lowest rate of interest as compared to any type of loan. It has been noticed that banks provide good deals of the whole done at a very low rate of interest as compared to that of the NBFC but overall the gold loan is provided with the lowest rate of interest. That makes the customer feel so easy and finds it's equal to avail a gold loan in kind of any emergency as compared to that of the other options which are time-consuming, expensive and uncertain.

No headache of credit score

If you talk about the personal loan, car loan or any other types of loans there is always a requirement of a credit score which is a three-digit number issued by the credit rating agencies or the bureaus. In most unsecured loans there is always a risk that either there will be a surrender of the loan amount or the non-payment of the loan or the customer will become bankrupt. In this type of situation, the bank has no option but to add the loss under the heading of a bad day for a bad loan which is a total loss for the financial institutions. Canara Bank gold loan offers such schemes that along with no requirement of credit score there are also other benefits. In the case of a gold loan, there is no risk associated the gold available with the bank against which the loan amount was sanctioned will be treated as an asset and will be sold off or will be auctioned in case of any such incidents and the bank will be having the freedom to resell it accordingly and recollect the amount from there.

Conclusion

To conclude, we can see that there is no other loan that will be sanctioned or approved as fast as a gold loan as there is a very little requirement of documentation which only includes the address proof of identity and just some passport size photographs and the documents showing the ownership of the gold. This is the reason that gold is not only used in the celebration of the festival but also in the celebration of crossing over the difficult situations of life in the form of a gold loan

Read More:- Gold Loan Meet The Needs Of People 

Gold is a precious metal like platinum silver, and it is shiny and brings shine and happiness to the lives of the people by providing financial help in the form of gold loan from the different types of loan providers like banks and nbfcs. The hallmark concept was first introduced during the fourth century only, which was first done during the time of precious metal silver. Then it is continued to be used in different precious metals like gold and platinum. So we can explain the full procedure and complete the certification of purity and fineness of gold, which is termed hallmarking. In our country, one of the most important challenges in the problem can be seen frequently that it has increased India’s condition for buying in kind of gold with low Gold Loan Interest Rate or availing a gold loan during the time of emergency.

Previously there was a nose search problem, but as the technology got to advance, the fraudulent activities have also got increased due to which the cases of false gold it has been noticed in different opportunities, and this is the reason that starting of the hallmarking system in India BIS after which customers are feeling much safer as it has been done for the safeguard of the interest of the gold customers who are purchasing the gold for availing it in the form of a loan. This is why not only for the purchasing of the gold but also for availing alone in the form of a good loan where the original school will be required to pledge in the bank. So the Financial institutions are also guiding the customers to use the goal of having hallmark as it will prevent them from cheating and fraudulent activities to be coming in the future can happen at any time.

Along with the hallmarking of the gold, some significant requirements need to be followed by the person who wants to avail of a gold loan and enjoy the financial boon. Many lenders or loan providers in the market do not exceed the gold below the purity of 18 carats. Canara Bank Gold Loan has some such facilities to provide betterment for the customers. The different types of stones on the diamonds attached with the gold jewelry will not be treated as a part of the gold during the valuation of the gold either as per the weight or as per the value. On the other side of the head and some limitations, rules, and regulations are also there for the gold coins in some cases and places. The coin’s purity might be asked to be more than the normal purity limits and weight. Sometimes, the weight is more than 350 grams, and most Financial institutions do not like to maintain it.


Before availing of any type of loan, especially in the case of the gold loan, there is always a necessity that is kept as the gold loan is preferable by almost all the sector of the society because previously there was a lack of information along with the connectivity. The flexibility in different kinds of payment methods will make the person feel so that if one payment is overlooked or forgot to research what type of payments like that of monthly instalments. The first and foremost, if we can see, is a picture of the process of paying the interest every month but repaying the principal at the last turn off period. One of the most significant advantages of paying in this type of loan that there will be less working during the initial time of the loan term. On the other hand, there is a concept of bullet repayments where there is a requirement to pay the whole interest and the principal amount at the end of the loan term.

Also Read:- Where Do We Find Gold Rates Involved? 

Everyone wants to have a high amount of money and that money amount can be either from borrowing or earning. But if a person is earning there is no issue but if the person is in need of money he is great at using his/her gold asset.

Gold Rates Today may differ as per the purity of the gold in various Banks. As the  Bank offers different Gold Loan Rates according to the carats and purity of the Gold.As per the official Website of the Bank, It offers 7.65% Gold loan rates.

Many people believe that a gold loan is known for luxury purposes but the real role of a gold loan is to fulfil the needs during an emergency. People are not able to arrange many from financial institutes but because of the gold loan where there is no requirement of credit score the borrower will get the desired amount as per his/her gold’s purity. After the tenure period, the borrower will get benefits in the credit score as well through which he/she can get extra discounts on other loans and can be eligible for other loans as well. This is also an ideal loan during an emergency because the person can be at high interest as well but it will offer you a low interest rate.

Bank has one of the lowest gold lending rates, at 7.65%, for both current bank clients and new borrowers. The interest rate on a  Bank jewel loan varies depending on the amount borrowed, the purity of the gold, and the loan-to-value ratio.

Gold Loans are loans that you can get by pledging your gold jewellery to a bank. Bank gold loans can be used for both personal and company expenses such as children's schooling, marriage, and other financial crises in the household. The below are some of the advantages of getting a loan from a Bank:

• Easy, no-hassle loan.
• Your gold ornaments are completely healthy.
• The interest rate that is fair.

Features of a Gold Loan

The interest rate on a Canara Bank gold loan starts at 7.65%.

• The bank charges a processing fee of 0.5 per cent of the loan volume, with a minimum of 1,000 and a maximum of 5,000 rupees.
• The term of a Gold Loan varies from 6 to 12 months.
• Bank offers the lowest EMI per lakh on a gold loan with the lowest gold loan interest rate of 7.65% and the longest loan term of 12 months.
• The bank charges a fee on prepaying jewel loans.
  
  

Bank Documentation
Bank's documentation process is simple. To obtain a gold loan, you must have one proof of identity and one proof of address. The following is a list of name and address proofs:

1. PAN Card, Driver's License, Passport, Voter's ID Card, Aadhar Card are all acceptable forms of identification.
2. Voter ID cards, Aadhar cards, rent agreements, utility bills, and bank statements are all acceptable forms of proof of address.

Other Charges being objected by Canara Bank
 There are various other charges that have been charged by Canara Bank which includes the following:

The  Bank offers 1% of the loan in its processing fee.

Faq’s

Does the bank provide Gold loans at Low Rates.?

Yes,  the Bank has lowered the lowest interest rate on gold loans, which will take effect on April 21, 2021.  Bank currently provides gold loans beginning at 7.65%, a reduction of 1.05 per cent from the previous average of 8.70 percent.

What is the maximum amount of gold loan I can get from the Bank?

Bank will lend you up to Rs. 20 lakh as a gold loan.

It is the fastest assessment done by the loan provider for your gold which is happening in hours nowadays. After it is done one is required to go through the documentation process which is fast, secured, and reliable. There is no chance of forgery or getting lost the documents hence it is a safe method. The loan repayments have flexible options which will suit the customers as per their choice.

Gold Loan for business purposes will be a very good option. As gold is available in most of the houses of India.If anyone thinks that a gold loan apply online is the best option. There might be different opportunities as well, such as the availability of the gold in the house, a very unique idea of Business, and a shortfall of funds happening for the particular financial meeting of the unique idea, then it is a very great option.

For example, if a person is willing to start a business, there is a requirement of about 150000 rupees. On the contrary of the fact, the person manages to arrange but the other leftover 50000 rupees is yet to be arranged. He searched for lots of options to bridge the gap between the shortfall but he failed to arrange. Fortunately, he was having some gold with him. Use that particular gold availing a gold loan and balloon amount account within a matter of 5 hours.

On the other side of the coin, the amount of the gold loan is used in any kind of short-term use than funding a vehicle loan will be a very great option. Nowadays the transport industry is seeing huge growth in the meanwhile the business or any investment in the transportation industry will be a good option.

For example, the owner of a transport company wants to purchase some furniture for a particular office to set up a new location but is having a shortfall of a fund. In this situation, the owner decides to avail a gold loan against the gold available with him and their voice setting up the furniture in a new office which will be treated or will act as an asset only as when there will be the winding of the company this furniture will be sold off and the revalued amount can be achieved. Canara Bank Gold Loan is the bank that provides this facility.

As a short-term used gold can be used for availing loan for some educational purposes as well. If a person sees any kind of growth by pursuing any kind of courses for any educational degree, one should always go for it. For example, if anyone is about to take some for pursuing higher studies for example hotel management as a degree course but every time all the students are not the same. The financial condition of some students might be good for some of the students. In such cases, availing of a gold loan and funding the particular educational requirement will not only push the growth and development of the person but also for the society as well.

Conclusion :

To conclude, it can be short-term requirements in the future for example for investing in mutual funds as well as in the safe instruments of the finance investments can be a great option to practice. In the meanwhile, one thing should be noticed that if there is a requirement for a particular amount then the gold loan should be for more than a little bit of the required amount. This is because the extra amount can be utilized in other things as well.

More Read:- Is Gold Loan Secured? 

Relevance of Gold loan: Gold loan is availed by keeping the gold as a mortgage in banks or NBFCs. Gold is a valuable asset, so it is marked as an asset in banks. The market value of gold is surging its prices. Gold is found rare in nature but has a high demand. There are idols of gods in Indian temples made up of gold, making them more significant and worthy.

Gold loan process:

This procedure can be carried out both online and offline:

Offline: One has to visit the bank and enquire about gold loan eligibility. Document verification is to be done by submitting two photographs along with Identity proof and Address proof. The bank representatives evaluate the gold purity test for assessing the impurities present in Gold. The loan is sanctioned based on Gold's evaluation. An authorised letter is issued to the borrower where bank details, loan amount, interest rates, prepayment options, foreclosure charges, loan tenure, repayment options, gold rate per gram, etc., are mentioned. Once you have deposited the gold safely in the bank, the loan amount is credited.

Online: Complete an online application form. The application can be filled from the official webpage or app. The inquiry can be made online. A bank representative will call you shortly and schedule an appointment for a bank visit. You have to carry Identity proof and address proof and two photographs and gold for the purity test. Afterwards, on evaluation, The gold loan is sanctioned.

Gold loan eligibility: The eligibility criteria are present for availing loan. The loan can be acquired for agricultural purposes and non-agricultural purposes. Canara Bank gold loan has three schemes.

Agricultural Jewel Loan Scheme Agricultural purpose: Farmers or agrarian labourers can acquire it by showing proof of agricultural land. Punjab and Sind Bank's gold loan offer low interest rates for this purpose loan. This amount has to be used only for agricultural purposes.

Non-Agricultural Jewel Loan Scheme Non-agricultural purpose: This can be acquired by self-employed, salaried, businessmen, homemakers, etc. This amount can be used for business expansion, travel purposes, higher education, personal use, etc.

Repayment: 

The three repayment options are given:

Post Dated Cheques: The cheques are issued on a future date and can be issued to the nearest branch if you are not a Bank customer.

Electronic Clearance System: The digital transfer is done from another bank monthly. Debit Mandate or standing instruction, an instruction given to the bank to make payments from its account or some other bank at a regular interval.

Benefits:

No credit score is required. As gold is kept collateral, no other details are needed.

No income proof is required.

Use of the amount with no restriction.

The loan is processed much more quickly than other loans.

It has low-interest rates of 10.00% – 16.00%.

No documentation charges are required.

No foreclosure charges are present.

Repayment options are given.

A loan amount of up to 15 lakhs can be sanctioned.

Gold loans applied online are convenient for senior citizens and disabled people.

Safety of the Gold: We value you because gold is your most precious asset. In the bank lockers, we keep your belongings safe. Vaults in banks are heavily guarded. Security cameras are used to keep an eye on them. Lockers are secured with unique keys. This room is only accessible to bank officials. The lockers are made from durable metals that are difficult to penetrate.

Gold rate today has been seeing some momentum since the beginning of the year. This is on the grounds that, equity markets got hammered toward the beginning of the year, which pushed financial backers to put resources into a place of refuge asset like gold. The valuable metal may not be a top pick over the most recent couple of years, as prices have moved in a tight reach. A fall in equity prices toward the beginning of the year, considered some to be too gold as a venture.
Read More:- Know About Gold Rate In India