If the scope of the pandemic and its future economic consequences became clearer, investors sought safe-haven investments, and gold seems to have arisen as one of them, owing to deteriorating economic situations around the world. The slowing global economy, along with international tensions, will hold the price stable. As a result, now is a smart time to diversify your gold holdings by increasing your gold investments marginally. Gold Loan is a loan that could help people in their financial crisis.
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:
- PAN Card, Driver's License, Passport, Voter's ID Card, Aadhar Card are all acceptable forms of identification.
- 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.
