Canara Bank Gold Loan
A gold loan is a secured borrowing where you pledge gold jewellery or eligible gold coins with a lender and receive funds against their assessed value, redeeming the ornaments once the loan is repaid. Borrowers typically use gold loans for short-term needs such as medical bills, domestic expenses, or other unforeseen requirements, since the pledged security usually allows for faster processing than unsecured borrowing.
Canara Bank, a public-sector bank founded in 1906 and headquartered in Bengaluru, offers this facility under its Swarna Loan scheme, positioning it for non-speculative purposes such as meeting medical and other unexpected expenses. The bank's version emphasises a limited set of documents because the loan is backed by the pledged gold, along with quick processing and disbursement. It accepts both gold jewellery and specially minted gold coins as security, and permits multiple transactions within the sanctioned limit.
Repayment is structured as a bullet arrangement, where the principal is settled at the end of the term along with interest, and the bank states there is no prepayment penalty if a borrower chooses to close the loan early. A nomination facility is available, and both resident individuals and Non-Resident Indians are eligible to apply. As with any gold loan, sanction and the amount extended depend on valuation and the bank's assessment, and are not guaranteed in advance.
At 9%, Canara Bank has one of the lowest starting rates of the 16 lenders we track for gold loans.
Eligibility
Loan terms
- Secured against pledged gold jewellery or specially minted gold coins
- No prepayment penalty; loan may be closed early within the term
- Multiple transactions permitted within the sanctioned limit
- Bullet repayment structure with interest
- Nomination facility available
Documents
- PAN and Aadhaar
- Address proof
- The gold to be pledged
- Passport-size photograph
Fees & charges
FAQ
Up to 75% of the assessed gold value — the RBI loan-to-value cap. The rate depends on the lender and scheme, not your credit score.
Every row is date-stamped with the day we last checked it, and links to the lender’s published material so you can confirm it yourself. A row we confirmed against the source reads “Verified”; one we could only sight reads “as of”, and is not presented as confirmed. Anything we have not re-checked in 60 days is marked “rate under review” rather than left to look current. We do not claim a fixed re-checking cycle — the date on each row is the honest answer.
No. Viewing rates is not a credit enquiry and has no score impact. A hard enquiry happens only when you formally apply to a lender.