Introduction
Jewel Loans are traditional forms of lending, when a borrower pledges one’s jewels for obtaining loan from a financial institution. Gold being a precious metal enjoys high value among pledge worthy items, the pawn brokers of earlier times used to loan funds when one pledges gold jewelery.
Commercial banks also follow this practice as Gold ensures good security for loans and they extend funds as a percentage of the gold that has been pledged. Banks such as Canara Bank requires the borrower to apply for gold loan online first and submit other material after wards.
Canara Bank loan against gold is offered through their Swarna Loan Scheme, which is extended to the borrower for the purposes of medical expenses or similar other contingencies against Gold Jewelery or ornaments.
Canara Bank Swarna Loan Scheme
Canara Bank loan against gold is offered without any other guarantee or assurances and the loan approval is a hassle fee process. The eligibility criteria for Canara Bank Gold Loan include the following:
• The applicant must first have a Savings bank account.
• The past financial record of the applicant must be satisfactory.
• The Gold loan applicant for the first time must have him introduced by someone known to the bank.
The applicant requires completing the form for the Loan, while the bank arranged Jewel appraiser certificate, the applicant’s Salary Certificate and the Certificate for Income Proof are to be attached to that form. The loan process also requires submission of an Identity Proof and also an Address Proof, along with 2 copies of photographs in Passport size.
The Identity proof can be given using copies of Passport, Voter ID or Driving license, while for Address Proof, the copy of Ration Card, Telephone or Electricity Bill, Rental Bill and few other documents carrying one’s home address in it will do.
Interest rate for Canara Bank Gold Loan
Canara Bank Gold Loan interest rates are based on basic rates of Interest that all Commercial and Nationalized Banks observe according to the Reserve Bank of India directions. As at present, the base rate being 9.5%, the Interest charged on Gold Loans are BR + 4.25%, which is considered very reasonable according to Banking circles.
Canara Bank Gold Loan Procedure
The steps involved in obtaining Canara Bank loans against gold are as follows
• The applicant must make an application on line for the loan against gold.
• Following this, one has to submit the application form along with the Gold item that is going to be pledged.
• Canara bank will thereupon arrange for evaluating the real value of the Gold produced in terms of its purity and weight.
• The bank approves the Loan after ascertaining the genuineness of the Gold provided for the loan.
The whole process of obtaining the loan will be within an hour, provided the papers submitted are proper and the gold item is genuine.
Benefit of Gold Loans
Obtaining Gold loans involves simple and hassle free process when compared to other personal loan formalities, involving two guarantors and similar requirements. Gold loans are also given at interest rates lower than few other kinds of personal loans. Further one can apply for gold loan online with many banking organizations, which speeds up the process.
Canara bank loan against Goldi's known to be popular among banking circles.