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Canara Bank launches Special Gold Loan Business Vertical

Mumbai, May 18, 2020: As the current pandemic has changed the socio-economic scenario, Canara Bank has launched a Special Business Vertical dedicated for Gold Loans

The Bank’s Gold Loan products are designed keeping in mind the need for quick, hassle-free experience for customers with low interest cost. The loans will help the customers with   the much needed liquidity to revive their business activities and to bring back normalcy to their lives.  With this objective, the Bank has also launched a special Gold Loan campaign till 30th June 2020 with an interest rate as low as 7.85% per annum.

The credit can be utilized for different purposes, such as expenses for  agriculture and allied activities, business needs , health emergencies, personal needs  etc among numerous other requirements .

The loan facility can be availed from all designated branches pan India. 

D Vijay Kumar, General Manager, Canara Bank said, “Gold, a precious commodity, is widely held by Indians as family asset in the form of jewellery and coins, however seldom leveraged for monetary requirements.  In times of need, this asset can be utilized to avail credit to support emergency cash requirements”.

“We understand the depth of the issues our customers are currently facing due to Covid 19 pandemic and they are in need of immediate credit support to meet their emergency needs.  Hence special Gold Loan products are designed keeping in mind the challenges faced by the  customers affected by Covid 19 pandemic and these products come with lowe rate of interest (7.85% /annum), minimum  turnaround time (TAT) and high flexibility to meet their credit needs,” he said.

The loans are payable within a period of one to three years with flexible repayment options.

 Canara Bank Gold Loan Schemes:

1. Agricultural Operations and crop cultivation activities - This Loan can be availed against gold ornaments with maximum  borrowing limit  of Rs. 10 lakh for corp cultivation expenses.

2.For allied agricultural activities – The loan can be availed to meet the expenses for allied agriculture activities/land development activities. The maximum limit per borrower is Rs. 20 lakhs.

3.OD facility to farmers against Gold-Jewellery (GL-OD) - Overdraft facilities on the security of gold jewellery to meet the expenses for  cultivation of crops which include Cost of seeds, fertilizers, pesticides, harvesting, charges towards irrigation, labour, and any other production costs, and also  other working capital requirements related to allied agriculture and land development activities. Minimum limit is Rs 1.60 lacs  and maximum limit for crop cultivation OD is Rs. 10 lakh, and  allied  and land based activity is Rs. 20 lakh.

4.Personal loan scheme ‘SWARNA LOANS’ can be availed to meet medical expenses, domestic expenses, business expenses or any unforeseen commitments/ contingencies that may arise. The maximum permissible limit is Rs.20 Lakhs.

The rate of interest for all the above Gold Loan Schemes is 7.85% per annum till 30.06.2020  and the entire  loan  amount  can be repaid in one year except in case of GL-OD facility which can be paid in 3 years.  The interest is payable monthly in case of GL-OD and Swarna Loans and yearly in case of other schemes.

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