Do you need urgent cash but don’t want to sell your gold? A Canara Bank Gold Loan is a smart and secure way to borrow money. In 2025, the bank offers some of the lowest interest rates and flexible repayment options. This detailed guide covers everything about the Canara Bank Gold Loan interest rate and schemes in 2025.
Whether you’re a salaried worker, a small business owner, or a farmer, Canara Bank has a plan that fits your needs. Let’s explore all the details in this updated guide.
Latest Canara Bank Gold Loan Interest Rates (As of June 2025)
As of June 12, 2025, Canara Bank’s Repo Linked Lending Rate (RLLR) is 8.25%. Based on this, the gold loan interest rates are:
- Swarna Schemes (Loan, Overdraft, Express, Monthly Interest):
8.90% per annum (RLLR + 0.65%) - Agricultural Gold Loans (linked to 1-year MCLR):
Around 9.25% per annum
These are among the lowest rates available in public sector banks.
Types of Gold Loan Schemes
Canara Bank offers five gold loan schemes. Each serves a different purpose.
1. Swarna Loan
- Rate: 8.90% p.a.
- Tenure: Up to 12 months
- Repayment: One-time payment at the end
- Best for: Short-term needs with one-shot repayment
2. Swarna Express
- Rate: 8.90% p.a.
- Tenure: Up to 6 months
- Repayment: Bullet repayment (lump sum)
- Best for: Emergency needs or fast access to funds
3. Swarna Overdraft
- Rate: 8.90% p.a.
- Tenure: Up to 24 months
- Repayment: Withdraw and repay within your limit
- Best for: Business owners who need flexibility
4. Swarna Monthly Interest
- Rate: 8.90% p.a.
- Tenure: Up to 12 months
- Repayment: Pay interest monthly, principal at the end
- Best for: People who prefer smaller monthly outflows
5. Agricultural Gold Loan
- Rate: Around 9.25% p.a. (linked to MCLR)
- Tenure: Typically up to 12 months
- Repayment: Bullet or overdraft formats
- Best for: Farmers and rural borrowers
Loan Amount & LTV (Loan-to-Value Ratio)
Canara Bank offers gold loans starting from ₹5,000. You can get up to ₹35 lakh, depending on the scheme and the value of your gold.
The Loan-to-Value (LTV) depends on the scheme:
- Swarna Schemes: Up to 75% of the gold value
- Agricultural Loans: Up to 85% of the gold value
You can pledge:
- Gold jewellery
- Bank-issued gold coins (up to 50 grams)
These limits follow RBI guidelines. Therefore, your loan stays safe and fair.
Processing Fees & Charges
Here is a simple table of applicable fees:
| Scheme | Processing Fee (Excl. GST) |
|---|---|
| Swarna Loan / Overdraft / Monthly | 0.30% of loan amount (₹250–₹3,000) |
| Swarna Express | 0.15% of loan amount (₹125–₹1,500) |
| Agricultural Gold Loan | ₹0–₹2,750 (based on loan amount) |
| Safe-keeping Fee (post 30 days) | ₹200/month if overdue |
These charges are lower than private lenders, making Canara Bank a cost-effective choice.
Who Can Apply?
The gold loan process is simple and inclusive. You can apply if:
- You are at least 18 years old
- You are an Indian citizen or NRI
- You own gold ornaments or coins (up to 50g)
- You have valid KYC documents (Aadhaar, PAN, etc.)
💡 No income proof is required. Therefore, it’s ideal for self-employed individuals, homemakers, and farmers.
Documents You’ll Need
Canara Bank keeps the documentation minimal:
- Aadhaar / Voter ID / Passport / Driving License
- PAN Card
- Passport-sized photo
- Proof of gold ownership (optional – bank does gold appraisal)
How Fast Is the Loan Disbursal?
The process is quick and easy:
- Visit the nearest Canara Bank branch with your documents and gold.
- The bank checks the gold purity and your identity.
- Once approved, the money is credited within a few hours.
You can also begin the process online to save time.
Benefits of Canara Bank Gold Loans
Here’s why you should choose Canara Bank:
- ✅ Low Interest Rates (as low as 8.90%)
- ✅ High LTV Ratio (up to 85% for farmers)
- ✅ Quick Disbursal (same-day funds in most cases)
- ✅ Multiple Repayment Options (monthly, bullet, overdraft)
- ✅ No income proof required
- ✅ Transparent processing fees
- ✅ Government-backed trust and security
Smart Tips Before Applying
- Compare all gold loan schemes and pick one that suits your needs.
- Understand the repayment method—monthly vs. lump sum.
- Avoid delays in repayment to skip safe-keeping charges.
- Ask the branch about seasonal offers or interest waivers.
- Track RLLR & MCLR regularly—interest rates can change.
Example: Cost of a ₹1 Lakh Gold Loan
Let’s say you take a Swarna Express loan of ₹1 lakh for 6 months at 8.90%:
- Interest: ₹4,450 (₹1,00,000 × 8.90% × 0.5 years)
- Processing Fee: ₹150 (0.15% of ₹1 lakh)
- Total Payable: ₹1,04,600 (approx.)
Add 18% GST on the processing fee separately.
Canara Bank vs. Other Banks
As of 2025, Canara Bank offers one of the lowest gold loan rates in the public sector:
Therefore, Canara Bank is a top choice for those looking to borrow at a low cost.
Special Focus: Farmers & Rural Borrowers
Canara Bank supports agriculture through:
- Higher LTV (up to 85%)
- MCLR-linked interest rate (currently ~9.25%)
- No income proof
- Overdraft options for working capital
This makes it easier for farmers to manage crop cycles and business needs.
Final Words
Canara Bank gold loans offer low rates, flexible repayment, and fast disbursal. With interest rates starting from 8.90% per annum, simple paperwork, and a range of schemes, it’s one of the most reliable loan options in 2025.
You don’t need to sell your gold. Instead, use it to meet your urgent needs—whether for business, farming, medical bills, or family events.
Quick Checklist
✅ Choose the right scheme
✅ Match tenure with repayment capacity
✅ Carry KYC and PAN
✅ Visit branch or apply online
✅ Repay on time to save on extra charges
