On May 18, 2020 Canara Bank has launched a special business vertical dedicated for gold loans to meet the financial needs of its customers as they are in need of immediate credit support to meet their emergency needs due to the COVID-19 pandemic
i.The bank has launched a gold loan campaign till 30th June, 2020 with an interest rate as low as 7.85% per annum minimum turnaround time (TAT) and high-flexibility to meet credit needs to help the customers with much needed liquidity to revive their business activities and to bring back normalcy to their lives.
ii.The credit can be utilised for different purposes, such as expenses for agriculture and allied activities, business needs, health emergencies and personal needs.
iii.In addition to this, as Indians consider gold ornaments & coins as an asset, they can utilise their jewellery to avail credit for emergency cash. The loans are payable within a period of 1 to 3 years with flexible repayment options and can be availed from all designated branches across India.
iv.Gold loans for agricultural operations can be availed against gold ornaments with maximum borrowing limit of Rs 10 lakh for crop cultivation expenses. For allied agricultural activities, gold loan can be availed in Rs 20 lakh as maximum limit per borrower,
v.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 lakh and maximum limit for crop cultivation OD is Rs 10 lakh, and allied land-based activity is Rs 20 lakh.
vi.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.
vii. The 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.
About Canara Bank:
After the amalgamation of Syndicate Bank on April 1, Canara Bank has attained the position of 4th largest public sector bank in the country with a total business of Rs 15.53 lakh crore. It has 10,403 domestic branches, 13,448 ATMs and about 6,000 business correspondents.
Headquarters– Bangalore, Karnataka
Chairman– T.N. Manoharan
Managing Director & Chief Executive Officer(CEO)– L.V. Prabhakar