Special Canara Bank gold loan business vertical launched - Know interest rate and other details

Canara Bank on Monday said that it has launched a special business vertical dedicated to gold loans. In a statement, the bank said that its gold loan products are designed keeping in mind the need for a quick, hassle-free experience for customers with a low-interest cost. The loans will help customers with much-needed funds to revive their business activities and to bring back normalcy in their lives. With this objective, the Bank has also launched a special Gold Loan campaign till 30th June, 2020.

D. Vijay Kumar, General Manager, Canara Bank said: "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 lower rate of interest (7.85 per cent/annum), minimum turnaround time (TAT) and high flexibility to meet their credit needs," he added.

Interest rate?

7.85 per cent per annum

How to avail loan?

The loan facility can be availed from all designated branches across the country, it said.

Payment?

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

Earlier, on Apr 6, Canara Bank had reduced its Marginal Cost of Funds Based Lending Rate (MCLR) on Loans and Advances across all tenors with effect from April, for the amalgamated entity. The bank had reduced interest rate by 35 basis points (bps) under one year tenor, 30 bps basis under 6 months tenor, 20 bps under 3 months tenor and 15 bps under overnight and one month tenors. With the cut, the tenor linked MCLRs of the Bank shall vary between 7.50 per cent and 7.85 per cent. The bank has also reduced its Repo Linked Lending Rate (RLLR) by 75 basis points from 8.05 per cent to 7.30 per cent.

After the merger with Syndicate Bank, the Canara Bank has now the fourth largest state-owned bank by assets. The amalgamation has become effective from April 1.