Talking of loan products, Canara bank has been a pioneer in offering various types of loans. For the sake of this discussion, we will focus specifically on Canara bank loan against security and Canara bank loan against gold products. More information on other loan products offered by Canara bank can be found at other pages of Money Super Bazaar.

The Canarabank loan against security is the kind of cash loan offered by the bank against a security of your investments in shares and debentures. The product is known as “CanCASH”. This type of Canara bank loan against security gives you an opportunity to use your investments as collateral and at the same time continue earning on them. So you do not need to sell off your shares etc., instead use them as a security to get the Canarabank loan against security. All existing customers of Canara bank with satisfactory track record are eligible for this the Canarabank loan against security. However, in an effort to reach out to new customers, the bank is not hesitant to offer the Canara bank loan against security to new customers with good credit history and good financial background. There are limits for the amount under Canarabank loan against security scheme that can be sanctioned against securities, and those are:

• For shares and debentures, up to a maximum of 50%
• For PSU bonds, up to 70% of market value
• For UTI and CBMF units, 50% of NAV

The maximum loan amount could go up to Rupees 20 lakhs if you also maintain your demat account with a DP of Canara bank. Amongst other charges, the processing charges for availing Canara bank loan against security are very nominal, i.e about 0.1% of the loan amount only.

The tenure of Canarabank loan against security could be up to 60 months. The rate of interest charged by the bank for this loan type is not enormous, which is the case for every nationalized bank. We recommend our readers to check the prevailing rates on Canara bank loan against security. They could vary time to time.

Another way of availing loan facility from Canara bank is the Canara bank loan against gold scheme, known as “SWARNA LOAN”. Here you can use your gold coins, ornaments etc. to get the loan from bank. The eligibility for Canara bank loan against gold is similar as that for loan against security. The repayment tenure for the Canara bank loan against gold is up to 24 months and the rates of interest are usually very reasonable. One nice part of availing Canara bank loan against gold is that the processing is quick and the document requirement is very minimal. So this is deemed as a quick way of generating finances when you need them most.