Canara Bank Gold Loan Interest Rate: Oct 2026 Guide

The Canara Bank gold loan interest rate is set as a benchmark plus a spread. Canara's Swarna scheme pages show RLLR + 1.10% from 2 October 2026, which works out to about 9.10% a year with RLLR at 8.00%. Its rate table still lists RLLR + 0.95% (about 8.95%). Agricultural gold loans are 1-year MCLR + 0.10%, about 8.90%.

Because Canara Bank's own pages give two different Swarna figures, treat both numbers below as a range and get the rate confirmed in writing on your sanction letter before you pledge. Once you have that figure, plug it into our gold loan interest calculator to see the rupee cost for your loan amount and tenure.

Canara Bank gold loan interest rate at a glance

Canara does not publish one flat percentage. It publishes a formula (benchmark + spread) and an effective date ("w.e.f.") for each scheme. To turn the formula into a percentage you need the benchmark value on the same day. The table below does that with the benchmark values Canara published for 12 September 2026, as checked on 7 October 2026.

The percentages in the last column are our arithmetic (benchmark + spread), not a figure Canara prints. They hold only while RLLR stays at 8.00% and the 1-year MCLR at 8.80%. If Canara revises either benchmark, the result changes even though the spread does not. You can check the formulas yourself on Canara's Loans Interest Rates page and on the individual Swarna scheme pages.

How Canara sets the rate: RLLR, MCLR and the repo link

Two benchmarks matter for Canara gold loans. The first is the Repo Linked Lending Rate (RLLR). Canara states that it moved the pricing of MSME and retail loans to RLLR, an external benchmark, with effect from 1 October 2019 in terms of Reserve Bank of India guidelines. As the name says, RLLR is tied to the RBI repo rate, so a repo rate change can feed through to Canara's RLLR and then to every loan priced as "RLLR + spread". Canara's RLLR document puts it at 8.00% with effect from 12 September 2026.

The second benchmark is MCLR (marginal cost of funds based lending rate), which Canara publishes separately for each tenor. Canara prices agricultural gold loans off the 1-year MCLR. Its MCLR schedule with effect from 12 September 2026 reads:

The spread is fixed when Canara publishes it; the benchmark underneath can move. Whether a revision applies to a loan you already hold during its 12-month term is a question to ask at the branch and to see written into your sanction terms.

Why Canara shows two figures (RLLR + 0.95% vs + 1.10%)

On 7 October 2026 the Loans Interest Rates table still grouped all Swarna schemes at "RLLR + 0.95% w.e.f. 12.08.2026". The Swarna Loan, Swarna Express, Swarna Overdraft and Swarna Monthly Interest Loan pages each showed "RLLR + 1.10% w.e.f. 02.10.2026". The scheme-page figure carries the later date, so it is probably the current one, but Canara's own pages disagree and we cannot tell you which one a branch will apply. That gap is 0.15 percentage points: about Rs 150 a year on every Rs 1 lakh borrowed.

There is a third, older set of numbers you may see elsewhere. The Swarna Monthly Interest Loan page still carries a legacy block showing up to 75% of appraised value, a maximum of Rs 35 lakh and RLLR + 0.95% with effect from 12.12.2025. That block is the likely origin of the "Rs 35 lakh" limit many comparison sites repeat. Canara's current scheme terms show a Rs 50 lakh ceiling, and the loan-to-value limits now follow RBI's 2025 tiers (covered below).

Swarna Loan, Express, Overdraft and Monthly Interest compared

Canara sells its retail gold loans under the Swarna name. The four schemes share the same security, the same loan range and one combined ceiling, but they differ in how and when you repay. Processing charges below are Canara's consolidated charges, valid till 31.03.2027, and exclude GST.

The Rs 50 lakh figure is a ceiling per borrower across all four schemes together, not per scheme. The security can be gold jewellery and gold coins, with coins capped at 50 g per customer.

Pick by cash flow. Swarna Express suits a short, known gap of up to six months and carries half the processing charge. Swarna Loan gives the full 12 months but asks for everything at the end, so the final payment is the largest. Swarna Monthly Interest Loan spreads the interest across the year, which keeps the closing payment close to the principal. Swarna Overdraft makes sense if you need money in stages, since a revolving limit lets you draw only what you use.

How much Canara Bank lends per gram of gold

The amount you get depends on two numbers: the value Canara puts on each gram of your gold, and the maximum loan-to-value (LTV) ratio the RBI allows. Canara publishes its "Value per gram of 22 Karat Gold for determination of LTV Ratio" as Rs 13,555 with effect from 29.09.2026. This figure is revised often, so check the date on the day you borrow.

RBI's 2025 LTV tiers

The RBI's Lending Against Gold and Silver Collateral Directions, 2025 (lenders had to comply by 1 April 2026) replaced the old flat 75% limit for consumption loans with tiers based on loan size. For bullet repayment loans, the LTV is measured on the total amount repayable at maturity (principal plus interest), not on the principal alone, and bullet consumption loans can run for at most 12 months. Gold is valued at the lower of the 30-day average or the previous day's closing price, using rates published by the India Bullion and Jewellers Association (IBJA) or a SEBI-regulated exchange.

The per-gram figures are a ceiling on the total amount repayable, calculated on net 22 carat gold weight. The bank appraises your jewellery itself, so stones, lower purity and wear all reduce the weight that counts.

Example: 10 g of 22 carat gold on a Swarna Loan

This is an illustration with simple interest assumed; Canara's appraisal, net weight and interest method decide the real numbers.

• Value: 10 g x Rs 13,555 = Rs 1,35,550.
• LTV cap: total repayable stays under Rs 2.5 lakh, so the 85% tier applies. 85% of Rs 1,35,550 = about Rs 1,15,217.
• Because a Swarna Loan is a 12-month bullet, that Rs 1,15,217 must cover principal plus a year's interest. At about 9.10%: Rs 1,15,217 / 1.091 = a principal of about Rs 1,05,607, with about Rs 9,610 of interest.
• At the rate-table figure of about 8.95%, the same cap allows a principal of about Rs 1,05,752.
• Processing charge at 0.30%: about Rs 317, plus GST.

The bullet rule explains the gap: money in hand is below 85% of your gold value because interest due at maturity counts inside the limit.

Fees and the full cost of a Canara gold loan

The interest rate is only part of the cost. Canara charges a processing fee on every Swarna scheme, and GST applies on top of it. Here is what Rs 1,00,000 costs over the full term, with simple interest assumed. GST on the fee is extra and is not included:

Two points cut the real cost. Canara states there is no prepayment penalty on Swarna Loan, so clearing early means paying interest only for the days you used the money (confirm how interest is computed on early closure). And the processing charge has a cap of Rs 3,000 (Rs 1,500 on Swarna Express), so on larger loans it shrinks as a share of the amount.

Eligibility, repayment and what happens if you don't repay

Swarna Loan is open to resident individuals and NRIs, with nomination available. Canara describes the documentation as minimal; the core requirement is the gold itself, which the branch appraises. The stated purpose is medical, domestic or other unforeseen needs that are not speculative.

Repayment follows the scheme you pick: a bullet within 12 months for Swarna Loan, within 6 months for Swarna Express, monthly interest for Swarna Overdraft and Swarna Monthly Interest Loan. If a Swarna Loan is not repaid within 12 months, Canara says it may start recovery, including auction of the pledged gold. If you cannot close on time, speak to the branch before the due date.

When you do repay in full, the RBI directions require the lender to return pledged gold no later than seven working days after full repayment. Where a delay is attributable to the lender, it must pay compensation of Rs 5,000 for each day of delay. The same directions cap pledged gold at 1 kg of ornaments and 50 g of coins per borrower; Canara's own coin cap of 50 g per customer matches the coin limit.

Canara vs SBI and Muthoot gold loans

Comparing lenders on headline rates alone is risky, because each one publishes in a different form. Canara publishes benchmark-plus-spread formulas; Muthoot Finance quotes scheme rates where rebates and repayment habits change what you pay. Our SBI gold loan interest rate guide breaks down the State Bank of India schemes, and the Muthoot gold loan interest rate explainer covers how its scheme rates and rebates work.

To compare fairly, line up five things for each lender: the formula and its effective date, the computed rate on the day you borrow, the processing charge and GST, the maximum tenure, and the per-gram value used for LTV. The cheapest-looking rate can still cost more if the tenure is shorter than you need or the per-gram value is lower.

Before you visit a Canara Bank branch, run your numbers through the gold loan calculator using both 8.95% and 9.10%, carry your jewellery and ID, and ask the branch to state the RLLR, spread and effective date on the sanction letter.

Written and reviewed by the The Gold Rate Today editorial team. Facts checked against primary sources; see the reference above.

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