Canara Bank Personal Loan
Customers can borrow personal loans from Canara Bank, can receive funding between ₹10 lakh and select reasonable interest rates starting at 10.70% p.a. for term lengths up to seven years. The loan processing at this bank remains straightforward which leads to rapid loan authorization while needing minimal paperwork. Bank customers who maintain salary accounts who need fast money can obtain an instant personal loan accessible through up to ₹1 lakh to cover urgent expenses.
Features of Canara Bank Personal Loan
- Repayment tenure: Canara Bank gives borrowers financial planning flexibility with up to seven-year repayment term options.
- Repayment tenure: Very little documentation, easy and uncomplicated application procedure.
- No collateral: Under unsecured loan systems no form of security deposit is necessary.
- Quick approval: Loan funds transfer and approval proceeds swiftly between account holders.
Canara Bank Personal Loan Interest Rates
Canara Bank offers personal loan interest rates starting at 10.95% p.a., with variations depending on the specific loan scheme and the applicant's relationship with the bank. Although the exact credit score cut-off isn't specified, interest rates are adjusted based on the applicant’s credit risk grade.
Canara Bank Personal Loan Floating Interest Rates
1. Canara Budget-Individual
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
|---|---|
| CRG:1 | 13.90% |
| CRG:2 | 13.95% |
| CRG:3 | 14.45% |
| CRG:4 | 15.95% |
2. Canara Budget- Prime (with salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 10.95% |
| CRG:2 | 10.95% |
| CRG:3 | 10.95% |
| CRG:4 | 15.95% |
3. Canara Budget- Prime (without salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 11.95% |
| CRG:2 | 11.95% |
| CRG:3 | 11.95% |
| CRG:4 | 15.95% |
4. Canara Budget- Delight (with salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 11.95% |
| CRG:2 | 11.95% |
| CRG:3 | 11.95% |
| CRG:4 | Not Eligible |
5. Canara Budget Special Package
| Relationship with the bank | Interest rate (p.a.) |
|---|---|
| With salary tie-up | 13.65% |
| Without salary tie-up | 11.95% |
6. Canara Pension Loan
| Type of Pensioners | Rate of Interest (p.a.) |
|---|---|
| General Public | 11.75% |
7. Teachers’ Loan
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
|---|---|
| CRG:1 | 13.25% |
| CRG:2 | 13.30% |
| CRG:3 | 13.80% |
| CRG:4 | 15.30% |
Canara Bank Personal Loan Fixed Interest Rates
1. Canara Budget-Individual
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
|---|---|
| CRG:1 | 14.35% |
| CRG:2 | 14.40% |
| CRG:3 | 14.90% |
| CRG:4 | 16.40% |
2. Canara Budget- Prime (with salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 11.40% |
| CRG:2 | 11.40% |
| CRG:3 | 11.40% |
| CRG:4 | 16.40% |
3. Canara Budget- Prime (without salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 12.40% |
| CRG:2 | 12.40% |
| CRG:3 | 12.40% |
| CRG:4 | 16.40% |
4. Canara Budget- Delight (with salary tie-up)
| Credit Score based Risk Grade | Interest Rate (p.a.) |
|---|---|
| CRG:1 | 12.40% |
| CRG:2 | 12.40% |
| CRG:3 | 12.40% |
| CRG:4 | Not eligible for loan |
5. Canara Pension Loan
| Type of Pensioners | Rate of Interest (p.a.) |
|---|---|
| General Public | 12.50% |
6. Teachers’ Loan
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
|---|---|
| CRG:1 | 14.00% |
| CRG:2 | 14.05% |
| CRG:3 | 14.55% |
| CRG:4 | 16.05% |
https://www.livemint.com/loans/canara-bank-personal-loan-emi-calculator
Canara Bank Personal Loan EMI Calculator
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Rate of Interest
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Loan Duration
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EMI Payment Schedule
Canara Bank Personal Loans Interest Rates vs Other Banks
| Bank | Interest rate |
|---|---|
State Bank of India | 11.45% onwards |
HDFC Bank | 10.85% onwards |
Bank of Baroda | 11.15% onwards |
Axis Bank | 11.1% onwards |
ICICI Bank | 10.85% onwards |
IDFC Bank | 10.99% onwards |
IndusInd Bank | 10.49% onwards |
PNB Bank | 11.15% onwards |
Union Bank of India | 11.50% onwards |
Yes Bank | 11.25% onwards |
Bank of India | 10.85% onwards |
Kotak Mahindra Bank | 10.99% onwards |
Bandhan Bank | 9.47% onwards |
Federal Bank | 11.49% onwards |
Indian Bank | 10.75% onwards |
IDBI Bank | 11.00% onwards |
| AU Bank | Based on customer’s profile |
Source: Bank’s website
Canara Bank Personal Loan Processing Fees and Charges
Processing Charges: For personal loans under the Canara Budget scheme, the processing fee is up to 0.50% of the loan amount, with a minimum fee of ₹1,000 and a maximum of ₹5,000. However, customers benefit from a 50% discount on this processing fee. On the other hand, the Canara Pension scheme offers a more advantageous deal, as it does not impose any processing charges for pensioners.
Prepayment Charges: Canara Bank provides flexibility with prepayment. There are no prepayment charges on personal loans, allowing borrowers to repay their loans early without incurring additional costs. This policy ensures that customers have the freedom to manage their loan repayments according to their financial situations.
Types of Personal Loans Offered by Canara Bank
1. Canara Ready Cash
- Purpose: This pre-approved personal loan is designed for existing salaried customers of Canara Bank to address various personal needs, excluding speculative activities.
- Loan Amount: Ranges from ₹50,000 to ₹10 lakh
- Tenure: Available for 1 to 5 years
2. Canara Heal Healthcare Loan
- Purpose: This loan is intended to cover medical expenses for oneself or dependents, assisting in the settlement of hospital bills.
- Loan Amount: From ₹1 lakh to ₹5 lakh
- Tenure: Offered for 1 to 3 years
3. Canara Budget
- Purpose: Tailored for government and PSU employees, teaching professionals from prestigious institutes/universities, and employees from leading private sector companies.
- Loan Amount: Up to 6 months' gross salary or a maximum of ₹3 lakh, whichever is lower. Higher amounts may be approved in selective cases.
- Tenure: Up to 5 years
- Processing Fees: 0.5% of the loan amount, with a minimum fee of ₹1,000 and a maximum of ₹5,000
4. Canara Pension Loan
- Purpose: This loan is designed to support the personal financial needs of pensioners.
Loan Amount and Tenure:
For General Public Pensioners
| Age at the time of Loan sanction | Max Loan Amount (18 months Pension or) | Repayment Period | Age at the time of full Repayment |
|---|---|---|---|
| Below 70 years | ₹10 lakhs | Up to 5 years | Up to 75 years |
| 70 – 75 years | ₹5 lakhs | Up to 3 years | Up to 78 years |
For Defence Pensioners
| Age at the time of Loan sanction | Max Loan Amount (24 months Pension or) | Repayment Period | Age at the time of full Repayment |
|---|---|---|---|
| Below 50 years | ₹10 lakhs | Up to 7 years | 57 years |
| 50 – 60 years | ₹8 lakhs | Up to 5 years | 65 years |
| 60 – 70 years | ₹6 lakhs | Up to 4 years | 74 years |
| 70 – 75 years | ₹5 lakhs | Up to 2 years | 77 years |
For Family Pensioners (General/Defence Pensioners)
| Age at the time of Loan sanction | Max Loan Amount (18 months Pension or) | Repayment Period | Age at the time of full Repayment |
|---|---|---|---|
| Below 70 years | ₹5 lakhs | Up to 5 years | 75 years |
| 70 – 75 years | ₹3 lakhs | Up to 3 years | 78 years |
Processing Fees: NIL
Eligibility Criteria for Canara Bank Personal Loans
Canara Bank offers various personal loan schemes tailored to different segments of applicants. Each scheme has specific eligibility criteria to ensure that borrowers meet the bank's lending standards. Here's a detailed overview of the eligibility requirements for Canara Bank's personal loan offerings:
- Canara Ready Cash
Eligibility Criteria:
- Applicant Type: Available to existing salaried individuals of Canara Bank.
- Age Requirements: Applicants must be at least 21 years old at the time of application and no older than 55 years at loan maturity.
- Income Criteria: A minimum monthly income of ₹50,000 is required.
- Credit Score: Applicants should have a credit score of 700 or above for better chances of loan approval.
- EMI/NMI Ratio: The ratio of EMI (Equated Monthly Instalment) to NMI (Net Monthly Income) should be at least 25%, or ₹1,000 per month after accounting for existing EMIs and proposed loan EMIs.
- Canara Heal Healthcare Loan
Eligibility Criteria:
- Applicant Type: Open to existing salaried individuals, non-salaried individuals, and professionals. New salaried customers are also eligible.
- Age Requirements: Applicants must be between 21 and 55 years old at the time of loan application and maturity, respectively.
- Income Criteria for Salaried Applicants: A minimum monthly income of ₹50,000 is required.
- Income Criteria for Non-Salaried Applicants: Should maintain an average balance of ₹50,000 per month over the past six months.
- Net Take Home Salary: For salaried applicants, the Net Take Home Salary must be at least ₹20,000 per month after accounting for existing EMIs and proposed loan EMIs.
- Canara Budget Loan
Eligibility Criteria:
- Central/State Government Employees: Eligibility is extended to employees of central and state governments.
- Public Sector Undertakings (PSUs) and Joint Stock Companies: Employees of reputed PSUs and Joint Stock Companies are eligible.
- Reputed Corporates and Private Institutions: Employees of reputed corporates, public limited companies, and IT/BT companies can apply.
- Educational Professionals: Assistant Professors, Lecturers, College Professors, and Professors of Research Institutes and Universities are eligible.
- Canara Pension Loan
Eligibility Criteria:
- Public Sector Pensioners: Includes pensioners from Public Sector Undertakings and Corporate Pensioners.
- Pensioners: Available to all State and Central Government pensioners.
- Family Pensioners: Family pensioners of the above categories are eligible.
- Government Sector Undertakings Pensioners: Also includes pensioners from Government Sector Undertakings.
Each loan scheme has specific requirements to cater to different needs, ensuring that Canara Bank can offer tailored financial solutions to a broad range of customers.
Essential Documents for Canara Bank Personal Loans
Applying for a personal loan with Canara Bank involves preparing several important documents. Ensuring that you have the necessary paperwork ready can streamline the approval process and increase your chances of securing the loan. Here's a comprehensive list of documents required for a personal loan application with Canara Bank:
- Completed Loan Application Form: Make sure to fill out the application form thoroughly and accurately. Include two recent passport-sized photographs with your application.
- Promissory Note/Promissory Note Cover Letter: This document outlines your commitment to repay the loan and should be provided as part of your application.
- Proof of Income: You will need to submit a recent salary certificate. Additionally, provide your Form 16, Income Tax Returns (ITR), or Income Tax Assessment Order (ITAO) for the past three years to verify your financial stability and income.
- Co-obligation: Depending on the specifics of your loan and your financial profile, you might need a co-obligant. This is typically required if the bank deems it necessary based on your creditworthiness.
- For Pensioners: If you are a pensioner applying under the Canara Pension scheme, submit the loan application with two passport-sized photographs. Also, include a Delivery Letter to DPN (Delivery Payment Note). Note that the requirement for a co-obligation may be waived in some cases.
By gathering these documents ahead of time, you can expedite the loan application process and ensure that your submission is complete and accurate.
Canara Bank Personal Loan FAQs
What is the maximum repayment tenure for Canara Bank personal loans?
The Canara Budget loan has a maximum tenure of 60 months, while the Canara Teachers Loan has a maximum tenure of 48 months.
What is the minimum salary required for a Canara Bank personal loan?
While Canara Bank doesn’t specify a minimum salary, a monthly income of ₹15,000 is generally considered.
What is the minimum credit score needed for a Canara Bank personal loan?
Canara Bank doesn’t set a specific credit score requirement, but a score of 750 or above is favourable for better loan terms.
Why is co-obligation required for Canara Bank personal loans?
Co-obligation is required for unsecured personal loans as it provides additional security for the bank in case of default, given there’s no collateral involved.
What is the turnaround time for Canara Bank personal loan disbursal?
Typically, Canara Bank disburses personal loans within 2-7 working days of application. They also offer instant online loans up to ₹1 lakh for salary account holders.
Does Canara Bank offer pre-approved instant personal loans?
Yes, Canara Bank provides online instant personal loans from ₹10,000 to ₹1 lakh for salary account holders.