Canara Bank Personal Loan

Overview

Whether you are Salaried-Employee, a Self-Employed Professional, or a Self-Employed Businessman, Canara Bank offers you funds from Rs. 1 Lacs to as high as Rs. 20 Lacs within 7 days of approval. The Processing charges are ranging from Zero to up to Rs 5,000 and the Interest Rate charged by Canara Bank on Personal loans is ranging between 10.90% to up to a maximum of 13.90% per annum and the tenure to repay your loan is 12 months to up to a maximum of 72 months. 

Canara bank provides various schemes under which you can avail of loans with a minimal fee like Canara Budget loan, Canara Teachers loan, Canara Pension – General Public, Canara Pension – Ex-Employees. This bank does not charge any Prepayment fees as compared to other competing banks such as Federal Bank and SBI where you have to pay a fee of Zero to up to 3% of the prepaid amount.

Canara Bank is a good fit for you if?

Pensioners & Family Pensioners of Canara Bank

If you are a pensioner and waiting for your pension to accomplish your goals. Then, Need not worry about your financial condition as in this scheme, Canara Bank provides personal loans for all Government Pensioners and family pensioners including Government Undertakings and Public Sector Undertakings.

Ex-Employees & their family pensioners

If you are an Ex-Employee of Canara Bank and needs funds to fulfill your requirements then you can take advantage of this ‘’Canara Pension – Ex-employees scheme’’ which provides personal loan to Ex-Employees of this bank. It can lend up to a maximum of 5 lacs to Canara Bank Pensioners including family pensioners.

Government Employees

Canara Bank Personal Loan could be a good choice for you if you are a government employee who is serving the government and needs money for his / her requirements. Now, it’s your turn to be served by the Canara Bank as it avails funds as high as equal to a gross monthly salary of 6 months or a maximum Rs 3 Lacs with a tenure ranging from 12 months to up to a maximum of 60 months.

Canara Bank Personal Loan at a glance

Annual Interest Rate10.90% – 13.90% per annum
Loan Term12 Months – 72 Months
Loan AmountRs. 1 Lac – Rs. 3 Lacs
Max Rs. 5 Lacs for Pensioners
Time of FundingWithin 7 days
Pre-Closure ChargesNil

Canara Bank provides a Personal Loan of minimum Rs. 1 Lacs to up to as high as Rs. 20 Lacs within 7 days of approval. The tenure of this type of loan is 12 months to up to 72 months and the interest rate charges range between 10.90% to up to 13.90% per annum. Here, the Pre-Payment charges are Nil which is a good thing as compared to other competing banks such as Federal Bank which charges Prepayment fees of up to 2% of the outstanding amount.

Why Choose Canara Bank?

Low Income Criteria

Unlike many other competing banks and financial institutions such as HDFC Bank, Axis Bank, Bajaj Finserv it provides loans to the applicants who are earning a monthly income of Rs. 15,000 or above, the income criteria for Canara Bank is low as it provides loans to the applicants who are earning a minimum of Rs.10,000 per month.

Zero Processing Charges for Pensioners

Availing loan from Canara Bank personal loan could be a good alternative for you as no processing charges are applicable for pensioners and family pensioners as compared to other banks and financial institutions such as Indiabulls which charges Processing Fees ranging from 1.50% to up to 5% of the loan amount and Capital First which charges up to 1.50% of the loan amount and in case of HDFC, the Processing Fees is up to 2.50% of the loan amount.

Low Processing Charges for Salaried

You can take advantage of Canara Bank personal loan if you are a salaried employee who needs a loan with the lowest charges as this is one of the banks which charges the lowest processing fees in the industry, charging 0.50% of the loan amount ranging from minimum Rs 1,000 to a maximum of Rs. 5,000 as compared to other banks such as HDFC Bank which charges a processing fee of up to Rs. 2.50% of the loan amount subject to a minimum of Rs. 1,999 and a maximum of Rs. 25,000 for salaried applicants which is quite a high amount.

What to watch out for?

Canara Salary Account Mandatory

If you are thinking of availing loan from Canara Bank then you must know that the salary account is mandatory to avail the Canara budget loan, as compared to other competing banks or financial institutions where you can avail a personal loan without having any salary account with the bank.

Co-Obligation is Mandatory

While applying for a personal loan from Canara Bank you must know that the Co-Obligation is necessary to be provided to avail the loan, which means in case you are unable to pay the loan, your guarantor will have to pay your loan amount, unlike other competing banks such as IndusInd Bank where it is not mandatory to have a guarantor.

Low Maximum Lending Amount Limit

As compared to other banks such as HDFC Bank, Axis Bank, SBI Bank, the maximum lending amount a salaried employee can avail is limited to Rs. 3 Lacs and Pensioners can avail up to Rs. 5 Lacs which is quite a low amount as in the case of TATA capital, you can avail loan up to a maximum of Rs. 25 lacs, Rs. 35 lacs in case of Bajaj finserv and Rs. 25 lacs in case of Capital First.

Compare Canara Bank Personal Loans to Other Banks

Bank NameCanara BankSBIFederal Bank
APR10.90% – 13.90%9.60% – 13.85%11.49% – 14.49%
Loan Term12 Months – 72 Months12 Months – 60 Months12 Months – 48 Months
Maximum Lending AmountRs. 3 Lacs
Rs. 5 Lacs for Pensioners
Rs. 20 LacsRs. 10 Lacs
Processing FeeZero to upto Rs. 5,0001% of the Loan Amount0.50% of the loan amount
Min Rs. 500
Time to FundingWithin 7 daysWithin 2 to 3 daysWithin 7 days
Pre-Closure FeeNilZero to Up to 3% of the Loan Amount2% of the outstanding amount

Coming to the comparison part, Canara Bank offers a maximum of Rs. 3 Lacs and Rs. 5 Lacs in case of Pensioners within 7 days of approval, while SBI lends a maximum of Rs. 15 lakhs within 2 to 3 days of approval and Federal Bank lends up to a maximum of Rs 10 Lacs within 7 days of approval. Canara Bank charges a processing fee of Zero to up to Rs 5,000 while SBI charges 1% of the loan amount and in the case of Federal Bank, it charges 0.50% of the loan amount and a minimum of Rs 500. The typical APR in the case of Canara Bank ranges from 10.90% to up to a maximum of 13.90% per annum, while 10.75% to up to a maximum of 15.15% per annum, 11.49% to up to a maximum of 14.49% per annum. 

Unlike other banks such as SBI where it is restricted to repay the loan amount within a tenure of 12 months to a maximum of 60 months and 12 months to a maximum of 48 months in the case of Federal Bank, you are allowed to repay your loan within 12 months to as long as 72 months, which is quite a long tenure to repay your loan easily. There are no Pre-Closure charges charged by the Canara Bank while you have to pay a fee of Zero to up to 3% of the prepaid amount in case of SBI and 2% of the outstanding expenses in the case of Federal Bank.

Canara Bank Personal Loan Eligibility Criteria

Minimum Age21 Years
Maximum Age58 Years
Minimum SalaryRs. 10,000
Exisiting Relationship with BankSalary Account (for Salaried)
  • The minimum age of the applicant should not be less than 21 years to more than 58 years at the time of loan application.
  • The minimum net take-home salary of salaried applicants should be a minimum of Rs. 10,000 per month after meeting the proposed EMI, subject to 30% of gross salary income for teachers and 25% of the gross salary income of others.
  • Salaried Applicant should be drawing salary through Canara Bank Salary Account.

Canara Bank Personal Loans Schemes

Canara Budget Loan (Personal Loan for Salaried)

Canara Bank offers Budget loans to different groups of people such as for Salaried employees applicants, it offers personal loans for permanent salaried employees of government organizations, Public Sector Undertakings, Joint Stock companies, or Information Technologies Companies / British Telecom companies. The applicants can also be a Lecturer / Assistant Professor / Professor of College / Research Institutes and Universities. It avails funds as high as equal to a gross monthly salary of 6 months or a maximum of Rs. 3 Lacs with a tenure ranging from 12 months to up to a maximum of 60 months.

It charges an interest rate which is equal to 12.90% if the salary ties up with Canara Bank and the interest rate will be equal to 13.90% if no salary ties up with Canara bank and the interest rate will be equal to 10.90% for BSNL employees. The processing charges equal 0.50% of the loan amount subject to a minimum of Rs. 1,000 and charges a maximum of Rs. 5,000.

Documents

  • Latest Salary Certificate along with Form No.16 or ITR/ITAO for the last 3 years.
  • Loan Application with 2 passport size photographs and KYC Documents
  • Pronote / Pronote Covering Letter
  • Documents for the co-obligation

Canara Teachers Loan (Personal Loan for Teachers)

If you are a teacher helping students to achieve their financial goals and to fulfill their dreams but because of your low income you are not able to fulfill your dreams then have a look at Canara Teachers Loan which provides loans for teaching / not teaching applicants working in school or college and who are drawing salary through Canara Bank and have provided an undertaking letter from salary disbursing authority at District / Block level that they can not shift the salary account to another bank without NOC from the Canara Branch.

From Canara Bank personal loan for teachers, you can avail amount as high as up to 10 months net gross salary or a maximum of Rs. 3 Lacs with processing fees which is equal to 1% of the offered loan amount or a minimum of Rs. 50. The interest rate charged will be equal to 12.55% per annum and the tenure to repay your loan ranges from 12 months to up a maximum of 48 months.

Documents

  • Copy of Passport or PAN Card for Signature Proof
  • The last 3 months’ salary slip along
  • Latest Salary Certificate along with Form No.16
  • Documents for co-obligation
  • Pronote/Pronote Covering Letter
  • Loan Application with 2 passport size photographs and KYC Documents

Canara Pension – General Public (Personal Loan for Pensioners)

Waiting for your pension to accomplish your goals? Need not worry about your financial condition as in this scheme, Canara Bank provides personal loans for all Government Pensioners and family pensioners including Government Undertakings and Public Sector Undertakings. You can avail personal loan as high as 15 months pension or a maximum of Rs. 5 Lacs where net take-home pay should be 40% of the gross monthly pension.

The interest rate charged by Canara bank equals 11.80% per annum and the tenure to repay your loan ranges from 12 months to up to a maximum of 60 months if the age of the pensioner is above 65 years and 12 months to up to a maximum of 72 months if the age of the pensioner is below 65 years at the time of loan application. Canara Bank does not charge any processing fees which is a plus point as compared to other competing banks as in the case of Federal Bank the processing charges range from 0.50% of the loan amount or a minimum of Rs. 500.

Document for Pensioners:

  • Delivery Letter to Demand Promissory Note
  • Loan Application with 2 passport size photographs and KYC Documents
  • Documents for co-obligation

Canara Pension – Ex Employees (Personal Loan for Retired Employees)

If you are an Ex-Employee of Canara Bank, then this scheme is made only for you as this scheme provides Pensioner loans for ex-employee and family pensioners of Canara Bank. You can avail of Rs. 40,000 to up to a maximum of Rs. 5 Lacs or if you are taking a loan to pay the premium of IBA Group Mediclaim Insurance Policy then you can lend money equal to the value of the annual premium. The interest rate charged on this will be equal to 11.80% per annum.

You can avail personal loan as high as your 15 months pension or maximum Rs. 5 Lacs, where your net take-home pay should be 40% of the gross monthly pension. The tenure to repay your loan ranging from 12 months to up to a maximum of 60 months if the age of the pensioner is above 65 years and 12 months to up to 72 months if the age of the pensioner is below 65 years at the time of loan application or 10 EMIs irrespectively of the applicant’s age.  Here the processing charges are Nil as compared to other competing banks or financial institutions such as Federal Bank where the processing charges for personal loan is 0.50% of the loan amount and minimum Rs. 500 While Bandhan Bank charges 1% of the loan amount plus GST as applicable applicable. So you can take advantage of this scheme with minimum charges.

Document

  • Delivery Letter to Demand Promissory Note
  • Loan Application with 2 passport size photographs and KYC Documents
  • Documents for co-obligation
  • Document for authorization to debit the account

Canara Bank Personal Loan Interest Rates

Personal LoanApplicable Interest Rate
Canara Budget Loan10.90% – 13.90% per annum
Canara Teachers Loan12.55% per annum
Canara Pension – General Public11.80% per annum
Canara Pension – Ex-Employees11.80% per annum

Canara Bank charges Interest rates on personal loans based on different schemes such as the Canara Budget loan, the Canara Teachers loan, Canara Pension – General public loan, Canara Pension – Ex-employee loans. The applicable rate of interest charged by Canara Bank Canara Budget loan ranging from 10.90% to up to a maximum of 13.90% per annum while 12.55% per annum for Canara Teachers loan, 11.80% per annum for Canara Pension – General Public loan, and 11.80% per annum for Canara Pension – Ex-employees loan.

Canara Bank Personal Loans Fees & Charges

Type of ChargesApplicable Charge
Processing ChargesFor Salaried Employees:
0.50% of the loan amount
Min Rs. 1,000 to Max Rs. 5,000.

For Teachers:
1% of the offered loan amount
Minimum Rs. 50.

For Pensioners:
Nil
Prepayment ChargesNil
Penal Interest2% per month on the overdue amount

The processing fees charged by Canara bank are different for different applicants such as for Salaried Employees, the processing fees charged by Canara Bank is 1% of the offered loan amount or a minimum of Rs. 50 while for teachers the processing fee is 1% of the offered loan amount or a minimum of Rs. 50 and for pensioners, the processing charges are Nil. The Foreclosure charges are Nil as compared to other competing banks or financial institutions which charge a high amount of fees as in the case of Federal Bank the applicable interest rate charged by the bank is 2% of the outstanding amount.

Canara Bank charges Penal fees of up to 2% on the overdue amount which differs from other banks in case of Bandhan Bank the penal charges are 24% per annum or 2% per month on the overdue amount while in the case of Federal Bank the Penal charges are based on the different categories such as if payment is due for up to 30 days from the actual payment due date then 2% of the overdue amount is charged, while if the payment is due for more than 30 days to up to 60 days from the actual payment due date then 2% of the overdue amount is charged plus 0.50% for the remaining portion of the loan.

If the payment is due for more than 60 months from the actual payment due date then 2% of the overdue amount is charged plus 1% for the remaining portion of the loan. If the payment is due for more than 90 days from the actual payment due then the amount charged by the Federal Bank is 2% on the entire balance outstanding and the Part-payment charges are also Nil.

After I Applied?

Check loan status offline:

  • Click here to go to the status tracking page
  • Enter your application number
  • Click on ‘’proceed’’

FAQs

MCLR Rate?

8.45% for one year period

Do I need to provide any security to avail of the loan?

Yes, you have to provide a co-obligation equal to the loan amount as security.

In the case of Loan to Pensioners, Co-obligation of the spouse (wherever there is a provision for family pension) or any other person/pensioner good for the amount, if necessary, may be stipulated by the sanctioning authority.

In the case of Loan to Family Pensioners, Third Party Guarantee / Co-Obligation good for the amount should be obtained invariably.

In the case of the Canara Cash Loan, the security of the shares/debentures/bonds as per the approved list circulated from time to time. Securities can be replaced/substituted during the currency of the loan up to 10 times. Nominal charges for substitution of securities.

What is the interest rate slab applicable for Canara Bank Budget Loan?

Canara Bank offers an interest rate of 12.70% for budget loans with salary tie-ups and 13.70% for budget loans without salary tie-ups. A special interest rate of 10.70% is offered to BSNL employees.

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