Canara Bank Personal Loan
Established in 1906, Canara Bank is one of the oldest Indian banks. It was nationalized in 1969, by the Indian government. It has a wide network of 5,784 branches and more than 9,153 ATMs spread across India.
Individuals can take loan up to amount of Rs 3 lakh or six months gross salary, whichever is lower. Loan repayment has to be made in equal installments, within 60 months. The bank aids the people in need of funds by providing personal loans. All salaried individuals can seriously think, with an open mind, to apply for the personal loan.
Canara Bank offers personal loans of up to Rs 3 lakh under the Canara Budget and Canara Teachers Loan schemes.
The loans can be availed at interest rates starting at 12.05% p.a. with nominal processing fee.
The processing fee of 0.5% of the loan amount subject to a minimum of INR 1000 and maximum of INR 5000 is charged.
Canara Bank Personal Loan Details:
| Interest Rate | 12.05% p.a. onwards |
| Loan Amount | Up to Rs.3 lakh or 6 to 10 times of gross salary |
| Loan Tenure | 3 months to 60 months |
| Processing Fee | 0.5% to 1% of loan amount |
Features of Canara Bank personal loan
- Easy access to loans for various reasons like marriage, home renovation, higher education, etc.
- Affordable interest rates and other charges
- Minimal documentation process
Compare Canara Bank personal loans
There are two different types of personal loan products offered by Canara Bank. These loans are mainly intended for customers to take care of their immediate financial requirements.
- Canara Budget
- Canara Teachers Loan
Let’s compare the interest rate and other features of these loans.
| Canara Budget | |
|---|---|
| Interest Rate | 12.40% to 14.45% |
| Loan Amount | Maximum of Rs.3 lakh or 6 times the monthly gross income (whichever is less) is offered as loan under this scheme. |
| Benefits | Minimal documentation with loan sanctioning within just a few weeks |
| Canara Teachers Loan | |
|---|---|
| Interest Rate | 12.05% to 14.10% |
| Loan Amount | A maximum loan amount of Rs.3 lakh or 10 times the gross monthly income (whichever is less) is available under this scheme. |
| Benefits | Minimal documentation with loan sanctioning within just a few weeks |
Canara Bank Personal Loan Interest Rates
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
| CS:1 | 11.25% |
| CS:2 | 11.30% |
| CS:3 | 11.80% |
| CS:4 | 13.30% |
Canara Budget Loan – Special Package
| Type of Applicants | Rate of Interest (p.a.) |
| Applicants having salary accounts with the bank | 11.30% |
| Applicants not having salary accounts with the bank | 12.30% |
Canara Pension Loan
| Type of Pensioners | Rate of Interest (p.a.) |
| General Public | 10.20% |
Teachers’ Loan
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
| CS:1 | 10.90% |
| CS:2 | 10.95% |
| CS:3 | 11.45% |
| CS:4 | 12.95% |
All Other Personal Loans
| Credit Score based Risk Grade | Rate of Interest (p.a.) |
| CS:1 | 12.40% |
| CS:2 | 12.45% |
| CS:3 | 12.95% |
| CS:4 | 13.90% |
Canara Bank Personal Loan Processing Fees and Charges
| Scheme | Processing Charges |
| Canara Budget | 0.5% (Rs 1,000-Rs 5,000) |
| Canara Pension | NIL |
| Teachers’ Loan | 1% (minimum Rs 50) |
The processing fees associated with Canara Bank personal loans are given as follows:
| Canara Budget | 0.5% of the loan amount must be paid as processing fees. This is subject to a minimum of Rs.1,000 and maximum of Rs.5,000. |
| Canara Teachers Loan | 1% of the loan amount is charged as processing fee under this scheme. This is subject to a minimum of Rs.50. |
Eligibility Criteria for Canara Bank Personal Loan
Canara Budget
- Central/State Government employees
- Employees of reputed PSUs/Joint Stock Companies
- Reputed Corporates/Public Limited Companies/Private Institutions/IT/BT Company employees
- Assistant Professors/Lecturers/College Professors/Professors of Research Institute and Universities
Canara Pension – General Public
- All State/Central Government Pensioners
- Pensioners of Public Sector Undertakings/Corporate Pensioners
- Pensioners of Government Sector Undertakings
- Family pensioners of all the above categories
Teachers’ Loan
- Teaching/Non-teaching staff working in schools/colleges and drawing salary from Canara Bank
- An undertaking letter from salary disbursing authority at Block/District level stating that the salary account cannot be shifted from the branch without an NOC
- The net take home after EMI deduction should be at least 30% of gross salary or Rs 10,000 whichever is higher
Canara Bank Personal Loan EMI Calculator:
[CP_CALCULATED_FIELDS id=”8″]
How the EMI calculation works?
Illustration
Let’s assume that you take a personal loan from Canara Bank for Rs.1 lakh. The interest rate applicable to this loan is 13% p.a. for a repayment tenure of 1 year. The EMI information and repayment schedule for the loan is given as follows:
| Months | Principal | Interest | EMI | Balance | Percentage of loan paid to date |
|---|---|---|---|---|---|
| Apr | Rs.7,848 | Rs.1,083 | Rs.8,932 | Rs.92,152 | 7.85% |
| May | Rs.7,933 | Rs.998 | Rs.8,932 | Rs.84,218 | 15.78% |
| Jun | Rs.8,019 | Rs.912 | Rs.8,932 | Rs.76,199 | 23.80% |
| Jul | Rs.8,106 | Rs.825 | Rs.8,932 | Rs.68,093 | 31.91% |
| Aug | Rs.8,194 | Rs.738 | Rs.8,932 | Rs.59,899 | 40.10% |
| Sep | Rs.8,283 | Rs.649 | Rs.8,932 | Rs.51,616 | 48.38% |
| Oct | Rs.8,373 | Rs.559 | Rs.8,932 | Rs.43,243 | 56.76% |
| Nov | Rs.8,463 | Rs.468 | Rs.8,932 | Rs.34,780 | 65.22% |
| Dec | Rs.8,555 | Rs.377 | Rs.8,932 | Rs.26,225 | 73.78% |
| Jan | Rs.8,648 | Rs.284 | Rs.8,932 | Rs.17,577 | 82.42% |
| Feb | Rs.8,741 | Rs.190 | Rs.8,932 | Rs.8,836 | 91.16% |
| Mar | Rs.8,836 | Rs.96 | Rs.8,932 | Rs.0 | 100.00% |
Compare Canara Bank personal loan with loans from other lenders:
| Fees and charges | Canara Bank Personal Loan | HDFC Bank Personal Loan | Citibank Personal Loan | Aditya Birla Capital |
|---|---|---|---|---|
| Interest rate | 12.05% p.a. onwards | 10.75% p.a. onwards | 10.50% p.a. onwards | 14% p.a. onwards |
| Processing fee | 0.5% + GST | 2.5% + GST | 0.50% to 3.00% + GST | At the discretion of the lender |
| Foreclosure charges | Contact the bank for details | 2% to 4% of the outstanding loan amount | 4% of the principal outstanding | Contact the bank for details |
| Late payment fee | Contact the bank for details | 2% of the overdue amount per month | Contact the bank for details | At the discretion of the lender |
Types of Personal Loans from the Canara Bank:
Canara Budget
- Purpose: To meet the personal or domestic needs of the applicant, other than speculative needs
- Loan Amount: 6 months’ gross salary or up to Rs 3 lakh, whichever is lower
Higher quantum considered in selective cases
- Tenure: Up to 5 years
- Processing Fees: 0.5% of the loan amount subject to Rs 1,000- Rs 5,000
Canara Pension- General Public
- Purpose: To meet the personal needs of the pensioner
- 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 | Rs 10 lakhs | Up to 5 years | Up to 75 years |
| 70 – 75 years | Rs 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 | Rs 10 lakhs | Up to 7 years | 57 years |
| 50 – 60 years | Rs 8 lakhs | Up to 5 years | 65 years |
| 60 – 70 years | Rs 6 lakhs | Up to 4 years | 74 years |
| 70 – 75 years | Rs 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 | Rs 5 lakhs | Up to 5 years | 75 years |
| 70 – 75 years | Rs 3 lakhs | Up to 3 years | 78 years |
- Processing Fees: NIL
Teachers’ Loan
- Purpose: To meet the personal or domestic needs other than speculative purposes
- Loan Amount:
6 months gross salary subject to a maximum of Rs 2 lakh (sanctioned by branch manager in charge of small, medium and large branches as well as Senior Managers/Credit Managers in VLBs/ELBs)
10 months gross salary subject to a maximum of Rs 3 lakh (sanctioned by CM/VLB, AGM/ELB, DM/AGM-RO-CAC, DM-CO-CAC/AGM-CO-CAC, and above authorities)
- Tenure: Up to 4 years
- Processing Charges: Up to 1% of the loan amount with a minimum of Rs 50
Instant Personal Loan
- Purpose: To meet the personal/domestic requirements of salary account holders
- Loan Amount: Rs 10,000-Rs 1 lakh
Documents Required for Canara Bank Personal Loan
Canara Budget
- Completely filled loan application with 2 passport size photographs
- Pronote/Pronote Cover Letter
- Recent salary certificate and Form 16/ITR/ITAO for last 3 years
- Co-obligation
Canara Pension (General Public)
- Loan application with 2 passport size photographs
- Delivery letter to DPN
- Co-obligation, unless waived
Teachers’ Loan
- Application form with 2 passport size photographs
- Co-obligation
- Recent salary certificate and Form 16
- Pronote/Pronote Covering Letter
Canara Bank Personal Loan Summary
Canara Bank is one of the renowned public sector banks in India. The bank has different types of loan products to help customers who need financing for various purposes. The personal loan products offered by the bank are designed to provide instant relief against a person’s domestic needs. The money obtained from a Canara Bank personal loan could be used for anything ranging from financing of your home renovation to taking care of an unexpected medical expense. The personal loan offered by the bank starts with an interest rate of 13% for non-government employees.