Canara Bank Personal Loan

Features and Benefits of Canara Bank Personal Loan

With a core vision to emerge as a global bank and be a responsive corporate social citizen, Canara Bank was founded in 1906. Headquartered in Mangalore, it has created a web of networks with over 9,734 branches spread across the country. 

Canara Bank offers a diverse range of loan products customised for every individual. The cost-effective and zero-collateral personal loans provide financial assistance to salaried individuals at economic interest rates with extended repayment tenure and rapid disbursals. 

• Attractive interest rates, ranging from 11.65% p.a.
• High-value loans of up to INR 10 lakhs
• Loan tenure of up to 7 years

Listed below are the features of Canara Bank Personal Loan.

Zero Collateral

Collateral is the borrower’s pledge of his property to avail of a loan. Canara Bank offers zero-collateral personal loans at competitive interest rates to its customers.

Attractive Interest Rates

Interest rates have a significant impact on the EMIs payable. The bank will decide the interest rate after thoroughly evaluating your documents and financial background. Canara Bank offers affordable loans at nominal interest rates, ranging from 11.65% p.a.

Higher Quantity Loans

Personal loans offer financial assistance for any unprecedented expenses. Canara Bank provides a maximum loan amount of up to INR 10 lakhs so that the borrower’s financial needs are under check.

Extended Loan Tenure

The loan tenure is the time provided to the borrower to repay his outstanding loan. Canara Bank offers a tenure of up to 7 years that helps you repay your loan in your comfort.

Minimal Processing Fees

Processing fees are non-refundable fees charged by the banks to process your loan application. Canara Bank charges a minimal fee of 0.5% to 1% on the outstanding loan amount to process your loan.

Canara Bank Personal Loan Eligibility Criteria

To avail of a personal loan at Canara Bank, you must meet specific eligibility criteria set by the bank.

Canara Budget

• Canara Bank offers customised personal loans to salaried individuals. An individual working in a reputed joint-stock company, PSU, government organisations (central/state), IT companies, biotechnology companies or professors (college/research institute/universities) can apply for Canara Budget.
• The salary account of the individual should be maintained with Canara Bank.
• The applicant must have a minimum of INR 10,000 or 25% of his salary in his bank account after paying the EMI.

Canara Teachers Loan

• This loan is exclusively designed for the teaching and non-teaching staff working in schools or colleges.
• The teachers should maintain their salary account with Canara Bank.
• After paying the EMI, the applicant must have a minimum of INR 10,000 or 30% of his salary.

Canara Pension

• This loan is customised for all central and state governments, public sector undertakings, corporate pensioners and family pensioners of the retired individuals.
• The retired individual must have a bank account with Canara Bank to avail of this loan.
• The family pensioners may also avail of this loan.

Canara Bank Personal Loan Fees and Charges

Canara Budget	Processing Fees 0.5% of the loan amount Ranging from INR 1,000 to INR 5,000
Canara Teachers Loan	Processing Fees 1% of the loan amount Subject to a minimum of INR 50
Canara Pension	Processing charges are waived for pensioners

Canara Bank Personal Loan Interest Rates

Canara Bank offers custom-built personal loans to its customers. These loans are specially personalised to meet the financial prerequisites of every individual. The interest rates charged on personal loans vary from individual to individual according to their financial standing and creditworthiness.

Canara Budget Individual

Credit Risk Grading	Rate of Interest
CRG: 1	11.65% p.a.
CRG: 2	11.70% p.a.
CRG: 3	12.20% p.a.
CRG: 4	13.70% p.a.

Canara Budget Special Package

With Salary Tie-up	11.70% p.a.
Without Salary Tie-up	12.70% p.a.

Canara Teacher Loans

Credit Risk Grading	Rate of Interest
CRG: 1	11.30% p.a.
CRG: 2	11.35% p.a.
CRG: 3	11.85% p.a.
CRG: 4	13.35% p.a.

Canara Pension

Category	Rate of Interest
General Public	10.60% p.a.
Retired Employees	9.40% p.a.

Factors Affecting Canara Bank Personal Loan Interest Rates

The financial institutions don’t offer the same interest rate to every borrower. The interest rates are determined by the borrower’s credit score and financial background. Check out the factors affecting your personal loan interest rate.

Credit Score

The credit score of an applicant reflects his credit history and repayment capacity. It is a three-digit numeric character ranging from 300 to 900. A score above 750 can fetch you lower interest rates and vice versa.

Income of the Applicant

The applicant’s income plays a significant role in determining the interest rates. An individual with a stable income at a reputed organisation can avail of affordable personal loans at low-interest rates compared to an individual with an unstable job.

Loan Tenure

The loan tenure determines the EMIs and the interest payable on the loan. If the applicant opts for a longer-term, it gives the bank clarity of revenue for a longer tenure, thus enabling lower interest rates.

Types of Canara Bank Personal Loan

Canara Bank broadly categorised personal loans into Canara Budget, Canara Teacher’s Loan, and Canara Pension. Each one of these is customised for a particular section of individuals.

Canara Budget

Canara Budget is a personal loan that assists borrowers in meeting urgent financial needs. The unsecured loan is customised for salaried individuals working in private limited companies and public sector undertakings with a salary account in Canara Bank. 

Canara Bank offers overdraft facilities to top executives in central and state government, reputed private organisations and public sector undertakings. A maximum of INR 3 lakhs subject to renewal once in two years is offered. 

Maximum loan amount	Six months salary or INR 3 lakhs (whichever is less)
Loan tenure	5 years
Overdraft	Renewal in 2 years

Canara Teachers Loan

The Canara Teachers Loan provides financial aid to the teachers and non-teaching staff working in schools and colleges. It is an unsecured loan that can be availed to meet any unforeseen personal expenses and credit card bills.

Maximum loan amount	small, medium and large branches: 6 months gross salary to a maximum of INR 2 lakhs Top executives: 10 months gross salary to a maximum of INR 3 lakhs
Tenure	4 years

Canara Pension

Canara Bank offers tailor-made loans to pensioners to meet their medical and other personal expenses after retirement. An individual must have a bank account in Canara Bank to avail of this loan.

General Public Pension

Age on the date of loan sanction	Maximum Loan	Repayment Tenure	Age on the date of maturity
Below 75 years	Pension of 18 months or INR 10 lakhs	5 years	75 years
70 – 75 years	Pension of 18 months or INR 5 lakhs	3 years	78 years

Defence Pensioners

Age on the date of loan sanction	Maximum Loan	Repayment Tenure	Age on the date of maturity
Below 50 years	Pension of 24 months or INR 10 lakhs	7 years	57 years
50 – 60 years	Pension of 24 months or INR 8 lakhs	5 years	65 years
60 – 70 years	Pension of 24 months or INR 6 lakhs	4 years	74 years
70 – 75 years	Pension of 24 months or INR 5 lakhs	2 years	77 years

Family Pensioners

Age on the date of loan sanction	Maximum loan	Repayment tenure	Age on the date of maturity
Below 75 years	Pension of 18 months or INR 5 lakhs	5 years	75 years
70 – 75 years	Pension of 18 months or INR 3 lakhs	3 years	78 years

Documents Required For Canara Bank Personal Loan

Below mentioned are the documents required for the various Canara Bank Personal Loan products.

Canara Budget

Application form	The application form should duly be signed 2 passport sized photographs should be attached along with the form
Bank statements	Salary certificate Form 16 for the previous 3 years ITR/ITAO of the previous 3 years
Co-applicant	The details of the co-applicant (if applicable)
Other documents	Pronote/Pronote covering letter

Canara Teachers Loan

Application form	The application form should duly be signed 2 passport sized photographs should be attached along with the form
Bank statements	Salary certificate Form 16 for the previous 3 years
Co-applicant	The details of the co-applicant (if applicable)
Other documents	Pronote/Pronote covering letter

Canara Pension

Application form	The application form should duly be signed 2 passport sized photographs should be attached along with the form
Bank statements	Salary certificate Form 16 for the previous 3 years ITR/ITAO of the previous 3 years
Co-applicant	The details of the co-applicant (unless waived)
Other documents	Delivery letter to DNP

How Does Canara Bank Compare with Other Lenders?

Canara Bank	11.65% p.a. onwards
HDFC Bank	10.75% to 21.50% p.a.
IndusInd Bank	11.00% to 16.75% p.a.
Tata Capital	11.25% to 14.49% p.a.
Fullerton	11.99% to 25.00% p.a.
Kotak Mahindra Bank	10.50% to 16.99% p.a.
Citibank	10.50% to 17.99% p.a.
Yes Bank	20.00% to 22.00% p.a.

Canara Bank Personal Loan EMI Calculator

The Canara Bank Personal Loan EMI Calculator is an AI-based user-friendly online tool that computes an estimated monthly EMI and total interest payable over the loan tenure. A pie chart will display the estimated figures on entering the loan amount, rate of interest and term. 

Alternatively, you can compute the EMI on your loan using the mathematical formula given below:

EMI = P × r × (1 + r)n/((1 + r)n – 1) 

Where,

• P is the principal amount
• r is the rate of interest
• n is the number of years in the tenure