Canara Bank Personal Loan
Canara Bank offers personal loans with competitive interest rates starting from 10.95% per annum. Customers can secure loans up to ₹10 lakh with flexible repayment terms extending up to 7 years.
For those holding a salary account with Canara Bank, there's an option for an instant personal loan up to ₹1 lakh. The processing fee for these loans is capped at 0.50% of the loan amount, with a discount of 50% available, reducing the fee to between ₹1,000 and ₹5,000.
Notably, there are no charges for prepayment or foreclosure. To apply, borrowers need to provide proof of identity, proof of address, and the latest salary slips.
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 Loans Interest Rates vs Other Banks
| Banks/NBFCs | Interest Rates (p.a.) |
|---|---|
| IndusInd Bank | 10.49% onwards |
| HDFC Bank | 10.50% onwards |
| ICICI Bank | 10.80% onwards |
| IDFC First Bank | 10.99% onwards |
| Kotak Mahindra Bank | 10.99% onwards |
| Tata Capital | 10.99% onwards |
| Aditya Birla | 10.99% onwards |
| Axis Bank | 11.25% onwards |
| Federal Bank | 12.00% onwards |
| DMI Finance | 12.00% - 40.00% |
| L&T Finance | 12.00% onwards |
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.
Canara Bank Loan Amount and Tenure
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 and Essential Documents 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:
1. 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.
2. 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.
3. 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.
4. Canara Pension Loan
Eligibility Criteria:
- Pensioners: Available to all State and Central Government pensioners.
- Public Sector Pensioners:Includes pensioners from Public Sector Undertakings and Corporate Pensioners.
- Government Sector Undertakings Pensioners: Also includes pensioners from Government Sector Undertakings.
- Family Pensioners:Family pensioners of the above categories are eligible.
- 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:
1. Completed Loan Application Form:: Make sure to fill out the application form thoroughly and accurately. Include two recent passport-sized photographs with your application.
2. Promissory Note/Promissory Note Cover Letter::
This document outlines your commitment to repay the loan and should be provided as part of your application.
3. 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.
4. 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
The Canara Budget loan has a maximum tenure of 60 months, while the Canara Teachers Loan has a maximum tenure of 48 months.
While Canara Bank doesn’t specify a minimum salary, a monthly income of ₹15,000 is generally considered.
Canara Bank doesn’t set a specific credit score requirement, but a score of 750 or above is favourable for better loan terms.
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.
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.
Yes, Canara Bank provides online instant personal loans from ₹10,000 to ₹1 lakh for salary account holders.
Get Instant Loan at Low Interest Rates
Bajaj Finserv
Loan Amount Upto
Upto 40 Lacs
Tenure
12-60 months
Rate of Interest
14% - 18%*
Processing Fee Upto
Upto 1.15% of loan amount
Axis Bank
Loan Amount Upto
Upto Rs 50 Lacs
Tenure
12-84 months
Rate of Interest
starts from 16%*
Processing Fee Upto
1.5% of loan amount
View More Offers
Calculators
EMI Calculator
Calculate your monthly installment amount for a loan based on the principal, interest rate, and tenure
Income Tax Calculator
Choose the right income tax regime & discover your tax savings
Best offers for you
Personal Loans
100% Digital, Zero Paperwork.
Credit score
Know your score for Free.