Canara Bank Personal Loans

Canara Bank Budget Loan

4
Processing Fee
0.50

Loan Amount
₹ Up to 3 Lacs
Tenure
1 - 5 Years

Canara Bank Consumer Loan

4
Processing Fee

Loan Amount
₹ Up to 1 Lac
Tenure
1 - 3 Years

Canara Bank Pension Loan

4
Processing Fee
0

Loan Amount
₹ Up to 4 Lacs
Tenure
1 - 6 Years

Canara Bank Personal Loan

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 loan is ranging between 10.90% to up to maximum of 13.90% per annum and the tenure to repay your loan is 12 months to up to maximum of 72 months.


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 no to worry about your financial condition as in this scheme, Canara Bank provides personal loan for all Government Pensioners and family pensioners including Government Undertakings and Public Sector Undertakings.

Ex-Employees & their family pensioners – If you are a Ex-Employee of Canara Bank and needs funds to fulfill your personal requirement 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 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 employees who is serving the government and needs money for his / her personal requirement. Now, it's your turn to be served by the Canara Bank as it avails funds as high as equal to gross monthly salary of 6 months or maximum Rs 3 Lacs with a tenure ranging from 12 months to up to maximum of 60 months.

Canara Bank Personal Loan at a glance

Annual Interest Rate

10.90% - 13.90%

Loan Term

12 Months - 72 Months

Loan Amount

Rs. 1 Lac - Rs. 3 Lacs

Max Rs. 5 Lacs for Pensioners

Time of Funding

Within 7 days

Pre-Payment Charges

Nil

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 ranging 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 who provides loans to the applicants who are earning 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 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 upto 5% of the loan amount and Capital First which charges upto 1.50% of the loan amount and in case of HDFC, the Processing Fees is upto 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 loan with lowest charges as this is one of the bank which charges lowest processing fees in the industry, charging on 0.50% of the loan amount ranging from minimum Rs 1,000 to maximum of Rs. 5,000 as compared to other banks such as HDFC Bank which charges a processing fees of up to Rs. 2.50% of the loan amount subject to a minimum of Rs. 1,999 and 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 compare to other competing banks or financial institutions where you can avail personal loan without having any salary account with the bank.

Co-Obligation is Mandatory – While applying a personal loan from Canara Bank you must know that the Co-Obligation is necessary to be provided to avail the loan, means in case if 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 case of TATA capital, you can avail loan up to 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 Name Canara Bank SBI Federal Bank

Typical APR

10.90% - 13.90%

10.75% - 15.15%

11.49% - 14.49%

Loan Term

12 months - 72 months

12 Months - 60 Months

12 months - 48 months

Maximum Lending Amount

Rs. 3 Lacs

Rs. 5 Lacs for Pensioners

Rs. 15 Lacs

Rs. 10 Lacs

Processing Fee

Zero to upto Rs. 5,000

1% of the Loan Amount

0.50% of the loan amount

Minimum Rs. 500

Time to Funding

Within 7 days

Within 2 to 3 days

Within 7 days

Pre-Closure

Nil

Zero to Upto 3% of the prepaid amount

2% of the outstanding amount

Coming to the comparison part, Canara Bank offers maximum of Rs. 3 Lacs and Rs. 5 Lacs in case of Pensioners within 7 days of approval, while SBI lends maximum of Rs. 15 lakhs within 2 to 3 days of approval and Federal Bank lends up to 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 case of Federal Bank, it charges 0.50% of the loan amount and minimum of Rs 500. The typical APR in case of Canara Bank ranging from 10.90% to up to maximum of 13.90% per annum, while 10.75% to up to maximum of 15.15% per annum, 11.49% to up to 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 maximum of 60 months and 12 months to maximum of 48 months in 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 case of Federal Bank.

Am I Eligible?

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

Loan Offerings

Canara Budget Loan (Personal Loan for Salaried)

  • Canara Bank offers Budget loan to different group of people such as for Salaried employees applicants, it offers personal loan for permanent salaried employees of government organisations, 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 gross monthly salary of 6 months or maximum Rs 3 Lacs with a tenure ranging from 12 months to up to maximum of 60 months. It charges 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 equals to 0.50% of the loan amount subject to a minimum of Rs. 1,000 and charges a maximum of Rs. 5,000.
  • Documents required for Salaried Aapplicants:
    • Latest Salary Certificate along with Form No.16 or ITR/ITAO for last 3 years.
    • Loan Application with 2 passport size photograph and KYC Documents
    • Pronote / Pronote Covering Letter
    • Documents for the co-obligation
  • Documents required for Professionals and High Net Worth Individuals:
    • Copy of P&L Account and Asset Sheet
    • Latest ITR
    • Loan Application along with KYC Documents and Photographs

Canara Teachers Loan (Personal Loan for Teachers)

  • If you are 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 on Canara Teachers Loan which provides loans for teaching / non-teaching applicants working in school or colleges 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 other 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 maximum of Rs. 3 Lacs with a processing fees which is equal to 1% of the offered loan amount or minimum Rs. 50. The interest rate charged will be equal to 12.55% per annum and the tenure to repay your loan ranging from 12 months to up maximum of 48 months.
  • Documents required for Teachers:
    • Latest Salary Certificate along with Form No.16
    • Documents for co-obligation
    • Pronote/Pronote Covering Letter
    • Loan Application with 2 passport size photograph and KYC Documents

Canara Pension - General Public (Personal Loan for Pensioners)

  • Waiting for your pension to accomplish your goals? Need not to worry about your financial condition as in this scheme, Canara Bank provides personal loan 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 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 to 11.80% per annum and the tenure to repay your loan ranging from 12 months to up to maximum of 60 months if the age of the pensioner is above 65 years and 12 months to up to 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 such as in case of Federal Bank the processing charges ranging from 0.50% of the loan amount or a minimum of Rs. 500.
  • Document required for Pensioners:
    • Delivery Letter to Demand Promissory Note
    • Loan Application with 2 passport size photograph and KYC Documents
    • Documents for co-obligation

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

  • If you are a 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 from Rs. 40,000 to up to maximum of Rs. 5 Lacs or if you are taking the loan to pay the premium of IBA Group Mediclaim Insurance Policy then you can lend money equals to the value of 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 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.
  • Documents required :
    • Delivery Letter to Demand Promissory Note
    • Loan Application with 2 passport size photograph and KYC Documents
    • Documents for co-obligation
    • Document for authorisation to debit the account

Canara Bank Personal Loan Rate of Interest

Personal Loan Type Applicable Interest Rate

Canara Budget Loan

10.90% - 13.90% per annum

Canara Teachers Loan

12.55% per annum

Canara Pension - General Public

11.80% per annum

Canara Pension - Ex Employees

11.80% per annum

How do I apply for Canara Bank Personal Loan?

At Paisa

    • Click on the ''APPLY NOW'' button provided below
    • Fill the necessary details such as
      • Desired loan amount
      • Purpose of your loan
      • Your monthly salary, and whether you are salaried or self employed.
      • Name of your company, total experience etc.
    • Now click on "Submit"

At Canara Bank Branches

    • Walkin to the nearest branch of the Canara Bank Branch along with the loan application and KYC documents. Click here to download the personal loan application form.
    • Fill in your details in the form
    • Submit the application form at any of your nearest branch of Canara Bank Branch along with the necessary documents.

After I Apply?

Check loan status

    • Click here to go to the status tracking page
    • Enter your application number
    • Click on "Proceed"

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

For Salaried Employees & Teachers: 1% of the offered loan amount or minimum Rs. 50.


For Pensioners: Nil

Foreclosure Charges

Nil

Penal Charges

2% per month of the overdue amount

The processing fees charged by Canara bank is different for different applicants such as for Salaried Employees, the processing fees charged by Canara Bank is 1% of the offered loan amount or minimum Rs. 50 while for teachers the processing fees is 1% of the offered loan amount or minimum 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 charges a high amount of fees as in 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 such in case of Bandhan Bank the penal charges are 24% per annum or 2% per month on the overdue amount while in 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.

FAQs

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

Yes, you have to provide a co-obligation equal to loan amount as security for Canara Budget Loan. In 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. In case of Loan to Family Pensioners, Third Party Guarantee or Co-Obligation good for the amount should be obtained invariably.

In case of Personal loan for Canara Bank Ex-employees and their family pensioners, then suitable standing instructions/drawdown should be ensured on the date of opening loan account without fail.