Canara Bank Personal Loan – Interest Rate, Eligibility and Documentation in 2024
Canara Bank Personal Loan – Canara Bank is one of India’s leading public sector banks that provides personal loans with attractive interest rates and flexible repayment options.
If you plan to take a personal loan from Canara Bank, here is a step-by-step guide on applying and the critical details regarding loan amount, interest rates, eligibility criteria, documents required, loan tenure, EMI, and other terms and conditions.
Canara Bank Personal Loan Key Features
- Loan Amount: Up to Rs. 20 lakhs
- Interest Rates: Starts from 10.25% per annum
- Loan Tenure: Maximum five years
- Processing Fee: Up to 2.25% of the loan amount plus taxes
- Foreclosure Charges: Nil
- Prepayment Charges: Nil
Customer Care Numbers
You can contact Canara Bank customer care to enquire about personal loans on the following numbers:
- Phone Banking Numbers: 1800 425 0018
- NRI Customer Care: 022-66985000/01
- Senior Citizen Cell: 044-24330233
- Email ID: cbmservice@canarabank.com
Documents Required
Here are the documents you would need to apply for a Canara Bank personal loan:
- Duly filled out the personal loan application form.
- Identity proof (Aadhaar card, voter ID, passport, etc.)
- Residence proof
- Last three months’ salary slips
- Bank statements for the last six months
- Photographs
- Age proof
- Signature identification proof
- Proof of work experience
- Qualification certificates
Apart from this, Canara Bank may ask for other documents based on your profile, income status, and the loan amount you are applying for.
Eligibility Criteria
To be eligible for a Canara Bank personal loan, you must fulfill the following eligibility criteria:
Age between 21 to 60 years at loan maturity
Salaried individuals with a minimum net monthly income of Rs. 15,000
Self-employed professionals who have been in business for at least three years.
How to Apply Online for Canara Bank Personal Loan
Canara Bank offers an easy-to-use online loan application facility through its net banking portal. Here are the steps to apply for Canara Bank personal loan online:
Step 1: Go to Canara Bank’s website (https://canarabank.com/) and click on “Apply Online” under the “Personal Banking” section
Step 2: Click on the “Loans” tab and select “Personal Loan.”
Step 3: You will be redirected to a new page where you have to click on the “Apply Now” button to start your loan application
Step 4: Select your location and preferred branch and click “Proceed.”
Step 5: An online personal loan application form will open up. Fill in all details in the form, such as your name, contact information, date of birth, PAN, income and employment details, etc. Proceed to the next section once the form is filled.
Step 6: In the additional details section, fill in information about the loan amount you want to apply for, the loan period, details about your existing loans/credit cards, if any, and the purpose of the loan. Review all details properly before final submission.
Step 7: Upload scanned copies of your photographs, identity proof, address proof, income documents, bank statements, etc., as per the list of documents required.
Step 8: Make the final submission by clicking “Submit” once you have filled all sections accurately and attached relevant documents.
Step 9: After receiving your application, Canara Bank will evaluate it based on its approval criteria and get back to you regarding loan approval or the next steps required.
This is the quick process to apply online for a Canara Bank personal loan from their net banking portal.
Personal Loan Interest Rates & Charges
Canara Bank offers personal loans at attractive interest rates starting from just 10.25% per annum.
Besides the interest rate, you must pay certain charges while taking a personal loan from Canara Bank. These include:
- Processing Fee: Up to 2.25% of the loan amount plus service tax
- Prepayment Charges: Nil
- Foreclosure Charges: Nil
- Penal Interest: 2% pm on overdue EMIs
So, while the interest rate is competitive, you have minimal processing fees or prepayment charges to pay.
Loan Tenure
Canara Bank offers the flexibility to choose a loan tenure from 12 months to 5 years per your repayment capability and financial planning. The most common loan tenure opted for by Canara Bank, personal loan customers, include:
- 2 years
- 3 years
- 4 years
Of course, the longer the loan tenure, the lower your EMI outgo will be, albeit the overall interest outgo will be higher than a short-tenure loan. You can use Canara Bank’s personal loan EMI calculator to determine your planned EMI’s best-suited loan period.
Loan Amount
Per personal loan norms, salaried individuals can avail from Rs. 25,000 to Rs. 20 lakhs, while self-employed professionals can get a maximum of Rs. 7.5 lakhs personal loan from Canara Bank subject to eligibility.
Repayment and Moratorium Period
Canara Bank offers the option of choosing your repayment cycle as per convenience, including:
- Monthly
- Quarterly
- Half-yearly
There is also a provision for a moratorium period or initial EMI holiday of 3 months, thus giving you some financial flexibility.
However, it is recommended to start EMIs immediately to reduce overall interest outgo. The moratorium facility should only be availed if facing a short-term cash crunch and not otherwise.
Personal Loan Eligibility and Documents Required
As discussed earlier also, the critical eligibility norms for Canara Bank personal loans are:
- Salaried Individuals
- Minimum age of 21 years
- Maximum age of 60 years or retirement age
- Minimum net monthly income – Rs. 15,000 in metro cities, Rs. 12,000 in other areas
- Total work experience of at least two years
- Employees of both private and public sector companies are eligible.
- Self-employed Professionals
- Have been in business for a minimum of 3 years
- Age between 25 – 65 years
- Profits/income should support repayment capacity.
The documents required for a Canara Bank personal loan are:
- Application form
- Identity proof – Aadhaar, PAN, Voter ID, Driving License, etc.
- Residence proof
- Passport size photographs
- Bank statements – latest six months
- Salary slips – last three months
- Proof of business existence (for self-employed)
- Ownership proof – property, vehicle, etc.
- Credit report (CIBIL report)
- Proof of work experience
So, by fulfilling the above eligibility criteria and preparing the required documents, you can apply for a Canara Bank Personal loan.
End-Use of Loan Amount
Canara Bank does not insist on end-use proof for loans up to Rs. 1 lakh. However, for all higher loan amounts, you must show valid end-use or purpose for taking the loan. Approved end-uses for Canara Bank personal loan include:
- Marriage expenses
- Medical expenses
- Higher education
- Travel expenses
- Purchase of consumer durables
- Home Renovation
- Debt consolidation
So, you can use the loan amount for most personal financial needs. Of course, usage for speculative activities would strictly not be allowed.
Apply for a Canara Bank Personal Loan through the CreditMantri Platform
While you can directly apply to a Canara Bank branch or website for a personal loan, a more accessible online loan aggregator platform is an easier option. CreditMantri is a leading portal with tie-ups with multiple banks and NBFCs, including Canara Bank.
The advantages of applying for Canara Bank Personal Loan through CreditMantri are:
- Paperless approval process
- Lower documentation
- Quick loan disbursal
- Customized loan offers matching your profile
By integrating advanced algorithms with analytics, CreditMantri gives you a pre-approved offer showing your eligibility across multiple lenders. You also get assistance from credit experts in choosing the right loan product for your financial needs.
So instead of directly approaching the Canara bank branch, you can use CreditMantri services for faster processing and a better deal on your loan from Canara Bank or any other leading financer.
The online interface smooths loan applications, and you get the funds deposited in your bank account quickly.
Personal Loan EMI Calculator
Determining the correct loan EMI outlay every month is crucial before making any loan decision, including personal loans. Canara Bank offers an easy-to-use personal loan EMI calculator on its website. You can self-assess the EMIs payable based on the loan amount, tenure, and interest rate.
All you have to do is enter the following three details:
- Loan amount
- Tenure (months)
- Rate of Interest
The EMI calculator will instantly show you the EMI amount payable every month, total interest outgo, and overall loan outflow. For instance, if you take a loan of Rs. 5 lakhs for three years at 11% p.a. interest, the total EMIs payable will be Rs. 16,324 x 36 = Rs. 5,87,679.
So, by prudently using this calculator, you can determine affordable EMI and optimal loan amounts that fit within your monthly income, thereby maintaining a healthy credit profile.
How to get a Personal Loan Balance Statement from Canara Bank
While your loan EMI payments would be regular as per chosen tenure, you can also access personal loan balance statement from Canara Bank using multiple channels, including:
- a) Net Banking: Log in to your CANDI Internet banking account to check the outstanding loan amount, EMIs paid, total payments made, pending interest, next due date, etc.
- b) Mobile Banking: Use the CANDI mobile banking app supported on your smartphone to access your personal loan balance, generate loan statements, know the next EMI due date, etc.
- c) Branch Visit: Visit your home branch from where the loan was disbursed and meet the bank officer to get a personal loan balance statement. Carry your account number.
- d) Customer Care: Call the Canara Bank customer support number and speak to the phone banking officer to get the current loan’s outstanding details. Specify the account number for easy retrieval.
- e) Passbook/Account Statement: Your regular bank account passbook where salary gets credited would also reflect the running loan outstanding balance with the breakup of principal & interest.
By proactively checking your balance status, you can ensure the closure of a loan, thereby improving your credit score. Use any of the above modes per convenience.
Preclosure or Foreclosure of Canara Bank Personal Loan
While it is recommended to complete the entire tenure of a personal loan to minimize interest payouts, you have the flexibility for preclosure or foreclosure of Canara Bank without any penalty charges applicable. This makes sense once your cash inflows improve, allowing faster repayment.
You can make part prepayments anytime to reduce the principal outstanding. You also get concessional interest rates on accumulated prepayments of 25% of the loan amount.
Besides this, you can go for a full & final settlement by paying the total pending dues to close the loan account.
For preclosure, contact your Canara Bank branch with the application & intent to close the letter. The officer will provide a pending dues statement with a breakdown of all payable charges.
Submit the closure amount through cheque or DD payment and obtain a No Dues Certificate from the bank. This completes the foreclosure formalities. Maintain copies of closure letters for future records.
By planning smart financial decisions, including judicious leverage of personal loans and ensuring disciplined repayments, you can fulfill lifestyle aspirations and build a robust credit profile, which allows faster access to credit when required at best terms suiting pocket.
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