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Personal Loan

Canara Bank is one of the oldest banks based out of Bangalore Karnataka. Formed in the year 1906 by a great visionary and philanthropist , Shri Ammembal Subba Rao Pai.post Nationalization in the year 1969, the Bank has gone through the leap mounting growth and continues to live up to its customer centricity approach till date . With an unbroken record of profits since its inception till today, Canara Bank hold a leading position in the gamut of Indian banks.

Over the years, the Bank has been a key factor in growth of Indian economy. The products offered by Canara Bank are not only diversified to suit the customer need but are always tailor made to meet the expectation of common Indian consumer. The results truly depicts and hence even in tough conditions , canara bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad.

Types of Canara Bank Personal Loans

Canara Banks offers persona loan products to cater the urgent financial needs of common Indian consumer. The loan products have been exclusively designed for few particular sectors which are generally left behind by other lenders.


The various types of personal loan offered by Canara Bank are:
 

  1. Canara Budget personal Loan For Employed individuals
  2. Teachers Loan
  3. Senior Citizen personal Loan scheme
  4. Canara Consumer Loan

Canara Budget Personal Loan

A Personal Loan Scheme designed to meet the urgent financial needs of employees of corporate companies, Public sector undertaking, Government employees etc.
 

  • The loan is sanctioned to meet any genuine financial needs other than exploratory reasons.
  • The loan is exclusively for salaried Confirmed employees of reputed Public sector Undertakings and Joint Stock Companies, Confirmed salaried employees of Central or State Government, Lecturers or Assistant Professors or Professors of reputed Colleges or any Research Institutions and Universities.
  • The employees salary account should be with Canara Bank.
  • The minimum Net take home salary should be at least 25% higher or Rs. 10000 post deduction of the loan EMI amount.
  • The maximum loan amount that could be sanctioned is Rs. 3 lakhs or 6 times the gross salary whichever is lesser.
  • Higher loan amount is at the sole discretion of the bank.
  • The maximum tenure could be of 60 months.
  • Bank may require co-obligation equal to the loan amount in general.
  • The processing fee of 0.5% of loan amount (Min. Rs1000 or maximum Rs. 5000)
  • All out of pocket expenses like Outsourcing Charges, CIBIL Charges etc. to be borne by the borrower
  • Loans under this scheme are sanctioned only on floating rates of interest, which is linked to MCLR. In case of salary tie –up, 1yr MCLR + 4.3%, otherwise 1yr MCLR + 5.3%.


Documents Required:

List of key documents that need to be submitted by all applicants:
 

  1. Completely filled out loan application
  2. 2 passport-sized photographs (including those affixed in loan application)
  3. Proof of identification: Aadhar Proof / Driving License/Voter ID Card/ PAN card/ Passport.
  4. Proof of residence: Electricity Bill/ Passport / Electoral ID Card/ Telephone Bill.
  5. Bank account statement of for the last 6 months
  6. Documents supporting signature identification from current bankers
  7. Personal Assets and Liabilities Statements in Bank’s standard format.
  8. Latest Salary Certificate and Form No.16 / ITR/ITAO for last 3 years.
  9. Co-obligation unless not waived
  10. An undertaking letter from the employer not to shift the salary without No Objection Certificate from the branch
  11. Pro-note / Pro-note Covering Letter

Canara Bank Teachers Personal Loan

  • A personal loan scheme dedicated to all incorrigible teaching / non-teaching staff who are working in any school or college and are maintaining the salary account with canara bank.
  • An undertaking letter from salary disbursing authority at District/Block level not to shift the salary account without NOC from the branch.
  • The minimum Net take home salary should be at least 30% higher or Rs. 10000 post deduction of the loan EMI amount.
  • The maximum loan amount that could be sanctioned is Rs. 2 lakhs or 10 times the gross salary whichever is lesser.
  • Higher loan amount is at the sole discretion of the bank.
  • The maximum tenure could be of 48 months.
  • Bank may require co-obligation equal to the loan amount in general.
  • The processing fee of 1% of loan amount (Min. Rs 50)
  • All out of pocket expenses like Outsourcing Charges, CIBIL Charges etc. to be borne by the borrower
  • Loans under this scheme are sanctioned only on floating rates of interest, which is linked to MCLR. Current rate 1yr MCLR + 3.95%.

 

Documents Required

List of papers / documents applicable to all applicants:
 

  1. Completed loan application
  2. 2 passport size photographs (including those affixed in loan application)
  3. Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
  4. Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
  5. Statement of bank account for the last six months
  6. Signature identification from present bankers
  7. Personal Assets and Liabilities Statements in Bank’s standard format
  8. Latest Salary Certificate and Form No.16 / ITR/ITAO for last 3 years.
  9. Co-obligation unless waived off
  10. an undertaking letter from the salary disbursing authority at District/Block level not to shift the salary without No Objection Certificate from the branch
  11. Pronote / Pronote Covering Letter

Senior Citizen Personal Loan Scheme

  • A personal loan scheme specially crafted to meet the urgent financial needs such as medical expenses of the senior citizens.
  • The loan is available to any Pensioners of Central Governments or State government, Public sector undertakings Corporate Pensioners / or ex staff of any bank drawing their pension through canara bank branches.
  • The maximum loan amount could be either 15 months pension or Rs3 lakh whichever is lower.
  • The maximum loan amount is subject to at least 40% as take home post deduction of loan EMI (min. Rs.7500).
  • For Ex- canara bank staff member or Family Pensioners of Retired Employees of Canara Bank the quantum of loan amount is 20months of pension amount or Rs. 4 lakh whichever is lesser, provided met take home as 40% post deduction of loan EMI (Min. Rs. 7500).
  • The loan tenor could be of 60 EMIs if pensioner is below 65 years, 48 EMIs if pensioner is above 65 years.
  • Nil processing fee or other Misc charges in this loan scheme.

Documents Required

List of papers / documents applicable to all applicants:
 

  1. Completed loan application
  2. 2 passport size photographs (including those affixed in loan application)
  3. Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
  4. Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
  5. Statement of bank account for the last six months
  6. Signature identification from present bankers
  7. Personal Assets and Liabilities Statements in Bank’s standard format
  8. Delivery letter to DPN
  9. Co-obligation (unless waived)

Canara Bank Consumer Personal Loan

  • A simple Personal Loan Scheme for majority class of Indian consumer who are intending to purchase any new household item such as furniture, computers / Laptops, electronic gadgets .
  • The loan is available to Salaried employees or self employed businessmen or professionals.
  • For salaried employees the Net take home salary should be 40% of gross salary after deducting the loan EMI or Rs.6000, whichever is higher.
  • For Professionals and other non-salaried persons should have a minimum annual net income of Rs.150000 (after tax) as evidenced by Income Tax Assessment Order (ITAO) / Income Tax Return.
  • The income of the spouse is allowed to be considered for deriving the eligible loan quantum and also for complying with Net Take Home Salary prerequisite.
  • The maximum loan amount for salaried customer could be 75% of invoice value or 15 months of net salary or Rs.100000, whichever is less.
  • Whereas for Non salaried borrowers, 75% of the invoice value or to the extent of 50% of their annual net income in the immediate previous year or Rs.100000 whichever is less.
  • The loan is sanctioned for a maximum tenor of 36 months and is to be repaid in the form of equated monthly installments.
  • The EMI would commence from the month following the month of disbursement.
  • Co-obligation is required in form of a person known to Bank and good for the amount has to furnish guarantee
  • Processing fee is charged as 1% of loan amount with a minimum of Rs.250
  • Borrower may apply for second durable loan while the first one is running subject to overall loan limit and eligibility of the borrower.

 

Documents Required

List of papers / documents applicable to all applicants:
 

  1. Completed loan application
  2. 2 passport size photographs (including those affixed in loan application)
  3. Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
  4. Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
  5. Statement of bank account for the last six months
  6. Signature identification from present bankers
  7. Personal Assets and Liabilities Statements in Bank’s standard format
  8. Delivery letter to DPN
  9. Co-obligation (unless waived)

EMI Calculator

Before submitting the completed application, an applicant can plan and check their loan application and chargeable EMI amount by using the easy to use EMI calculator. The Paisabazaar EMI calculator enables customers to keep their financial planning intact post availing the loan.

Applicants may check the same in simple and easy to comprehensible method.

  • Log on http://www.paisabazaar.com/personal-loan/
  • Fill the basic details of:
     
    • How much of loan would you like to avail
    • The tenure for which you would like to take the loan for
    • City of current residence
    • Employment status: whether you have your own business or self employed or into some kind of service
    • Net Monthly income: to check your loan eligibility
    • The EMI that you already pay, other than the personal loan that you wish to avail
    • Loan history
    • Name and date of birth and contact information
       
  • And then click on “View all offers” tab to see the various personal loan offers available for you
  • The result would be spontaneous and would give the exact EMI amount.

Other Important Terms and Conditions

  • Interest on loan amount shall be levied as per the existing rate on daily reducing balance
  • Any change in the rate of interest as applicable for the personal loans shall be duly displayed on bank’s notice board as well as published in local newspapers. This shall be applicable for both the cases when there is change in base rate as well as any change in interest rate irrespective of any change in base rate. It would be supposed that the customer is well aware of such changes as shall pay the loan installments as per the revised interest rates.
  • The EMI would commence from the month following the month of disbursement.
  • The acceptable Co-obligation is permissible in form of any resident individual person well known to Bank and holds net worth as equivalent to the loan amount applied.
  • For the cases of late payment / Nonpayment of loan installments, the bank holds the right to impose any penalty / higher interest rate as applicable.
  • Penal rate of interest is applicable @2% per annum over and above the contractual rate of interest. The penal charges shall be computed on the irregular installment amount for the total period of nonpayment and collected if the EMI is unpaid for over 30 days, for any reason, including a returned cheque.
  • Rs.250 will be charged as penalty charges for each instance of cheque return /ECS or Standing Instruction dishonors. The charges are subject to revision as per bank’s policy and shall be duly informed through its website and notice in the schedule of charges applicable for personal loan scheme.
  • As per the banks due collection policy , for the cases of default in loan payment i.e. if the installment amount due is unpaid by EMI date, bank will send reminder to the customer from time to time towards the payment of all outstanding on his loan account,.
  • The modes of communication as generally used by bank is by post, telephone, fax, email, SMS messaging as well as through duly appointed third parties for collection purpose.