About Canara Bank personal loan
Canara Bank offers a range of personal loans designed to convert financial dreams into reality. These multipurpose loans are designed to meet any personal financial need a customer could have, offering monetary relief at extremely competitive rates. Canara Bank follows a simple and hassle-free personal loan application procedure, ensuring the needs of the customer are always given priority, making it a unique feature of their banking process.
Canara Bank Personal Loan Eligibility
Applicants who wish to apply for a Canara Bank personal loan are expected to meet the following basic eligibility criteria.
- Work experience – Applicants should have a minimum work experience of 3 years.
- Income – Applicants should have a minimum monthly net salary of at least Rs. 6,000/- after the instalments are deducted.
- Account with Canara Bank – Applicants should have an operating account with Canara Bank and their salaries should be credited to this account.
- Maximum age – Applicants should be less than 55 years to avail a personal loan. Applicants over the age of 55 can be considered for personal loans at the sole discretion of Canara Bank.
- Employer – Applicants should be employees of reputed companies or government organisations.
- Work experience – Self-employed and business professionals should have a minimum work experience of 3 years.
- Minimum Income – Applicants should have a minimum annual net income of Rs. 1.50 lakh.
- Pension – Applicants should have a regular source of pension.
- Age – The maximum age of applicants should not exceed 70 years.
Factors affecting Canara Bank Personal Loan Eligibility
The eligibility for a Canara Bank personal loan can be affected by multiple factors, some of which are mentioned below.
- Age – The age of an applicant plays a major role in a personal loan application, with banks being cautious about sanctioning loans to youngsters, who might be seen as free-spirited and financially unstable. Applicants approaching their retirement age might also find it hard to obtain a loan as they might not have the same disposable income to clear the loan post retirement.
- Income– The disposable income of an applicant is crucial in determining Personal loan eligibility, with banks gauging the repayment capacity through their income. Higher the income of an applicant, higher the chances of him/her getting the loan approved.
- Employer background – Employees of reputed organisations are likely to get their loan application sanction faster than employees of new and unknown organisations, as there is a trust factor associated with certain brands. Employees of new organisations might face income crunch if their company does not do well, casting doubts on their loan repayment capability.
- Type of employment – Temporary or probationary employees are often not considered eligible for loans as they do not have job security. Banks prefer permanent employees as they have a regular source of income from which EMI can be deducted. Self-employed applicants need to have suitable work experience in their field to increase their eligibility for a Canara Bank personal loan.
- Relationship with the bank – A healthy relationship with the bank is likely to boost the chances of an applicant obtaining a personal loan, as this builds trust and confidence, providing sufficient history to the bank to gauge the applicant.
- Existing debt – Pre-existing debt liabilities might be looked down upon as they can hamper the loan repayment capacity of an individual.
How CIBIL score affects your Canara Bank Personal Loan Eligibility
Canara Bank checks the CIBIL score of an applicant before sanctioning/rejecting the loan, as a CIBIL score provides a peek into the financial life of an individual. The credit history of an applicant often reflects his/her repayment pattern, offering Canara Bank the opportunity to analyse the loan repayment capacity. Individuals with a high CIBIL score are likely to get the loan approved without major hassles, whereas applicants with poor CIBIL score will not be considered for a Canara Bank personal loan.
Applicants with an average CIBIL score might be considered for a loan, but their eligibility would depend on other factors as well.
How to increase Canara Bank Personal Loan Eligibility
Following a few simple steps could help increase an individual’s eligibility for a Canara Bank personal loan.
- Timely payment – Timely payment of EMIs and credit card bills will reflect on the credit history, improving not just the CIBIL score but also the chances of getting a loan sanctioned.
- Choosing longer tenure – A longer loan repayment tenure implies lower EMIs, which could meet the repayment capacity of an applicant.
- Prepayment – Prepaying any existing loan amount ensures that an applicant is left with a higher disposable income, strengthening the loan application.
- Mixing up the loans – A healthy mix of un secured and secured loans helps build a stronger credit report.
- Limiting loan applications> – Multiple loan applications are reflected in the credit report, lowering the score considerably. They also end up portraying the applicant as loan hungry and desperate, hampering overall credibility.
- Limiting loan amounts – Asking for amounts higher than needed could make bank authorities cautious. Smaller loan amounts are easier to obtain as they can be repaid easily, without burdening the applicant.
- Maintain a steady job – Having a stable job is viewed upon positively as there is a regular source of income, limiting the chances of defaulting.
FAQs on Canara Bank Personal Loan Eligibility
Q. Do I need to be an existing customer of Canara Bank to avail a personal loan?
A. Yes, applicants should be existing customers of Canara Bank in order to avail a loan.
Q. Is co-obligation compulsory to avail a Canara Bank personal loan?
A. Yes, co-obligation is required to obtain a loan.
Q. Can an applicant apply for two personal loans?
A. Canara Bank might consider a second loan application, if there are no over-dues in the first loan, subject to the applicant satisfying the requisite eligibility criteria.