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    Canara Bank Personal Loan Interest Rates

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    1% (min. ₹250) One time fee
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    1-3 years
    Response Time Within 30 minutes
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    Overview of Canara Bank Personal Loans

    Canara Bank Personal Loans are a credit option that can help an individual with sudden expenses, an occasional vacation, pay fees, make arrangements for weddings and the like. In short, personal loans from Canara can help in almost any expenditure that one hasn’t actually planned for in advance and thus make the best of a worst situation many times. Personal loans from Canara Bank are readily available through minimal documentation and low waiting periods.

    Canara Bank Personal Loan Interest Rates

    Canara Bank Personal Loan interest rates have varied within 2-3% in the past five years and the recent changes in the repo rate from RBI have resulted in a lowering of the interest rate recently. As of May 2015, the rates for personal loans from Canara Bank range from 10.5-15% and might be applicable for salaried and self-employed individuals. The interest rates are variable for different customers and categories of customers and are at the sole discretion of the bank.

    Interest Rate (for salaried and self employed individuals)10.5%-15% (depends on the bank’s discretion and other factors)
    Loan TypesCanara Budget - Personal loan scheme for salaried individuals
    Teachers Loan - Personal loans for all the salaried staff at schools/colleges
    Canara Rent - Personal loans for property owners
    Canara Guide - Personal loans for finance individuals practicing as Tax Return Preparer (TRP)
    Doctors Choice - Personal loans for medical practitioners
    Canara Home Improvement Loan - Personal loans for salaried/self-employed owners of houses/flats
    Canara Consumer Loan - Personal loans for salaried/self-employed individuals
    Loan AmountMinimum - Rs. 60,000 Maximum - Rs. 10,00,000 for the various schemes
    Loan Tenure12 months to 60 months
    Lowest EMI per lakhRs. 2149
    Prepayment ChargesDepends on the discretion of the bank
    Base Rate (as of May 2015)10%

    Calculating Interest on Canara Personal Loan

    A personal loan of any amount from Canara Bank needs to be paid back in equated monthly installments (EMIs) and every EMI consists of a portion of the principal amount as well as the interest. As the personal loan moves towards maturity, the principal portion gradually increases and consequently the interest portion decreases.

    The method for calculating the EMI on a personal loan can be mentioned as follows -

    E = P*r*[(1+r)^n/((1+r)^n-1)]

    Here E - Monthly EMI, r - rate of interest per month, n - number of years.

    For a ballpark figure of Rs. 1,00,000 at an interest rate of 10.5% with a loan tenure of 1 year, the first EMIs for the first year would be Rs. 44,074 out of which the interest will account for Rs. 3,674.

    For example, a personal loan of Rs. 10,00,000 for a period of 5 years at an interest rate of 10.5% from Canara Bank would have the following scenario for the EMI to be paid (starting from August 2015) -

    YearTotal Payment (INR)Balance (INR)Principal Portion (INR)Interest Portion (INR)
    20151,07,4709,35,15664,84442,625
    20162,57,9277,67,5041,67,65190,275
    20172,57,9275,81,3771,86,12771,800
    20182,57,9273,74,7382,06,63951,288
    20192,57,9271,45,3272,29,41128,515
    20201,50,45701,45,3275,131

    It is to be noted that though the amounts of principal and interest keep varying throughout the loan tenure, the total EMI amount doesn’t change much.

    Factors affecting Canara Personal Loan Interest Rates

    Canara personal loan interest rates stay the same for any salaried individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as -

    • Personal loan amount - Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers. A higher loan amount could cause a lower or higher rate of interest
    • Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
    • Repayment capacity - Canara Bank keeps a tab on the income and consequently the repayment capability of a customer. Depending on amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates
    • Income - Income plays an important part in making sure if one is eligible for even applying for the loan. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
    • Assets - Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, Canara Bank might provide a preferential rate of interest for personal loans
    • Relationship with the bank - An existing customer of Canara Bank is bound to get preference when
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