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  • Canara Bank Personal Loan Interest Rates

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  • Canara Bank offers Personal Loan interest rates ranges from 13% - 14.15% p.a. The processing fee charged is only 1% of the loan amount up to a maximum of Rs.250. The maximum loan tenure for this loan is 36 months. The bank’s personal loan called Consumer Loan can be availed to buy household items. Canara Bank offers special interest rate for individuals with Salary tie-up at 13% p.a. , Without Salary tie-up at 14% p.a. and for BSNL Employeed at 11% p.a.

    Particulars Salaried Non-salaried
    Interest Rate 13% - 14.15% p.a.
    Processing Fee 1% of the loan amount (Minimum of Rs.250)
    Loan Tenure Up to 36 months
    Loan Amount Up to Rs.1 lakh
    Salary Rs.6,000 or net salary to be 40% of gross salary Rs.1.5 lakh
    Credit Score 700 and above
    Lowest EMI per Lakh Rs.3,369
    Pre-Payment Nil

    Canara Bank Consumer Loan

    Canara Bank offers a personal loan called Consumer Loan which allows individuals to avail a loan so that they can buy new consumer durable items such as furniture, utility articles, electronic appliances, and so on. Salaried, non-salaried, professionals, and businessmen are eligible for this loan type. The details about the loan and eligibility criteria are shown in the table below:

    Particulars Interest Rate Processing Fee Loan Tenure Loan Amount Income
    Salaried 13.15% p.a. 1% of the loan amount Up to 36 months Maximum Rs.1 lakh Net salary equal to 40% of gross salary
    Professionals/Non-salaried Rs.1.5 lakh p.a. net income

    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 applying for a personal loan and the bank might consider providing a better rate of interest to the customer
    • CIBIL scores - Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank

    All the above factors notwithstanding, any change in the advertised interest rates is at the sole discretion of the bank.

    Key Points regarding Canara Bank Personal Loan Interest Rates

    Availing a personal loan from Canara Bank is easy for salaried individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -

    • The interest rates in Canara Bank for personal loan are subject to the repo rate of RBI and may come down further, but not with an immediate effect
    • The personal loan interest rates in Canara Bank are floating and not fixed
    • Personal loans from Canara Bank don’t require a security or a collateral, addition of such factors may not have any impact on the interest rate
    • On approaching Canara Bank for a personal loan, the bank will already have a look at your credit score. Based on the same, the loan amounts might be vary, but there might not be any change in the interest rates

    Illustration

    1. Mr. Adit started working in an accountancy firm where he earns Rs.25,000 per month. He wanted to take a personal loan of Rs.50,000 to pay off some of his debt. He approached Canara Bank and the loan was approved instantly. The amortisation table for his loan to be repaid in a year’s time is given below:

    For Salary of Rs.25,000 Per Month

    Loan amount Rs.50,000
    Processing fee 1% of the loan amount
    Loan tenure 1 year
    Interest rate 13.15% p.a.
    Month Principal Paid(A) (in Rs.) Interest Paid(B) (in Rs.) Total Payment (A+B) (in Rs.) Outstanding Loan Balance (in Rs.)
    1 3,921 548 4,469 46,079
    2 3,964 505 4,469 42,114
    3 4,008 462 4,470 38,106
    4 4,052 418 4,470 34,054
    5 4,096 373 4,469 29,958
    6 4,141 328 4,469 25,817
    7 4,186 283 4,469 21,631
    8 4,232 237 4,469 17,398
    9 4,279 191 4,470 13,120
    10 4,326 144 4,470 8,794
    11 4,373 96 4,469 4,421
    12 4,421 48 4,469 0

    2. Mr. Sanjay works in a software company where he earns Rs.50,000 on a monthly basis. He needed Rs.1 lakh to pay for his daughter’s school donation. He approached Canara Bank which accepted the application. The amortisation table for the loan of Rs.1 lakh to be repaid over a period of 1 year is given in the table below:

    For Salary of Rs.50,000 Per Month

    Loan amount Rs.1 lakh
    Processing fee 1%
    Loan tenure 1 year
    Interest rate 13.15% p.a.
    Month Principal Paid(A) (in Rs.) Interest Paid(B) (in Rs.) Total Payment (A+B) (in Rs.) Outstanding Loan Balance (in Rs.)
    1 7,843 1,096 8,939 92,157
    2 7,929 1,010 8,939 84,228
    3 8,016 923 8,939 76,212
    4 8,104 835 8,939 68,109
    5 8,192 746 8,938 59,916
    6 8,282 657 8,939 51,634
    7 8,373 566 8,939 43,261
    8 8,465 474 8,939 34,797
    9 8,557 381 8,938 26,239
    10 8,651 288 8,939 17,588
    11 8,746 193 8,939 8,842
    12 8,842 97 8,939 0

    FAQ's

    1. Are there any conditions with regard to the eligibility criteria for the Canara Bank Consumer Loan?

    There are a few conditions regarding the eligibility criteria you should keep in mind while getting Canara Bank’s personal loan:

    • The net salary of the loan applicant is required to be 40% of the gross salary or Rs.6,000 after payment of the loan instalment
    • Non-salaried individuals and professionals are required to have a net annual income of Rs.1.5 lakh. The proofs required to be submitted for the same are Income Tax Returns and Tax Assessment Order.
    • For salaried individuals, the salary needs to be credited to the applicant’s operating account in the bank. Alternatively, the applicant should lodge a mandate with the employer so that instalments can be recovered conveniently.
    • The income of the applicant’s spouse is also taken into consideration to determine if the applicant is eligible for the loan.
    2. Does the loan require security?

    Hypothecation of the item being purchased is necessary under the Consumer Loan.

    3. Do I need a guarantor for the loan?

    A personal guarantee/co-obligation is required by the bank, but the higher authority may waive the need for it depending on the merits of the case.

    4. Can I get a new loan from Canara Bank while I’m still repaying the first one?

    Yes, you can get an additional loan from Canara Bank as long as the eligibility criteria, especially the income clause, are met and there are no overdue payments in the existing loan.

    5. How do I know how much I have to repay during the tenure?

    You can use the online Personal Loan EMI calculator on BankBazaar to calculate the exact EMI to be paid to the bank. The EMI is to be paid starting from the month when the loan amount is disbursed.

        

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