Canara Bank Loan for Senior Citizen Scheme
Founded in 1906 and nationalised in 1969, Canara Bank has been on the growth trajectory to emerge as the 'preferred bank' owing to achievement of various global benchmarks such as high-quality profitability, operational efficiency and risk management among others. Canara Bank has become a major financial conglomerate in India and currently has around nine joint ventures, 9132 ATMs, 147 hi-tech E-lounges and 5727 branches.
The bank has made a mark in several corporate social responsibilities such as promoting rural self-employment via training institutes and rural development among others. Canara Bank has launched various products and services such as digital life certificates and EMV chip cards besides an enquiry portal for social security schemes.
Canara Bank offers several services from personal banking and priority banking to NRI banking and SME banking. Canara Bank offers loans for senior citizens as well.
Benefits of Senior Citizen Loan Scheme by Canara Bank
Given below are the reasons why one must consider applying for a senior citizen scheme by Canara Bank:
- Greater loan amount
- There are no processing fees
- NIL margin
- Reduced interest rate
- Lowering the interest rate on balance
- No penalty for early payments
- Fast loan approval and distribution
What can this loan be used for?
Loan for senior citizens offered by Canara Bank can be used to meet various medical expenses besides any personal requirements of pensioners.
Who Can Avail the Loan for Senior Citizens Offered by Canara Bank?
Pensioners eligible to receive pension are listed below:
- Canara Bank pensioners
- Central government pensioners (e.g, railways, freedom fighters, defence, armed forces, defence civilians)
- State government pensioners
- Public sector undertakings' pensioners
- Family pensioners of deceased retired employees all the aforementioned categories
Eligibility Criteria for Canara Bank Senior Citizen Loan
The net take home income should be 40% excluding the equated monthly installment) of the loan
Documents Required
The following documents need to be submitted to apply for this particular loan scheme:
- Two passport-sized pictures of the applicant, co-applicant, or guarantor must be included with the loan application.
- KYC records of the guarantor, co-applicant, or applicant.
- Evidence of residency, such as a driver's license, voter ID, passport, Aadhar card, electricity bill, phone bill, etc.
What are the Terms Associated with this Loan?
The following table shows details regarding the guarantee to be offered under this scheme
Type of pensioners | Guarantee |
Loan to pensioner | Co-obligation of the spouse or another individual |
Family pensioner | Co-obligation (third party) |
FAQs on Canara Bank Loan for Senior Citizen Scheme
- What is the maximum loan amount which can be availed under the Senior Citizen loan scheme?
The maximum loan amount which can be availed by pensioners under this scheme is Rs.2 lakhs or 10 months' pension. In case of retired employees of Canara Bank and its family pensioners, the amount may extended is Rs.2 lakhs for 15 months.
- What is the interest rate charged by Canara Bank for Senior Citizen loan scheme?
The interest rate for all loan schemes offered by Canara Bank is based on its base rate. The interest rate offered by Canara Bank for this scheme is base rate +2.80% p.a (floating). The base rate of Canara Bank is 9.65% (October 2015).
- What is the repayment period for Senior Citizen loan scheme?
The repayment period for pensioners below 65 years is 60 EMIs while for those above 65 years is 48 EMIs.
- How can one apply for Senior Citizen loan scheme?
Customers can apply and track the status of their loan application online at the official website of Canara Bank.
- What are the processing charges to be incurred under Senior Citizen loan scheme?
Canara Bank does not impose any processing charges for senior citizen loan scheme.
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