Canara Consumer Loan

Canara Consumer loan is provided by Canara Bank to customers for the purchase of brand-new home appliances and other utility articles. The current interest rate for the loan is 13.15%. The loan tenure can go up to 36 months. The processing fee is 1% of the loan amount, subject to a minimum fee of Rs.250.

All Canara Bank branches can sanction the loan. The loan has a floating rate of interest.

Eligibility Criteria

The eligibility conditions to be fulfilled by applicants for the Canara Consumer loan are as follows: 

• Borrowers can be businessmen, salaried individuals, or professionals. 
• Salaried applicants should have a minimum net monthly salary of Rs.6,000 or 40% of the gross salary (whichever is higher) after the EMI is paid for the loan. 
• Non-salaried borrowers and professionals should have a minimum annual net income of Rs.1.5 lakh as per the Income Tax Return (ITR) or Income Tax Assessment Order (ITAO). 
• For salaried borrowers, the salary account should be with Canara Bank. Alternatively, a mandate can be initiated with the employer so that installments are easily recovered. 
• The income of the applicant’s spouse can be taken into account to fulfill the eligibility requirements. 

Loan Amount for Canara Consumer Scheme

The quantum of loan available under the Canara Consumer scheme is as follows: 

Fees and Charges

• There is no prepayment penalty for the loan. 
• Processing charges are 1% of the borrowed amount, subject to a minimum of Rs.250. 
• Insurance charges are waived. 

It should be noted that during the pendency of the first loan, the borrower may also take a second loan as long as there are no overdues in the former loan and the eligibility conditions are met. 

Documents Required

The following documents need to be submitted when applying for the Canara Consumer loan: 

• The loan application form, duly filled in 
• 2 passport-sized photographs of the applicant 
• The latest salary certificate and Form 16/ITAO/ITR for the preceding 3 years 
• Proforma Invoice of the appliance or article that is being purchased through the loan 

Security for the Canara Consumer Loan

• The borrower can hypothecate the articles purchased with the loan amount. 
• He/she can also provide a suitable co-obligation or personal guarantee. However, there are chances that the co-obligation or personal guarantee may be waived based on the merit of the case.