Documents Required for Canara Bank Personal Loan

All the personal loan features vary from each other based on the type of loan availed. Also there are different criteria for the personal loans like the eligibility, loan period, amount of the loan, rate of interest, security, processing fees, pre-payment charges, documentations required and so on.

So some of the common features of the Canara Bank personal loan as are below:

Must-Have Documents

Documents Required by Salaried Individuals

Personal Loan Documents required for self-employed individuals

Personal Loan Documents required for pensioners or senior citizens

This loan is available for senior citizens and pensioners to fulfill their financial needs. The rate of interest for the loan amounts 3% over the base rate. This is a bit different with the retired employees of the bank where the loan rate is 1.50% over the base rate.

Personal Loan Documents required for Non Residential Residents (NRIs)

The personal Loan for NRIs is offered with the following criteria for eligibility:

• All the non-residential Indians need to have a valid Indian passport or the persons of Indian origin having a foreign passport.
• The age to avail the loan ranges from 21 years to 60 years.
• The applicant must have a NRI status for minimum 3 years.
• Needs to have a valid work permit or job contract for at-least 2 years.

Having a bank account is very important for all the financial dealings and we use the same for all the inflows and outflows. It is also vital for various government subsidies and tax refunds. All our financial transactions are recorded in the bank statement and it will help the banks to gauge the financial status and credibility of the loan applicant. A minimum of 6 months bank statement needs to be provided in order to show the flows of cash and the expenses. It also helps to know the risk adversity of loan repayment.

Therefore, a bank statement or a bank passbook is a record book, which has all the information about our cash activities and transactions. The account holder has his/her own benefits, which helps them to know the cash inflows and outflows and helps to control the expenses in case it's exceeding. On the other hand, the banks or the lending institutions get to know the information that helps them to find out the credit worthiness and the loan repayment capability of the applicant. The applicants whose bank account shows no delay in payments, no cheques bounces or no negative balances are more preferred for the loan application. Hence, it is very vital that an applicant has a bank account and the bank statement.

Importance of Credit Rating to take a Personal Loan

A loan applicant's credit rating plays a vital role in availing a personal loan as it showcases the credit worthiness and the financial status of an applicant.

Depending on how you use the personal loan, it can help you to boost your credit score in several ways such as:

• It helps you to build a payment history by paying the loan EMIs on time and it will definitely boost your credit rating.
• It helps you to have a better credit mix which helps to boost the credit worthiness of the loan applicant.
• Using a personal loan to pay the revolving credit helps to improve your credit scores by replacing the revolving debt.

Sometimes it also harms the credit score of a loan applicant like:

• There are a number of fees or charges, which are applicable in case of personal loans, and it may arm your credit scores. Apart from the interest rates, there are processing charges, pre-payment charges and other fees, which harms the credit worthiness.
• Availing a personal loan takes you deeper into the debt whether it for any financial need and it burdens your credit scores.
• In case there are continuous delays in the payments of EMIs or other credit payments then it affects your credit report and gives you a lesser chance for availing the loan.

Just because personal loans can benefit you, does not mean you can go on taking loans as it has a number of factors affecting them. Such as:

Credit History

A credit history depicts your way to handle the credit and payments, so it is vital that you have a fair and timely payment system, which will in-turn affect your credit score to avail a personal loan.

Previous debts

Depending on the loans, which already exist, and how the payment for the same is done on a monthly basis affects an applicant?s loan availing capability. The more the debts you are in, the lesser are the chances to avail a new personal loan.

Employment and Income

The employment status of an individual and the salary drawn effects the loan of the applicant. One should make sure that there is a steady income on a monthly basis and should maintain a minimum balance in the bank account in order to successfully avail a personal loan.

Applicant's Age

There is a certain age limit in order to avail a personal loan depending on the type of the loan that one needs. Usually it ranges from 21 years to 60 years with certain conditions apply based on the type of the loan.

Each bank has its own loan scheme and the way to apply for it. It is very easy to apply for a loan through mymoneymantra.com as it helps the applicant to avail all the information and documents required in a handy way. The website collates all the information on a single page so that it makes our task easier.

This user-friendly portal makes it easy-to-use for all. To apply for a Personal Loan through MyMoneyMantra one needs to give the following information:

• Name
• The amount of loan required
• Employment type, whether salaried or self-employed
• Details of employer or business
• Current Income
• Information about ongoing EMIs
• Place of Residence
• Type of residence, whether rented, self-owned or company provided
• Number of years in the same residence
• Date of Birth
• Years of work experience
• Email ID and Mobile Number

Once the loan applicant submits the loan application, the representatives from MyMoneyMantra will contact the applicant to process the personal loan enquiry further.

• MyMoneyMantra has experts who will access the applicant's profile and determine eligibility.
• It helps you to find out your credit worthiness and payment history and also advises accordingly.
• Helps you to compare different loan products and their rate of interests to make a better choice.
• It is hassle free to use and documentation is up-to-mark with clarity.
• Customized services for loans on the basis of applicant's income level and repayment capacity.