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Documents Required for Canara Bank Personal Loan

A personal Loan is an unsecured loan that is given for an eligible person in order to fulfill his/her monetary needs. A personal loan does not require any collateral but there are a number of requirements that are looked upon before availing a personal loan to a person such as monthly income, age of the person, employment status, and documentations. All the personal loan criteria vary on the basis of the loan type and also from bank to bank.

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Features of 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:

Principal Amount

 

The principal loan amount that is offered by Canara Bank under the different personal loan schemes goes up to 5 lakh.
Flexible Loan PeriodThe period of loan repayment depends on the type of personal loan availed and it varies from 34 months to 60 months to 120 months.
Multiple optionsThe bank offers a number of loan schemes which are designed for different individuals. These schemes include Canara Budget, Canara Pension, Canara Teachers Loan, Canara Rent loan and many more.
Online applicationThe personal loan can be applied online from the comfort of home or even from office. It also ensures less documentation and a quick disbursal of the principal loan amount
Purpose of Loan

The proceeds of a personal loan provide financial assistance to meet personal needs

 

No end-use certificate required.

EligibilityAny salaried, self-employed or pensioner is eligible to avail the loan.
Processing FeesIt is charged at a rate of 0.50%.

Documents Required for Canara Bank Personal Loan

Must-Have Documents

Identity ProofPAN Card/ Voter's ID/ Aadhaar Card/ Passport/ Driving License
Address ProofBank Account Statement/ Aadhaar Card/ Lease/ Property purchase Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
Income Proof

Salaried Individuals: Salary Slip/ Bank Account Statement/ Form 16

Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank Account Statement

Business ProofCertificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

Documents Required by Salaried Individuals

Proof of identification
  • PAN card
  • Passport
  • Driving License
  • Voter's ID
  • Employee ID
  • Bank passbook
  • Ration card
Address proof
  • Passport
  • Utility bill (telephone, electricity, water, gas) - less than 2 months old
  • Letter from a recognized public authority verifying the customer?s residence address
  • Bank passbook or Bank account statement
  • Voter's ID
  • Ration card
  • LIC policy/ receipt
Proof of income depending on type of employment 
  • Payslip (for the last 3 months)
  • Bank Statements (for 3 to 6 months)
  • Passbook (for 3 to 6 months)
  • Increment or Promotion letter from the employer
  • Certified letter from the Employer
Residence ownership proof 
  • Property documents
  • Maintenance bill
  • Electricity bill
Tax Payment 
  • IT returns details for 2 years
  • Form 16 to be submitted
Proof of job Stability
  • Present job appointment letter (in case, more than 2 years have been completed in the same job)
  • Current employment certificate from the employer
Experience certificate (including previous job certificate or appointment and relieving letter)
  • Bank statement for the previous 6 months and salary statements.
  • In case of any existing loan, one needs to submit the sanction letter and payment track record report.
  • Investment proof in case of any fixed deposit, fixed assets, and shares.
  • Passport size, colored photograph

Personal Loan Documents required for self-employed individuals

Proof of identification
  • PAN card
  • Passport
  • Driving License
  • Voter's ID
  • Employee ID
  • Bank passbook
  • Ration card
Address proof
  • Passport
  • Utility bill (telephone, electricity, water, gas) - less than 2 months old
  • Letter from a recognized public authority verifying the customer's residence address
  • Bank passbook or Bank account statement
  • Voter's ID
  • Ration card
  • LIC policy/ receipt
Residence ownership proof
  • Property documents
  • Electricity bill
  • Maintenance bill
  • Property Tax receipt
Office address and ownership
  • Property documents
  • Electricity bill
  • Maintenance bill
Proof of business presence
  • Sale deed or sale agreement
  • Saral copy (3 years old)
  • A copy of tax registration
  • Company registration license and certificate
Proof of Income
  • Last 2 years IT returns along with computation of income duly attested by a Chartered Accountant
  • Audited balance sheet and P&L accounts including tax audit report.
Bank statementLatest 1 year bank statement for both savings and current account
PhotographPassport size, colored photograph
Investment proofFixed deposit, fixed assets, and shares.
Existing loansIn case of an existing loan one needs to submit sanction letter, payment track record report.

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.

Proof of identification
  • PAN card
  • Passport
  • Driving License
  • Voter's ID
  • Employee ID
  • Bank passbook
  • Ration card
Address proof
  • Passport
  • Utility bill (telephone, electricity, water, gas) - less than 2 months old
  • Letter from a recognized public authority verifying the customer?s residence address
  • Bank passbook or Bank account statement
  • Voter's ID
  • Ration card
  • LIC policy/ receipt
Bank statementLatest 1 year bank statement for both savings and current account
PhotographPassport size, colored photograph
Application FormDuly Filled Loan Application form with 2 copies of passport size photographs
SecurityCo-obligation (unless waived)
Proof

Delivery letter to DPN

Letter to Pension Disbursing Authority (In case of Pensioners)

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.
Proof of IdentityCopy of first four pages of passport and page with visa stamp or IC/PIO card.
ApplicationStipulated Loan Application with 2 passport size photographs.
Employment Status
  • Valid work permit.
  • Copy of the employment contract. Last Salary certificate / slip in original.
  • Copy of Salary certificate duly attested by Indian Embassy/ Employer.
  • Copy of identity card issued by the current employer / proof of income in case of self-employed professionals / businesspersons.
  • Brief profile of the applicant and work establishment.
  • Details of previous employment.
Financial Status

Statement of bank account or passbook for the last 6 months.

Account statement of overseas bank showing salary and savings details.

 

Proof of AddressProof of residence (driving license or utility bills)
Other Documents

A copy of Continuous Discharge Certificate (CDC) for applicants' job in the merchant navy.

Details on nature of business, year of establishment and type of organization (for self-employed)

Importance of Bank Statement or passbook to avail a Personal Loan

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.

Factors Affecting your Personal 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.

How to apply for a Personal Loan through My Money Mantra's website?

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.

Benefits of applying for a Personal Loan through MyMoneyMantra

  • 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.

Navi Personal Loan @9.99% p.a

Now get Navi personal loan of Rs. 10,000 to Rs. 20 Lakhs at lowest interest rate starting from just 9.99% per annum. Repay in easy instalments of 3 to 72 months. The processing fee ranges from 2.5% to 6% of the sanctioned limit + GST.

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Documents Required for Canara Bank Personal Loan FAQs

What is the collateral one should furnish to avail a personal loan?

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There is no collateral required when it comes to Canara Bank personal Loan. The loan is approved with third party guarantee.

Is pre-payment applicable for personal loans?

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Prepayment is applicable for personal loans in Canara Bank and it is allowed at Nil charges.

What is the age limit for availing a personal loan from Canara Bank?

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The loan applicant must be of age between 21 years to 60 years to avail a personal loan under any scheme.

What are the must-have documents to avail a personal loan at Canara Bank?

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Must-Have Documents

Identity ProofPAN Card/ Voter's ID/ Aadhaar Card/ Passport/ Driving License
Address ProofBank Account Statement/ Aadhaar Card/ Lease/ Property purchase Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License
Income Proof

Salaried Individuals: Salary Slip/ Bank Account Statement/ Form 16

Self Employed: Previous Year ITR/ P&L Statement and Balance Sheet/ Bank Account Statement

 

Business ProofCertificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

Is sale deed necessary for availing a personal home loan from Canara Bank?

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Yes, Sale deed and agreement for sale is mandatory to avail a personal loan at Canara Bank.

What documents are required for a Personal Gold loan?

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Apart from the must-have documents one needs:

  • Application of Swarna loan
  • A certificate by the Jewel Appraiser (it will be arranged by the bank)
  • Salary certificate and income proof

What is the lowest rate of interest for a Canara Bank personal loan?

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13% is the lowest interest rate for the Canara bank personal loans.

What is the proof of identification for NRI?s under Canara Bank personal loans?

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A photocopy of first four pages of the passport and page with visa stamp or IC/PIO card and a valid work permit serves as an identity proof for the NRIs.

What are the documents required for Canara Cash (shares)?

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Apart from the must-have documents one also needs the following:

  • A loan application with 2 passport sized colored photographs.
  • The latest salary certificate or the income proof IT return.
  • Financial Statements for the last 2 years (For non-salaried applicants)
  • A Guarantee or a co-obligation in case it is necessary.
  • A statement of holding of scripts, which is issued by DP.

What is the loan repayment tenure by Canara Bank?

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The maximum loan repayment tenure for personal loans at Canara Bank is 60 months.