Canara Bank Personal Loan Interest Rates

Canara Bank personal loan interest rates are fixed and vary from 11.25% to 13.90% p.a. Apart from interest rate, the borrower also has to pay a processing fee of 0.5% of the loan amount. The bank offers loan up to Rs. 3 Lakhs for tenure up to 60 months.

Canara Bank Personal Loan Interest Rates Details

Canara Bank personal loan interest rates are affordable and vary from 11.25% to 13.90% p.a. The rates are linked to Repo Linked Lending Rate (RLLR) and vary according to the type of scheme, borrower’s eligibility and loan amount. In addition to the interest rate, a processing fee of 0.50% of the loan amount + GST is also levied. 

The current RLLR is 6.90% w.e.f 07.10.2021 and the details of interest rates are as given below:

Type of LoanCIC - Risk GradeSpreadEffective Interest Rate (p.a.)

Canara Budget - Individual

 

 

 

CS : 1RLLR + 4.3511.25%
CS : 2RLLR + 4.4011.30%
CS : 3RLLR + 4.9011.80%
CS : 4RLLR + 6.4013.30%

Canara Budget - Special Package

 

With salary Tie UpRLLR + 4.4011.30%
Without salary Tie UpRLLR + 5.4012.30%

Teacher's Loan

 

 

 

CS : 1RLLR + 410.90%
CS : 2RLLR + 4. 0510.95%
CS : 3RLLR + 4.5511.45%
CS : 4RLLR + 6.0512.95%
Canara Pension LoanTo general publicRLLR + 3.3010.20% 
To Canara Bank retireesRLLR + 2.109% 

All Other Personal Loans

 

 

 

CS : 1RLLR + 5.5012.40%
CS : 2RLLR + 5. 5512.45%
CS : 3RLLR + 6.0512.95%
CS : 4RLLR + 713.90%

Canara Bank Personal Loan Fees & Charges

Personal Loan TypeProcessing Fee
Canara Budget0.50% of the loan amount with a minimum of Rs. 1,000 and a maximum of Rs. 5,000
Teachers’ Loan1% of the loan amount with a minimum of Rs. 50
Canara PensionNil

Canara Bank Personal Loan Details 

Interest Rate

Starting @ 11.25%

Check Best Offers

Processing FeeUp to 0.50% of the loan amount 
Loan Amount6 months gross salary or Rs. 3 Lakhs, whichever is less
Loan TenureUp to 5 years
Lowest EMI Per Lakh₹ 2,185 for 5 years
Prepayment ChargesNil charges for floating rates loans
Minimum incomeRs. 10,000 per month

Factors Affecting Canara Personal Loan Interest Rates

The following factors can affect Canara Bank personal loan interest rates:

  • Loan amount: A higher loan amount can reduce or increase the rate of interest.
  • Repayment tenure: A longer tenure might attract a lower or higher interest rate.
  • Borrower’s repayment capacity: The income and repayment capability of the borrower can also affect the personal loan interest rates. The bank may decide the interest rate for the loan based on the income of the borrower.
  • Assets: Presence of financial assets also play a crucial loan in providing a preferential interest rate for personal loans.
  • Existing relationship with the bank: Existing customers of Canara Bank are bound to get preferential rates when applying for a personal loan.
  • CIBIL score: The CIBIL score also works in favour of getting a better personal loan interest rate from the bank.

Why Apply for Canara Bank Personal Loan?

There are innumerable reasons to opt for Canara Bank Personal Loan:

  • Canara Bank Personal Loan is categorised as per the requirement, income level, and type of employment.
  • The loan can be utilised for multiple purposes, like the purchase of consumer durables, for repair and renovation of your home, to meet medical expenses, for the higher education of your children, for the wedding of your children or siblings, etc.
  • The bank offers a Personal Loan at competitive rate of interest to meet market standards
  • The repayment option is flexible. You can either choose a short term or long term repayment option depending on your repayment capacity.
  • The charges associated with the loan are nominal.
  • The loan can be either prepaid in full or part without any penalty.
  • The eligibility criteria are not complex  and can be complied with easily.

Canara Bank Personal Loan Interest Rate Comparison with Other Lenders

Name of LenderRate of Interest (per annum)
Canara Bank11.25% - 13.90%
Central Bank of India9.85% - 10.05%
Axis Bank10.49% - 24%
SBI9.60% - 15.65%
ICICI Bank10.50% - 19%

Canara Bank Personal Loan Features

  • Purpose: The loan can be utilized for various purposes, like the consolidation of debts, the purchase of durable utility articles, for repairs and renovation of your home, to meet medical expenses, wedding expenses, to plan a family vacation, for the higher education of your children, etc.
  • Quantum: You can avail a loan up to Rs. 3 Lakhs, depending on your employment type and repayment capacity. Higher amounts may also be considered, depending on the customer profile and relationship with the bank.
  • Rate of interest: Competitive rate of interest to meet market standards.
  • Flexible repayment: The loan can be repaid in easy installments up to a maximum repayment period of 60 months, depending on the type of loan availed.
  • Turnaround time: The maximum turnaround time for conveying the approval of the loan is 7 days.
  • Documentation: The checklist for the documents required by the bank is very simple and the paperwork involved is minimal.
  • Processing charges: Nominal processing charges  will be collected
  • Pre-closure: You are permitted to pre-close the loan after a lock-in period with nominal charges
  • Tracking offline/Online application status: You can track the status of the application online on the website of the bank by providing the application number.

How to Calculate Canara Bank Personal Loan EMI?

To calculate the EMI is necessary to understand your eligibility even before applying for the loan. If the loan amount you are eligible for is in proportion to your affordable EMI, you can contemplate availing the loan in joint names along with your close family members wherever permitted in order to increase the eligibility.

You can calculate the EMI by applying the formula P*R* (1+R)^N/([(1+R)^N]-1)manually. P represents the principal amount, R represents the rate of interest and N represents the tenure. But an easier way is to calculate the EMI with the help of the EMI Calculator that is available on the website of the bank or on the website of MyMoneyMantra.

All you have to do is to give the details of the loan amount, loan tenure, and the rate of interest. On clicking the calculate button, the EMI will be given instantly. You can do the calculation multiple times until you get the desired EMI. The benefit of using MyMoneyMantra EMI calculator is that you will have access to the data regarding the rates and charges of different institutions with the help of which you can pick on the best deal.

Canara Bank Personal Loan Eligibility

The personal loan eligibility criteria that have to be complied with to qualify for Canara Bank:

For Canara Budget

  • The applicant should be a confirmed employee of  Central/State Government Departments/PSUs and Joint Stock Companies.
  • Lecturers/Professors and Asst.Professors of Colleges/Research Institutions and Universities with confirmed employment are also eligible for the loan.
  • Confirmed Employees of IT/BT Companies can also apply for the loan.
  • The salary account of the employee has to be maintained with Canara Bank.
  • The minimum net take-home salary after providing for the proposed EMI should not be less than 25% or Rs. 10,000, whichever is higher.

For Teachers Loan

  • Teaching and non-teaching staff of schools and colleges who are confirmed in service.
  • The salary account should be maintained with the bank.
  • An undertaking letter from the salary disbursing authority at District/Block level stating that the salary account will not be shifted without obtaining NOC from the bank branch where the account is maintained.
  • The net take-home salary should not be less than 30% or Rs. 10,000, whichever is higher after providing for the proposed EMI.

For Canara Pension-General Public

  • All Central Government/State Government Pensioners.
  • Pensioners of Government Department Undertakings.
  • Pensioners of  PSUs/Corporate Pensioners.
  • Family pensioners of all the above categories of pensioners.
  • The pension account should be maintained with the bank.
  • The net monthly pension should be 40% of the gross pension after providing for the proposed EMI.

Documents Required for Canara Bank Personal Loan

The following are the documents required for different types of Personal Loans of Canara Bank:

Type of DocumentSalariedSelf-employed
Address ProofVoter's ID Card, Aadhar Card, Utility bills, Driving Licence, etc
Photo ID ProofPan Card, Passport, Driving Licence, Aadhar Card, Voter's ID Card
Income Proof
  • Salary Slip for the last 3 months or latest Salary Certificate with all the deductions.
  • Latest Form 16 and ITR
  • Bank statement for the last 6 months showing salary credit to the account
  • Audited Balance Sheet and profit and loss account for the last 3 years.
  • ITR with income computation for the last 3 years.
  • Bank account statement for the last 6 months
ApplicationPrescribed application for the type of Personal Loan preferred duly completed and signed.
PhotographTwo passport size photographs of the applicant and the co-applicant/guarantor.
Other documentsIn the case of salaried individuals, a mandate from the employer for deduction of the instalment from the salary.

How to Apply for Canara Bank Personal Loan?

To apply for Canara Bank Personal Loan through MyMoneyMantra, you will have to access the website of MyMoneyMantra and choose the Personal Loan under the Loans option.

After the choice is made, you will have to provide some mandatory details as given below:

  • Name
  • Email address
  • Current location
  • Current employment
  • Details of current employer and income
  • Type of employment-whether salaried or self-employed
  • Type of residence-whether owned or rented
  • Date of birth
  • Purpose of the loan
  • Loan amount
  • Loan tenure
  • Mobile number

An OTP will be sent to your mobile number as a part of verification. Thereafter a page will open and you will have to log in to the page using the OTP. Here the data of various rates and offers of different financial institutions/banks will be provided for you to choose from. You can choose Canara Bank and proceed for the filling up of the application. Once the request is placed, the representative of MyMoneyMantra will collect the required documents from your doorstep and will take it further from there till the disbursement of the loan.

Canara Bank Personal Loan Customer Care Number

You can contact the toll-free number 1800 425 0018 for any queries regarding Persona Loan. The services of this number are available 24 x 7.

Kotak Personal Loan Festival Offer 

Ahead of festival season, Kotak Mahindra Bank has announced Rs 999 flat processing fee offer on Personal Loans. Customers can avail of instant approvals on personal loan applications up to Rs. 20 Lakhs at lowest interest rate starting at 10.25% p.a for maximum of 5 years. 

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Canara Bank Personal Loan Interest Rates FAQs

Who can apply for Canara Bank Personal Loan?

  • If you are a salaried individual employed with Government Organisation/ PSUs/ Joint Stock Company or if you are a Professor/ Asst. Professor in colleges/ research institutions or if you are employed with IT/ BT Companies and confirmed in service, you can apply for Canara Budget or Canara Consumer Loan. Self-employed professionals/individuals and businessmen can also apply for Canara Consumer Loan.
  • If you are teaching or non-teaching staff in schools/ colleges and the salary is credited to an account maintained with the bank, you can avail of Teachers Loan.
  • If you are a State/ Central Government pensioner drawing pensioner through an account with the Bank, you can avail of Canara Pension-General Pension Loan.
  • Maintaining a salary account at the bank in the case of salaried individuals is mandatory

What is the quantum of loan provided under Canara Bank Pension Loan?

  • The maximum quantum of loan for Canara Budget is 6 times the gross salary or Rs. 3 Lakhs, whichever is lesser, subject to the net-take home salary being 25% of the gross salary or Rs. 10,000, whichever is higher after providing for the proposed EMI.
  • The maximum quantum for Teachers Loan is 10 times the gross salary or Rs. 3 Lakhs, whichever is less, subject to the net take-home salary being 30% of the gross salary or Rs. 10,000, whichever is higher after providing for the proposed loan.
  • The maximum quantum for Canara Pension-General Public loan is 15 times the monthly pension or Rs. 5 Lakhs, whichever is less subject to the net pension being 40% the gross pension after providing for the proposed EMI.
  • The maximum quantum for Canara Consumer Loan in the case of salaried individuals is 75% of the invoice value or 15 months' net salary or Rs. 1 Lakh, whichever is less. The maximum quantum in the case of the self-employed is 50% of the net annual income as per the IT Returns or 75% of the invoice value or Rs. 1 Lakh, whichever is less.

What is the rate of interest charged for Canara Bank Personal Loan?

The rate of interest charged ranges from 11.25% to 13.90% p.a., depending on the type of loan availed and the internal risk rating.

What is the repayment period stipulated for Canara Bank Personal Loan?

The repayment period ranges from 12 months to 60 months, depending on the type of loan availed and the repayment capacity.

Is there a provision to avail a second loan during the pendency of one loan under Canara Bank Personal Loan Scheme?

Yes. You can avail a second consumer loan during the pendency of the first one provided the maximum quantum is not exceeded and is within your repayment capacity. The existing loan should have been serviced regularly to be eligible for the second loan.