Canara Bank



Apply Canara Bank Personal Loan

About Canara Bank Personal Loan

Canara Hindu Permanent Fund was established by Ammembal Subba Rao Pai in 1906 in Mangalore. The bank was incorporated in 1910 by the name Canara Bank Limited. Today, Canara Bank is amongst the largest public sector banks owned by the Government of India. The bank has just over 10,000 ATMs and over 6,500 branches across the nation. Canara Bank has its operations in other countries too, including Moscow, Shanghai, Doha, Bahrain, Hong Kong, New York, Tanzania, Dubai, and London.

Canara Bank Limited extends financial facilities to both corporate houses and individual customers. The flagship product of Canara Bank is the Personal Loan offered by them. A Personal Loan from Canara Bank Limited may come very handy when you want to buy a car or need funds for a marriage in the family. There are various forms of Personal Loan that can be availed from Canara Bank like Canara Budget, Canara Pension - General Public, Teachers Loan, and Canara Consumer Loan. The type of loan you apply for depends on your requirement.

Canara Bank Personal Loan Interest Rate - Apr 2021 (updated)

Interest rate

11.30% - 13.90%

Loan tenure

4 Years

Loan turn around period

1-7 Days

Processing Charges

up to 1%  of loan sanctioned + Taxes

Who can apply?

Self-employed professionals

Salaried individuals

Indian residents

Dishonour Charges

750 per instance

Lowest EMI

2,599  Per Lakh

Why Canara Bank Personal Loan?

There are various reasons why you should avail a Personal Loan from Canara Bank, such as:

  • Personal Loans by Canara Bank can be used to meet any financial need like home renovation, vacation, marriage, medical expenses, or even purchasing home appliances, furniture, durable utility articles, computers, laptops and other electronic gadgets.

  • The bank offers loan to both - salaried and self-employed individuals at affordable interest rates.

  • Depending on your need, profession type and eligibility, you can avail the best suitable loan type among their various Personal Loan schemes.

  • You can avail a high-value loan and repay it in a flexible tenure.

  • The bank has easy eligibility criteria so that you can get instant Personal Loan.

Features and Benefits of Canara Bank Personal Loan

  • A wide variety of schemes: Canara Bank provides an extensive range of Personal Loan products, each designed to fulfill a specific purpose.

  • Superfast application process: The loan application process is super easy and fast. You just have to go to the Canara Bank website or MyMoneyMantra to apply for a Personal Loan online from the comfort of your home. Also, you will be pleased by the speedy disbursal of the loan amount to your bank account.

  • Minimal documentation: Canara Bank asks you to furnish documents relevant to the loan. You will not be required to furnish any unnecessary paperwork. This contributes to fast loan processing.

  • Easy repayment: The bank gives you enough time to repay the loan as the loan tenure is prolonged. Also, the loan can be repaid in easy equated monthly instalments (EMIs) without compromising your monthly budget.

  • Pre-closure: Borrowers can opt to foreclose their loan before the due date at nominal foreclosure charges. However, foreclosure of the loan can be done after a certain period of time (as specified by the lender).

  • Low processing fee: The borrower has to pay a minimal processing fee. In some specific cases, no processing fee is levied.

  • Status tracker: With the status tracker tool of Canara Bank, you can actually follow your loan application process to know its current status.

  • Dedicated customer care: There is a dedicated customer care team available 24x7 to solve your issues and problems during the loan application and even after the disbursal of the loan amount.

Canara Bank Personal Loan Interest Rates

Scheme Rate of interest The present rate of interest

Canara Budget

One year MCLR + 2.30% to One year MCLR + 5.30%


Canara Pension - General Public

One year MCLR + 3.20%


Teachers Loan

One year MCLR + 3.95%


Canara Consumer Loan

One year MCLR + 4.45%


*1 year MCLR as on 16.11.2018 is 8.70%

Canara Bank Personal Loan Processing Fee and Other Charges

  • Processing Fee for Canara Budget: 0.5% of the sanctioned loan amount (minimum 1000 to maximum 5000).

  • Processing Fee for Teachers Loan: 1 % of the sanctioned loan amount (minimum of 50).

  • Processing Fee for Canara Pension-General Public: Processing fee is waived off under this loan scheme.

  • Processing Fee for Canara Consumer Loan: 1 % of the sanctioned loan amount (minimum 250).

Types of Personal Loans Offered by Canara Bank

Canara Budget: This loan can be availed by salaried individuals to meet any genuine personal or domestic need other than speculative purpose. The maximum loan amount that can be availed under this loan is 6 months gross salary or 3 Lakhs (whichever is less). The loan can be repaid in maximum 5 years.  

Canara Pension - General Public: This loan can be availed to meet medical expenses or other genuine personal need of the Pensioners. The maximum loan amount that can be availed under this scheme is 5 Lakhs or 15 months' pension amount (whichever is less). The loan can be repaid in 6 years (if the age of the pensioner is below 65 years) or 5 years (if the pensioner is 65 years of age or above).

Teachers Loan: This loan is tailored for teachers to help them meet their any genuine financial needs. You can get a loan quantum of up to 3 Lakhs or 10 months' gross salary (whichever is less) and repay it under 4 years.

Canara Consumer Loan: This loan scheme is offered to individuals to purchase new home appliances, durable utility articles, furniture, electronic gadgets, computers/ Laptops, and other consumer durables. Salaried individuals can get a loan amount of up to 15 months' net salary or 75% of the invoice value or 1 Lakh (whichever is less). If you are a professional or non-salaried individual, you can get a loan amount of up to 50% of your annual net income in last year or 75% of the invoice value or 1 Lakh (whichever is less). The loan amount can be repaid in a maximum tenure of 3 years.

Canara Bank Personal Loan Eligibility Criteria

Eligibility Criteria for Canara Budget

  • Applicant must be an employee of a reputed PSU/ Joint Stock Company/ Central Government/ State Government/ IT Company/ BT Company or a Lecturer/ Assistant Professor/ Professor of a College, University or Research Institute.

  • Applicant must have a salary account with Canara Bank.

  • Applicant must have a minimum monthly net take home salary of 25% or 10,000 (whichever is higher) after deducting EMIs of current loan obligations.

Eligibility Criteria for Canara Pension - General Public

Only following pensioners are eligible for this loan if they're drawing their pension through Canara Bank branches:

  • Central Government Pensioners (who had worked with Central, Civil, Defence, Armed Forces, Railways, Defence Civilians, Freedom Fighters, and so on).

  • Pensioners of State Government

  • Pensioners of all Government Department Undertakings/ Public Sector Undertakings.

  • All Corporate Pensioners

  • Family Pensioners belonging to all the above categories.

Eligibility Criteria for Teachers Loan

  • All teaching or non-teaching staff who are confirmed and working in a school or college. They must be drawing salary through Canara Bank branches. They must have an undertaking letter issued by the salary disbursing authority at District or Block level.

  • The applicants must have a minimum net take home salary of minimum 30% (of the gross salary) or 10,000 (whichever is higher) after meeting the proposed EMI.

Eligibility Criteria for Canara Consumer Loan

Following types of applicants are eligible to avail this loan:

  • All individuals (whether they are salaried/professionals/businessmen).

  • Salaried individuals must have a minimum monthly net pay of 40 % of the gross salary or 6,000 (whichever is higher) after meeting the instalments for the proposed loan.

  • Professionals/ other non-salaried individuals should have a minimum annual net income of 1.5 Lakhs assessed by the Income Tax Assessment Order/ Income Tax Return.

  • The salaried applicant's salary should be credited to their operating account at Canara Bank's branch.

  • Applicants can add the income of their spouse for satisfying eligibility criteria.

What are the Factors that Affect Eligibility

Canara Bank Personal Loans only use a co-obligation as security. This means that there is no financial security that the applicant provides towards the loan.

Loans are based on the eligibility criteria fulfilled by the applicant, and thus, loan terms are also negotiable. Factors that determine the eligibility of an individual for a Canara Loan include:

Credit History: To avail a Personal Loan with Canara Bank, the individual should have a Credit Score of at least 750. The Credit Score is based on the Credit History of the applicant, which includes the repayments made towards loans, Credit Cards, and other credit facilities that are availed.

It also includes the types of loans that have been availed. The better is the Credit Score; the better is the Credit Worthiness of the applicant. Banks provide higher loan amounts and a lower interest rate to customers who have a better Credit Score. This shows that the repayment capacity of the individual is high and also shows that they are regular with repayments, making them a low-risk candidate for loans.

The income of the individual: The higher is the income, the higher is the loan amount provided by the lender. Every bank assesses debt to income ratio before approving the loan application. They also have a necessary minimum net salary cap that qualifies the individual for a loan. The debt-to-income ratio determines the portion of the salary that can be consumed towards the loan repayment. For Canara Bank loan, this amount should be at least 25% to 30% of the loan amount based on the nature of employment of the individual.

Personal Loan Prepayment: EMI Consideration

Canara Bank provides a pre-payment option to customers who have paid at least one EMI towards the loan. You have the option of making a full repayment of the Principal amount before the repayment period.

The next option is to make part pre-payments of loan.

Part payment will reduce the Principal amount due towards the loan besides lowering the EMI each month. Customers have the option of paying either a lower EMI for same tenure or to maintain the same EMI and reduce the tenure.

A pre-closure is recommended only if it can be made in the initial period of the loan tenure as you can substantially save on the interest during the initial stage of the loan. However, towards the end of the tenure, you will only be losing access to liquid funds without saving much on the EMI.

Whenever possible, you can make part pre-payments to close the loan faster. This is a good idea especially in case of banks like Canara Bank that do not have any charges towards the prepayment of the loan.

Benefits of Choosing EMI Repayments

When you borrow any loan, the repayment must be made in the form of regular monthly EMIs.

EMI is Equated Monthly Instalments which includes "principal" as well as "interest" component for the loan. The benefits of choosing EMI repayment are many.

  • You get a lot of flexibility to repay your loan despite raising funds.
  • You do not lose access to cash/ surplus required for daily operations.
  • EMI repayments also help build a good Credit Score. When you diligently repay EMIs and maintain a good track record, it becomes easier to avail further financial assistance in the future.
  • EMI repayments also help you better plan your finances month on month.

What are the Factors That Affect EMI?

The formula used to calculate the EMI towards a loan considers three factors, the loan amount, the interest rate paid towards the loan and the tenure fixed for the repayment of the loan.

Here is how each factor affects the EMI that you will have to pay towards the loan:

The Interest Rate: Some banks offer a fixed rate of interest while others, like Canara Bank, provide a floating interest rate on Personal Loan. This interest rate is based on 1-year MCLR

If the interest rate is higher, the EMI will be higher as well. There are certain conditions under which the interest rate may be reduced. For individuals who have a higher CIBIL score, the EMI provided will be lower. The lesser is the risk involved with lending a loan to the individual, the lesser is the EMI.

Banks also provide special subsidies for certain categories. For instance, with Canara Bank, BSNL employees can get a subsidized interest rate. There are also special subsidies for women applicants. The nature of employment of the individual also determines the interest rate that will be charged.

The loan amount: The EMI is calculated based on the loan amount or the principal amount. The repayments made towards the loan each month will include a portion of the principal amount and the interest charged towards the loan.

The higher the loan amount, the higher the EMI that is paid towards the loan. In case the EMI is not within your budget, you have the option of reducing the principal amount.

The repayment tenure: The loan that you avail must be repaid within a certain tenure decided by the bank. This is called the repayment tenure.

For Personal Loans, loan tenor ranges between 1 to 5 years. The more the repayment tenure, the more the number of EMIs that are payable towards the loan. So, the EMI also reduces. However, it is advised that customers repay the loan in the shortest possible tenure and avoid paying out a huge sum towards the interest.

How to Choose the Best EMI?

A Personal Loan EMI Calculator helps you to understand the exact EMI that will be charged towards the loan each month.

Here are some tips to help you choose the most suitable EMI according to your requirements:

  • Deduct all the mandatory expenses such as household expenses, utility bills, kid's school fee etc along with the EMI from your take home salary. If your monthly budget does not allow the EMI burden, go for a smaller loan. Adjust rate of interest and repayment tenure to make the EMI affordable. For, an affordable EMI is a first step to successful repayment of loan. 
  • If possible, look for an EMI that allows you to repay the loan amount in the shortest period of time. That will help you close the loan faster and become debt free.
  • Make sure that the EMI is affordable enough for you to make regular repayments. This allows you to boost your Credit Score.
  • All future expenses and investments must be kept in mind when choosing a loan EMI. Since the Personal Loan repayment tenure can be up to 5 years, you must consider all the possible life changes that may occur in the given tenor. Do not forget to account for all that may affect your finances and the repayment capacity during the period.

Documents Required for Canara Bank Personal Loan

Documents for Salaried Individuals

  • 2 recent passport-sized photographs

  • Salary slips of last 6 months

  • Original latest salary certificate along with details of deduction

  • Last 6 months bank statements of salary account

  • Job proof
  • Age proof
  • Residence proof
  • Photo copy of PAN card

  • Borrower's irrevocable mandate to deduct EMI amount from the salary

  • ECS mandate if applicable

  • Any other document(s) required by the lender

Documents for Self-employed/ Business Class

  • 2 recent passport-sized photographs

  • Age proof
  • Residence proof
  • Photo copy of PAN card
  • Last 3 years' balance sheet and profit & loss account

  • Last 3 years' ITR/ITAO
  • In case you want to involve agricultural income too - ITR and copy of land records.

  • A brief note about the nature of business and its establishment year, form of organization, present banker, and applicant's net worth.

  • Any other document(s) required by the lender

How to Calculate Canara Bank Personal Loan EMI?

Calculating EMI before applying for a loan is important for any borrower because they need to plan their monthly budget accordingly. Keeping this in mind, MyMoneyMantra has formulated an unprecedented EMI calculator tool which can be used to calculate your monthly obligation towards the loan. Also, the tool is super easy to use. Follow the below mentioned steps to calculate your loan EMI:

  1. Visit MyMoneyMantra website.

  2. On the top right corner, you will see a section named "financial tools".

  3. Clicking on this section, a drop down menu will open; from there you can select the EMI calculator tool.

  4. Just fill in the required information like loan amount, duration of the loan and the rate of interest. After filling all the fields, hit calculate.

  5. Within seconds, the EMI calculator will calculate your monthly EMI, the total amount of interest payable on the loan and the total sum of payment, i.e. principal and interest combined.

How do Banks Calculate Loan EMI?

Banks use a standard formula to calculate the EMI of a Personal Loan. This formula is

P*R* (1+R)^N/([(1+R)^N]-1)

In this formula,

  • P signifies the Principal Amount

    With Canara Bank Personal Loans, you can borrow up to 3 Lakh. For Canara Budget, the loan quantum is 6 month's gross salary or 3 Lakh, whichever is lower. In case of Teacher's Loan, the loan quantum is 10 months gross salary or 3 Lakh, whichever is lower.

  • R signifies the Rate of Interest:

    The ROI offered by Canara Bank is not fixed. It is a floating interest rate that is based on 1 year MCLR. The rate of interest offered on Canara Bank Personal Loan ranges from 11.00% to 13.00% p.a. The rate varies according to the employment status of the individual. The current MCLR, w.e.f. 7th May 2019 is 8.50% p.a.

  • N refers to the repayment tenure offered on loan

    With Canara bank Personal Loan, you can get up to 60 months to repay the loan through flexible EMIs.

Now this formula may seem extremely complicated to most people. You can alternatively use Canara Bank Personal Loan EMI calculator. The EMI calculator uses the formula mentioned above to give you the exact EMI payable.

The benefits of Personal Loan EMI calculator can be listed as:

Avoids human error: Calculating EMI manually can lead to errors. Even a small miscalculation can make your budget go overboard and leave you struggling to cope with the repayments. With Personal Loan EMI calculator, you get accurate figures that will help you plan your finances efficiently.

A handy tool: The objective of financial tools like an EMI Calculator is to make EMI calculation easier for the customers. All you have to do is enter details like the loan amount, the rate of interest offered, and the repayment tenure of the loan.

The calculator will use the formula mentioned above to give you all the repayment details. You will be able to get the exact EMI, along with deals of amount that you will be paying towards the interest and the total payment that you have to pay through the tenure of the loan.

What is more, these tools are available to you on the go. You can access through desktop devices, tablets, or your smartphone to check the loan details whenever you need to. You get access to prospective EMI instantly.

Easy to choose a loan plan: With an EMI calculator, you can save a lot of time while calculating EMI for different loan schemes. Since the results are provided instantly, it also makes it easier to shop for a loan when you want to apply for one. You can make your decisions for the loan faster and submit your application there on.

Why Calculate EMI Before Applying For a Personal Loan?

EMI is one of the key factors to consider before signing a Personal Loan agreement. This is a monthly expense that can account for quite a large portion of your income for a given period. Even though the interest rate may seem affordable, it is always a good idea to check the exact EMI amount before applying for a loan to avoid any last-minute surprises.

Here are some reasons why you should calculate the EMI before applying for a Personal Loan:

You can plan your Budget Better: The most important reason for calculating the EMI beforehand is to assess the affordability. An EMI is a sizeable monthly deduction from your income. Therefore, it is always better to calculate the EMI load and check if you will have all the necessary funds in hand for your basic household requirements after paying it each month. It will also help you plan your future financial commitments without any stress.

You will be able to assess eligibility: With Canara Budget Loans, the EMI should not be more than 75% of the gross salary. You must set the EMI as per this debt-to-income ratio. When you calculate your EMI beforehand, you can assess if you can qualify for the loan or not. Basis this assessment, select a loan plan you are most likely to get an approval on.

It is easier to compare the loan plans: When you compare loans from various banks, you will be able to find the exact EMI that is payable. You can also compare other features of the loan offers and choose an EMI that may be slightly higher but comes with added benefits such as a Top Up Loan, in case you may need added funds in future.

You can choose the loan offer and deal accordingly: Several factors determine the EMI that you will pay towards your loan.

A borrower gets the utmost flexibility to choose the Loan plan according to the EMI they can afford. Once you know the EMI load, you can either cut down the loan amount or increase the repayment period or even choose a different scheme with affordable EMI.

You can also choose loan tenure according to the EMI and also base it as per current budget, financial commitments, and any plans that you may have for the future.

Other Products and services by Canara Bank Limited

Apart from Personal Loans, Canara Bank also offers the below-mentioned loan products:

Canara Bank Products and Services

Housing Loan

Home Improvement Loan

Canara Cash (Shares)

Canara Vehicle

Canara Site Loan

Swarna Loan (Gold Loan)

Canara Rent

Canara Mortgage

Housing-Cum-Solar Loan

Canara Jeevan

Canara Home Loan Plus

Housing Loans to Agriculturists

Home Loan For NRIs Scheme

Canara Vehicle to Agriculturists

Yuva Awas Rin-Canyar

Pradhan Mantri Awas Yojana

Canara Pension (Canara Bank Ex-Employees)

Canara Bank Personal Loan Latest News

Canara Banks Provides COVID 19 ? RBI Package for Term Loans

To support the COVID 19-RBI package, Canara Bank offers its borrowers a moratorium/deferment of instalments for Term Loans falling due from 01.03.2020 to 31.05.2020, and extends repayment period accordingly.Read More

Canara Bank is soon going to hire a social media agency for customer outreach.

August 15, 2018, New Delhi: According to sources, Canara Bank is approaching third-party agency for providing support to its customers. So far, Canara Bank provides customer support, marketing as well as retail resources wing itself through manual methods. It will help the bank to enhance the promotional activities. The bank has taken this step to create and manage a strong social media presence and to get itself updated with trending markets affairs as well as the basic requirements of the banks.

Canara Bank calls off a proposal to divest stake in Can Fin Homes (CFHs)

March 31, 2018, New Delhi: The bank announced a proposal to divest its stakes in its own housing finance subsidiary called as Can Fin Homes (CFHs). In an interview with exchanges, the Canara bank has said that the received bids are undervalued and that encourages the bank to cancel the proposal. As per the last survey, the market price of Can Fin Homes (CFHs) is trending at a higher rate. As per the report in January the bank was planning to sell out its entire stake.

Bank Board Bureau invites application for the post of MD, CEO of Canara Bank

September 4, 2018, New Delhi: Banks Board Bureau (BBB) has recently invited applications for the post of Chief Executive Officer (CEO) and Managing Director of the Canara Bank for a period of three years. The post has been vacant after the retirement of ex CEO and Managing Director of Canara Bank Mr. Rakesh Kumar Sharma on 31st July 2018. He has served three years at Canara Bank. In order to find out the best candidates, an advisory firm has been hired by the Bureau to evaluate potential candidates and leadership competencies of the shortlisted candidates.

Canara Bank is about to raise its fund by 1000 Crores through Employee Stock Purchase Scheme (ESPS).

The Board of directors of Canara Bank has decided to raise the funds worth 1,000 Crores with the help of Employee Stock Purchase Scheme (ESPS) by issuing up to 60 Crores equity share to its employees. According to a report, Canara Bank has decided to raise 7,000 Crores in the financial year 2018-19. It is believed that the capital is to be raised through more than one mode subjected to the mandatory approvals from several firms along with the government. In March 2017, the government has allowed the public sector banks to offer stock options to its own employee.

Frequently Asked Questions

Q1. What is the minimum and maximum interest rate of Canara Bank Personal Loan?

The minimum interest rate of Canara bank Personal Loan is 11% whereas the maximum rate is 14%.

Q2. Who is eligible for Canara Bank Personal Loan?

Any self-employed (i.e. professional such as a lawyer, doctor, and so on) and salaried individual can avail Canara Bank Personal Loan.

Q3. What is the tenure of Canara Bank Personal Loan?

The maximum tenure for Canara Bank Personal Loan is 60 months.

Q4. Is insurance mandatory for Canara Bank Personal Loan?

No, there is no such restriction on Personal loan.

Q5. Can the income of my spouse increase the amount of Personal Loan?

Yes, by clubbing your spouse's income, the amount (for which you are eligible) of Personal Loan can be increased.

Q6. Are all the branches of Canara Banks entitled to sanction the Personal Loan?

Yes, you can avail a Personal Loan from any branch of Canara Bank.

Q7. What is the processing charge applicable on Canara Bank Personal Loan?

Canara Bank charges up to 1% of the sanctioned loan amount as the processing fee.

Why Apply for Canara Bank Personal Loan on MyMoneyMantra?

Almost all banks extend Personal Loans at different rates and payback periods. Having a pool of choices can be a bane sometimes. When you have a plenty of choices, then there is a great chance of confusion and ultimately you choose an option which may not be suitable to your needs. This is where MyMoneyMantra is useful and helps you out with selecting the best Personal Loan offer. MyMoneyMantra does the hard work on your behalf and presents the pros and cons of different loan plans on a single screen for you so that you can compare and choose as per your liking.

  1. Eligibility Check: MyMoneyMantra can help you check whether you qualify for a Personal Loan or not on the basis of your eligibility and repayment capacity.

  2. Comparison: You can compare Personal Loan offers of different banks on a single screen and select the most appropriate one.

  3. Online Approval: After filling the loan application form on MyMoneyMantra, your application will be immediately sent for verification and decision.

  4. Hassle Free Documentation: MyMoneyMantra offers free doorstep documentation pickup service which reduces the total loan turnaround time.

  5. Privacy Guaranteed: MyMoneyMantra understands the importance of privacy of personal information. We maintain the confidentiality of your personal information and will never leak that information to any third party.

  6. We have professionals who asses your profile, calculate eligibility, consider your past repayment and loan history and then offer you customized loan packages.

How to Apply for Canara Bank Personal Loan on MyMoneyMantra?

Follow the below-mentioned steps to apply for Canara Bank Personal Loan through MyMoneyMantra:

  • Visit MyMoneyMantra and click on Personal Loan from the drop down menu under Loans.

  • Fill up the online application by entering the details like your name, loan amount that you want to borrow, loan tenure, type of employment which may be salaried/self-employed (business)/ self-employed (professional), city of residence, type of residence which may be rented/owned/corporate provided/relative's house, your date of birth, purpose for which you are taking the loan including education/marriage/medical treatment/personal use/travel/closure of existing loan.

  • Enter your e-mail ID and mobile number

  • Agree to the terms and conditions.

  • Click on "show me the best offers".

As soon as you click on "show me the best offers", a new page will load where you can browse and compare different Personal Loans of different lenders. You can choose Canara Bank Personal Loan if you want to apply for this loan.

Canara Bank Personal Loan Customer Care

For any query regarding you Canara Bank Personal Loan, you can call on bank's following toll free customer care number:


This number is for Indian customers only.

You can also talk to them on Chat through their online Chat bot services.

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