Description

Canara Bank personal loan interest rates range from 13%-14.15% p.a. The processing fee paid is only 1% of the amount of the loan, up to a limit of Rs.250. This loan has a cumulative  repayment term of 36 months. Canara Bank provides special interest rates at 13 percent p.a. for people with a salary tie-up,14% p.a. without tie-up. And for BSNL Employed at 11 percent p.a. 

 

Particulars

Salaried

Non-salaried

Interest Rate

13% - 14.15% p.a.

Processing Fee

1% of the loan amount (Minimum of Rs.250)

Loan Tenure

Up to 36 months

Loan Amount

Up to Rs.1 lakh

Salary

Rs.6,000 or net salary to be 40% of gross salary

Rs.1.5 lakh

Credit Score

700 and above

Lowest EMI per Lakh

Rs.3,369

Pre-Payment

Nil

 

Consumer Loan from Canara Bank

Canara Bank provides a personal loan called a consumer loan to help them purchase new consumer durable goods such as furniture, utility objects, electronic appliances, and so on. For this form of a loan, salaried, non-salaried, professionals, and businessmen are  eligible. Details of the loan and eligibility requirements are shown in the following table:

Particulars

Interest Rate

Processing Fee

Loan Tenure

Loan Amount

Income

Salaried

13.15% p.a.

1% of the loan amount

Up to 36 months

Maximum Rs.1 lakh

Net salary equal to 40% of gross salary

Professionals/Non-salaried

Rs.1.5 lakh p.a. net income

Factors influencing the interest rates of Canara Personal Loan

Here are the factors that affect a personal loan interest rate:

  • Personal loan amount - The interest rate could be adjusted above the advertised rate for individual customers or groups of customers depending on the amount of personal loan applied for. A higher loan amount can attract lower interest rates.
  • Income - Income plays an important role in ensuring that one is still able to qualify for a loan. Higher income is an indicator of repayment capacity of a borrower. If a lender finds that you have sufficient income to repay the loan without any budgetary problem, it can lower the interest.  
  • Assets – Canara Bank offers preferential interest rates for individuals who submit fixed or movable assets to get a personal loan. 
  • Bank  relationship - Canara Bank's current customer can receive priority when applying for a personal loan. If they share a good relationship with the bank and have a proven track record, the bank may agree to offer lower interest rates. 
  • CIBIL scores – A CIBIL score shows how responsible and reliable customer you are. If your credit score is up to the limit set by Canara Bank, the interest rates applicable will be relatively low. 

Notwithstanding any of the aforementioned considerations, any adjustment in the advertised interest rates is at the sole discretion of the bank.

Main Points on Canara Bank Interest Rates on Personal Loans

  • Canara Bank's interest rates for personal loans are subject to the RBI repo rate and may  change further, but not with immediate effect.
  • Canara Bank's loan interest rates are floating and not fixed.

FAQs

Q1 Concerning the eligibility requirements for the Canara Bank Consumer Loan, are there any conditions?
There are a few requirements that you should bear in mind when obtaining Canara Bank's loan regarding the eligibility criteria: 1. After payment of the loan installment, the net salary of the loan applicant is expected to be 40 percent of the gross salary or Rs.6,000. 2. Non-salaried individuals and professionals are needed to have a net annual revenue of Rs. 1.5 lakh. Income tax returns and the Tax Assessment Order are the evidence needed to be submitted for the same. 3. For salaried people, the salary has to be credited to the bank's account of the applicant. Alternatively, with the boss, the applicant can lodge a mandate so that installments can be easily retrieved. 4. The borrower's spouse's income is also taken into account to determine whether the applicant is eligible for the loan.
Q2Does personal loan need protection?
Under the Consumer Loan, it is required to mortgage the object being purchased.
Q3Do I need a loan guarantor?
A personal guarantee/co-obligation is required by the bank, however, depending on the merits of the case, the higher authority can waive the need for it.
Q4 May I get Canara Bank's new loan when I'm still repaying the first one?
Yeah, you can receive an additional loan from Canara Bank as long as the eligibility conditions, in particular, the income provision, are met and the current loan does not include overdue payments.
Q5How do I know how much I have to pay back during my tenure?
To measure the exact EMI to be paid to the bank, you can use the online Personal Loan EMI calculator on Afinoz. Starting from the month when the loan sum is disbursed, the EMI must be billed.