Canara Bank Personal Loan Eligibility

Detailed Eligibility Criteria of Canara Bank Personal Loan

The eligibility criteria set by Canara Bank for its personal loan offerings can vary as per the category of personal loan applied for. Here, we have listed some of the common eligibility criteria as per the personal loan category:

1. Canara Budget - Applicants must show their employment status with a reputed PSU (Public Sector Unit)/joint-stock company, Central/State Government, Lecturer / Asst. Professor / Professors of College / Research Institutions and Universities, Reputed Corporate/Public Limited Company/Private Institution or IT / BT Company.

2. Canara Pension – Here is the list of pensioners who are eligible for this loan:

• State Government Pensioners
• Central Government Pensioners (viz., Central, Civil, Railways, Defence, Armed Forces, Defence Civilians and Freedom Fighters etc.)
• Pensioners of all Government Department Undertakings
• Pensioners of all Public Sector Undertakings/Corporate Pensioners
• Family Pensioners of all the above segments
• Retired Canara Bank staff pensioners and family pensioners of retired Canara Bank staff are eligible for this loan

3. Canara Teachers Loan

• Applicant should be a part of the teaching/non-teaching staff at a school/college

• Applicant must be drawing salary through Canara Bank
• Bank will need an undertaking letter from salary providing authority at District/Block level to not shift the salary account without getting a NOC from the branch
• Individual applicants should show documentary evidence of a take-home salary of at least 30% of the gross salary after considering the proposed EMI or Rs. 10,000 (whichever is higher)

4. Canara Home Improvement Loan - 

• Applicant must be a salaried individual/ self-employed / individual engaged in business / professional / NRI owning a flat or house
• Salaried individuals with a minimum monthly net take-home salary of 25% of the total gross salary of Rs. 2000/- after considering the loan instalments for the proposed loan are eligible to apply

Professionals and other non-salaried individuals must have a minimum yearly income of Rs. 50,000/- to be proven by furnishing Income Tax assessment order/return

Overview of Canara Bank Personal Loans

A growing number of individuals today are seen to be applying for Personal Loans for meeting their expenses and financial needs. One of the main reasons for this sudden rise in the growing preference for Personal Loans is that these are unsecured loan and therefore do not require any collateral. These loans also have a very quick processing time. One can easily avail of a personal loan from reputed banks such as Canara Bank. With the availability of online services offered by most banks, an applicant can get the money within as little as 48 hours.

A personal loan is a form of unsecured credit that is offered by financial institutions depending on certain criteria such as, employment history, repayment capability, income, the profession of individual and credit history. A personal loan is also known as a consumer loan and can be used to meet and the individual’s immediate financial needs.

Here are some of the key details to know about Canara bank personal loan:

Features of Canara Bank Personal Loan

Loan amount: The personal loan amount offered by Canara Bank is a maximum of Rs. 10 lakhs. This can help loan seekers to fulfil various personal needs.

Flexible tenure: The loan tenure differs depending upon the type of personal loan scheme chosen and the maximum loan tenure offered is of 84 months.

Multiple options: Canara Bank offers various loans which are designed to meet different individual requirements. Some of the personal loan schemes are Canara Budget, Canara Pension, Canara Home Improvement and Teachers Loan.

Online application: Canara Bank personal loan is available for application online. This ensures limited documentation and immediate disbursal of the loan amount.

Documentation Requirements for Canara Bank Personal Loan

Similar to eligibility criteria, the documentation requirements for applying to various Canara Bank personal loans may also differ depending on the loan applied for. Some common documentation requirements that are required for each category are as mentioned below:

Identity proof: Passport, PAN, Voter Identity Card, Driving License, Aadhaar Card

Address proof: Ration Card, Bank Account Statement, Passport, Driving License, Electricity Bill, Telephone Bill, Sale Deed/Property purchase agreement (for owned properties), Aadhaar Card

Income proof: Bank Account Statement, Salary Slips, Form 16, ITR

Verification Process for Canara Bank Personal Loan

Here are the steps followed in the verification process of Canara bank’s personal loan application:

• After you submit the personal loan application to the bank, a representative will reach out for verification and will schedule a document pickup appointment.
• Post submission of all the necessary documents, the bank carries out verification of the same.
• Post verification, the bank will reach out to confirmation on the final offer including the loan amount, interest rate and tenure.
• After the applicant agrees to the loan terms and signs the loan agreement, the amount is disbursed to his/her account.

Personal Loan Eligibility Through Income and FOIR

Here is how your Canara bank personal loan eligibility can be measured using Income and FOIR:

• Net Income: You must have a net income of Rs. 15,000 per month to avail Canara bank’s personal loan. Your eligibility is calculated with the help of your income (Net take-home salary). Your ability to repay the loan is gauged based on the income earned as your loan EMI’s should not be affecting your living standards.
• FOIR: FOIR (Fixed Obligation to Income Ratio) is one of the main parameters used by Canara Bank to find out the personal loan eligibility of an individual applicant. Canara Bank considers all your fixed obligations (such as rent or current EMIs) while estimating your loan eligibility. The minimum FOIR requirement for a personal loan from Canara Bank is 0.45.
• Co-applicant: The addition of a co-applicant can help in improving your eligibility for a Canara bank personal loan since it increases your repayment capability. Make sure to add a co-borrower with a good income flow, minimal fixed obligations and a good credit score.

Factors Affecting Canara Bank Personal Loan Eligibility

Employment Type: An applicant is eligible for a Canara Bank personal loan depending on his/her type of employment and the company or institution he/she works for.

Income: To be eligible for a Canara Bank personal loan, the applicant has to meet the minimum income requirement of the personal loan scheme. If not, the application will be rejected.

Relationship with the bank: If the applicant has an existing relationship with Canara Bank by way of a salary account or is an employee of the bank, he/she has higher chances of the loan being approved.

Loan amount: The applicant must have the financial ability to repay the loan amount that he/she wants to avail. If the applicant does not have a sufficiently high income, he/she must opt for a reasonably lower loan amount for being eligible for the scheme.

Repayment status of previous loans: In case an applicant has not cleared his/her previous loan dues and thereby has a poor credit score then the eligibility will be affected and the application could also be rejected.

Important Aspects to Remember

Here are some of the important aspects to remember before applying for a Canara bank personal loan:

Credit score: It reflects your ability to handle credit and your credit history. Credit score plays a crucial role during the evaluation of your personal loan application. Thus, it is essential to have a good credit score before applying for a personal loan else there are higher chances of your loan application being rejected.

Repayment ability: You should avoid borrowing beyond your repayment capacity. Try an evaluate your repayment capacity by using a personal loan EMI calculator that is easily available online. Opt for a loan amount, interest rate and loan tenure that fits your requirement.

Fees and charges: There are multiple fees and charges involved in a personal loan other than the interest rate. Some of these include processing fees, late payment fees, foreclosure fees, part prepayment charges, etc. It is important that you know such charges before applying for a personal loan and thereby, avoid any unpleasant experiences in the future.

Consider multiple options: Comparing interest rates and various other loan features from various lenders helps you to opt for a personal loan that exactly suits your specific requirements.

FAQs – Personal Loan Eligibility – Canara Bank