Canara Bank offers consumer durable loans to salaried employees, self-employed individuals as well as businesspersons. You can use the amount disbursed through this personal loan to purchase home appliances and other electronic gadgets, such as laptops and computers. Read this article to know key details about Canara Bank Consumer Loan such as loan amount, eligibility criteria, interest rates, fees and charges, etc.
Table of Contents
Features of Canara Bank Consumer Loan
- Loan Quantum: The following table summarizes the loan quantum basis the type of applicant.
| Applicant Type | Loan Amount |
| Salaried Individuals | Lowest among the following:
75% of the invoice value of the appliance; 15 months’ net salary; Rs. 1 lakh |
| Non-salaried Individuals and Professionals | Lowest among the following:
75% of the invoice value of the appliance; 50% of the annual net income in the immediate previous year; Rs. 1 lakh. |
- Repayment Tenure: This Canara Bank personal loan can be repaid with a period extending up to 3 years.
- Security required to avail the loan:
- The article purchased using the loan amount can be repossessed by the bank in case of repayment failure.
- The bank may ask for a suitable personal guarantee/ co-obligation.
Canara Bank Consumer Loan Interest Rates
The interest rate on Canara Bank Consumer Loan depends on Repo Rate and starts at 12.40% p.a. In case of this type of unsecured loan, personal loan interest rates may differ based on key factors such as product being purchased, loan amount opted for, repayment tenure, etc.
Eligibility Criteria for Canara Bank Consumer Loan
| Particulars | Description |
| Who can apply? | Salaried Employees
Professionals Businesspersons |
| Minimum Income* | For Salaried: Minimum net monthly salary equal to 40% of gross salary or Rs. 6000 per month after deducting the EMI of the proposed loan.
For Non-salaried: Minimum net annual income of Rs. 1.5 lakh evidenced by Income Tax Return (ITR) or Income Tax Assessment Order (ITAO). |
| Bank Account (For salaried applicants only) | Salary should be credited to a Canara Bank account, or a mandate from the employer should be submitted for easy recovery of EMIs directly from bank account. |
*Income of spouse can also be considered to meet the minimum income requirement.
Documents Required for Loan Application
Following is the list of the documents required to avail Canara Bank Consumer Loan:
- Duly-filled loan application form,
- 2 passport size photographs
- Proof of Income, which can include either your salary certificate and Form 16 or a copy of ITR/ ITAO for the last 3 years,
- Proforma invoice of the item to be purchased.
NOTE: You may also need to arrange for a suitable co-obligant or guarantor acceptable to the bank.
Fees and Other Charges
| Particulars | Charges |
| Prepayment Fees | Nil |
| Processing Fee | 1% of the loan amount subject to a minimum of Rs. 250. |
EMI Calculation
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Personal Loan at Attractive Interest Rates Apply Now
Comparison of Canara Bank Consumer Loan vs Other Lenders
The follow table compares key Canara Bank consumer loan features to similar products from other leading lenders in India:
| Comparison Criteria | Canara Bank | HDFC Bank | IDFC First Bank | Tata Capital |
| Interest Rate | 12.40% p.a. onwards
|
Up to 18% (effectively, no cost EMIs) | Nil | Nil |
| Tenure | Up to 36 months | Up to 36 months | Up to 36 months | Up to 24 months |
| Loan amount | Up to Rs. 1 lakh | Up to Rs. 15 lakh | Up to Rs. 5 lakh | Up to Rs. 5 lakh |
| Processing Fee | Up to 1% of the loan amount | Up to Rs. 749 | Nominal; case by case basis. | Up to Rs. 10,030. |
Canara Bank Customer Care
- 24×7 Toll-free Customer Care Number: 1800-425-0018
- Canara Bank Head Office, Bangalore: 080- 22221581/ 582/ 0490/ 0491/ 1788/ 1789/1790/ 1984/ 1985/ 1986
Important Aspects to Consider While Applying for the Loan
You should keep the following points in mind while applying for the Consumer Loan:
- Eligibility Criteria: Check and ensure you meet all the eligibility criteria before applying for any loan to avoid rejection.
- Documents Required: Submit all required document to the lender along with the duly-filled and signed loan application form.
- Credit Score: It refers to a 3-digit score calculated on the basis of your repayment history. You should always try to maintain a high credit score, because it improves the chances of getting the loan at a better rate of interest.
- Credit Utilization Ratio: This refers to the part of the credit used by you out of the total credit available to you. You should maintain a low credit utilization ratio, preferably below 30%.
- Fixed Income to Obligation Ratio (FOIR): The part of your income constituted by ongoing loan EMIs and credit card dues is called FOIR. The ratio should be maintained at a low, as it is suggestive of your repayment capability.
- Avoid Multiple Loan Applications: You should not submit multiple loan applications at once, as it can show you credit hungry and affect your CIBIL score.
Also Know: What is a CIBIL score, and what factors affect my CIBIL score?
Frequently Asked Questions (FAQs)
Q1. Who can apply for Canara Bank Consumer Loan?
Ans. Salaried employees, self-employed individuals and businesspersons who meet the eligibility criteria can apply for Canara Bank Consumer Loan.
Q2. What is the maximum loan amount available under Canara Bank Consumer Loan Scheme?
Ans. You can avail a maximum of Rs. 1 lakh under Canara Bank Consumer Loan Scheme.
Q3. What is the interest rate on the consumer loan offered by Canara Bank?
Ans. The interest rate on the consumer loan offered by Canara Bank varies between 12.40% and 13.90% p.a.
Q4. How much does Canara Bank charge as processing fee on Consumer Loan?
Ans. Canara Bank charges up to 1% of the loan amount as processing fee on consumer loan with a minimum fee of Rs. 250.
Q5. Can I avail the Consumer Loan from any branch of Canara Bank?
Ans. Yes, all Canara Bank branches are able to sanction consumer loan subject to applicants being eligible to borrow.
Q6. Can I add my spouse’s income to meet the minimum income eligibility criterion for Canara Bank Consumer Loan?
Ans. Yes, your spouse’s income can be considered to meet the minimum income criterion for Canara Bank Consumer Loan.
Q7. Does Canara Bank charge prepayment fee if the consumer loan is paid off before the due date?
Ans. No, Canara Bank does not charge any prepayment fee if you decide to pay off the loan before the designated due date.
Q8. Do I need a guarantor or co-obligation to avail Canara Bank Consumer Loan?
Ans. Yes, you need a guarantor or co-obligation to avail Canara Bank Consumer Loan.
Q9. Can I get a second loan on top of my ongoing consumer loan with Canara Bank?
Ans. Yes, you may get a top-up loan on your ongoing consumer loan with Canara Bank on the basis of your repayment trend.
Q10. What is the toll-free 24×7 customer care number of Canara Bank?
Ans. The toll-free customer care number of Canara Bank is 1800-425- 0018.