Canara Bank Personal Loan Interest Rates
Canara Bank Personal Loan interest rates have varied within 2-3% in the past five years and the recent changes in the repo rate from RBI have resulted in a lowering of the interest rate recently. As of May 2015, the rates for personal loans from Canara Bank range from 10.5-15% and might be applicable for salaried and self-employed individuals. The interest rates are variable for different customers and categories of customers and are at the sole discretion of the bank.
Canara Bank Personal Loan Interest Rates 2018
| Particulars | Salaried |
| Interest rate | One Year MCLR + 4.30% = 13.60% p.a. |
| Loan Amount | Equivalent to gross salary of 6 months or Rs.3 lakh, whichever is lesser |
| Loan Tenure | Up to 60 instalments |
| Lowest EMI | Not available |
| Processing Fee | 0.5% of the loan amount, a minimum of Rs.1,000 and a maximum of Rs.5,000 |
| Age | No limit specified |
| Prepayment Charges | Not available |
| Foreclosure Charges | Not available |
Factors affecting Canara Personal Loan Interest Rates
Canara personal loan interest rates stay the same for any salaried individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as –
- Personal loan amount – Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers. A higher loan amount could cause a lower or higher rate of interest
- Tenure of the personal loan – Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
- Repayment capacity – Canara Bank keeps a tab on the income and consequently the repayment capability of a customer. Depending on amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates
- Income – Income plays an important part in making sure if one is eligible for even applying for the loan. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
- Assets – Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, Canara Bank might provide a preferential rate of interest for personal loans
- Relationship with the bank – An existing customer of Canara Bank is bound to get preference when applying for a personal loan and the bank might consider providing a better rate of interest to the customer
- CIBIL scores – Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank
Key Points regarding Canara Bank Personal Loan Interest Rates
Availing a personal loan from Canara Bank is easy for salaried individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind –
- The interest rates in Canara Bank for personal loan are subject to the repo rate of RBI and may come down further, but not with an immediate effect
- The personal loan interest rates in Canara Bank are floating and not fixed
- Personal loans from Canara Bank don’t require a security or a collateral, addition of such factors may not have any impact on the interest rate
- On approaching Canara Bank for a personal loan, the bank will already have a look at your credit score. Based on the same, the loan amounts might be vary, but there might not be any change in the interest rates
