|Interest Rate||13.00% to 14.00%|
|Loan Tenure||12 months to 48 months|
|Loan Amount||Rs. 1 Lakh to Rs. 3 Lakhs|
|Part Prepayment Charges||You can do it after payment of the 1 EMI|
You can do it after payment of the 1 EMI
Canara Bank Personal Loan Interest Rate starts at 13%. The lowest EMI for Rs. 1 lakh is Rs. 2,683 for 48 months tenure. You can take the loan if you are a salaried or self-employed professional. You can borrow between Rs. 1 lakh and Rs. 3 lakhs. The tenure is 12 months to 48 months. You need to have a good credit score and meet eligibility criteria set by the bank to get approval for the loan. Some of the charges apart from the rate of interest are processing fees, preclosure charges, and part prepayment charges.
In this post we will discuss about interest rate Canara Bank personal loan features, other charges, factors that influence rate of interest, total cost of the loan, interest calculation, EMI calculation, and frequently asked questions.
Here are some of the features:
Apart from the rate of interest, you need to understand about the other applicable charges that account for the total loan cost. Here are some of the charges applicable on the loan:
The bank assesses your loan amount, financial liabilities, monthly income, employment details, and other factors to decide an interest rate. Here are few factors that impact the loan rate of interest:
|Annual Percentage Rate (APR)||13.00% to 14.00%|
|Total cost of the loan with all the fees||
Here is an example:
Here is an illustration for interest amount calculation. The borrowing amount is Rs. 1 lakh and 13% is the rate. Now here is how the interest amount you have to bear for different tenures:
|Canara Bank Personal Loan Interest Calculation||2 years||4 years||3 years|
|Borrow Rs. 1 lakh at 13%||Rs. 4,754||Rs. 2,683||Rs. 3,369|
|Principal + Interest: Total Outgo||Rs. 1.14 Lakh||Rs. 1.29 Lakh||Rs. 1.21 Lakh|
EMI is equated monthly instalment. It is a fixed amount that is for repayment of the loan. You need to pay the EMI on a fixed date every month till end of the tenure. It consists of both principal and interest component. With payment of every monthly instalment, the proportion of principal amount increased and interest component keeps reducing. However, the EMI amount remains the same.
The monthly instalment for a loan depends on the loan amount, interest rate, tenure, employment details, and monthly salary apart from other factors. The lowest Canara Bank Personal Loan Interest Rate is 13%. So, for Rs. 1 lakh borrowing for 48 months, the lowest instalment amount for a month is Rs. 2,683.
|Loan Amount||1 Year Tenure||4 Years Tenure||3 YearsTenure|
|Rs. 1 Lakh||Rs. 8,932||Rs. 2,683||Rs. 3,369|
|Rs. 5 Lakhs||Rs. 44,659||Rs. 13,414||Rs. 13,414|
|Rs. 10 Lakhs||Rs. 89,317||Rs. 26,828||Rs. 33,694|
At 13% rate and different loan amounts and tenures, here is an illustration of Canara Bank personal loan EMI:
|Loan Amount||2 Year Tenure||4 Years Tenure||3 YearsTenure|
|Rs. 1 Lakh||Rs. 4,754||Rs. 2,683||Rs. 3,369|
|Rs. 3 Lakhs||Rs. 14,263||Rs. 8,048||Rs. 10,108|
|Rs. 5 Lakhs||Rs. 23,771||Rs. 13,414||Rs. 16,847|
|Rs. 10 Lakhs||Rs. 47,542||Rs. 26,828||Rs. 33,694|
Here are the Canara Bank Personal Loan Interest Rate FAQs:
The lowest and the highest interest rate for Canara Bank personal loan is 13% and 14%, respectively. The loan amount is between Rs. 1 lakh and Rs. 3 lakhs. The tenure is between 12 months and 48 months. The interest amount depends on tenure and loan amount. The lower the principal borrowed and shorter tenure, lower is the total interest payout, and vice-versa. So, you must choose the loan amount and tenure wisely to save the most on the total cost.
Credit score or CIBIL score is indication of your repayment capacity. Your CIBIL report shows all the repayment history such as your loan EMIs (ongoing, past, default, etc), credit card bill payments, and more. The higher the CIBIL score and nearer to 900, better the chances of getting a loan approval, and vice-versa. The minimum CIBIL score to get Canara Bank personal loan and best rate of interest is 750+. The higher the credit score over 750+, greater are the chances of getting the bank loan.
The processing fee applicable on personal loan by Canara Bank up to 0.50% of the loan amount. The fee is only counted on the principal borrowed and not the interest amount. You will also have to bear the additional taxes. Apart from other charges and interest rate, processing fee too is counted in the total cost of the loan. Lower the processing fee (considering other charges too), lower will be the cost of the loan, and vice-versa.
Consider that you have taken a loan of Rs. 1 lakh for 48 months at 13%. In this case the EMI amount (lowest) will be 2,683. For Rs. 1 lakh for 48 months at 14%, the highest EMI amount will be Rs. 8,979. The EMI amount will differ based on the loan amount, rate of interest, and tenure. You must calculate the EMI amount. For this, consider the rate and loan amount with tenure so that you can decide on the most affordable loan option and offer.
To get the lowest personal loan interest rate, you must have a good credit score and repayment capacity. You must have good amount of disposable income every month so as to afford the EMIs regularly. You should have a stable job and monthly salary. Higher the salary, better the chances of getting a low rate of interest. You can even negotiate for the rate, tenure, loan amount, and offer if you have a high income.