Canara Bank Personal Loan Interest Rates

The interest rates personal loans at Canara Bank are seen to have changed from 2- 3% in the past five years. The current fluctuations in the repo rates declared by RBI have resulted in decreased interest rates. The rates presently applicable range between 10.5 – 15% in case of loans taken by salaried people or self-employed individuals. However, for other customers not falling under the two categories, the interest rates vary depending on the criteria of the bank.

Canara Bank Interest rates on Personal loans – 2017

A loan equivalent to your gross salary of 6 months or Rs. 3 lakhs, whichever is less, can be availed. The interest rate applicable is 13.6 % p.a. (One-year MCLR + 4.3 %) The tenure of the loan can be extended up to 60 instalments. However, no lowest EMI option is available. The processing fee applicable is 0.5% of the total loan amount, the minimum being Rs 1000 and maximum Rs 5000. There is no age criteria, foreclosure charges and no prepayment charges applicable on these loans.

Personal loan interest rates – key points

• The interest rates on personal loan are applicable based on the repo rate fixed by RBI.
• In interest rates are floating charges and not fixed.
• The personal loans do not demand any collateral or security. They will bring no impact on the rate of interest.
• Based on the credit score, the loan amount varies. However, there will be no change in the interest rate.

Factors affecting the interest rates applicable on personal loans

• Loan amount – the interest rate may be higher for certain customers and lesser for other categories for the same loan amount. The Higher amount of loan can bring down the interest rates.
• Loan tenure – a longer tenure of repayment can result in a higher interest rate.
• Repayment capacity – the bank keeps an eye on the customer's repayment capacity. Depending on the inflow of funds, the bank may provide loans on lenient rates of interest.
• Income – this is a crucial part considered to sanction the loan and charge interests. Favourable rates may be applied to individuals with steady income every month.
• Assets – the bank looks at the fixed as well as current assets of the applicant to get a financial picture of the person. Interest rates vary based on what assets customer possesses.
• Relationship with the bank – if the client has a good old steady relationship with the bank, he shall get the preference of the loan. He is also inclined to get the loan at a lesser rate of interest.
• CIBIL score - the bank may also check one’s credit history. A favourable CIBIL score can get him loans at lesser interest rates.