All the leading banks and NBFC’s are providing personal loan. Over the past few years personal loans are the most sought after product. People finding it difficult to arrange for funds during the need can look out for personal loans.

Down payment of home loans is one such necessity which usually borrowers face while purchasing the their dream home. It becomes difficult for the seller to hold on the property for long, while the borrower struggles to arrange for the down payment of funds. If amount doesn’t not get deposited on time, the property might get sold out. Personal loan is the best option to get the amount on a short notice.

People with good credit finds it easy to get through it. At max 90% of the amount gets sanctioned. And the rest amount needs to be arranged by the borrower. Personal loans are a good option in such scenario. 

Points to consider while choosing  Personal Loan as down payment


  • Festivals and monsoons are a good time of the year when banks come up with attractive offers and deals on loans. Get hold of the situation and try to grab the ones which suits you best.



  • Do not go fall for the first offer which comes your way. You should always survey thoroughly, before saying yes to any kind of offers. Based on your eligibility lenders might offer you great deals.
  • Keeping the tenure short will be useful to the borrower. Longer the tenure, higher is the compound interest.
  • Look at your CIBIL score before applying for the loan. In case of any discrepancy it is important to resolve it before hand.
  • Various other additional costs involved like processing fee, prepayment and late payment charges which is being levied upon for availing personal loan. While calculating the fees, do not miss out on these charges. 
  • Check out thoroughly before proceeding. Certain guidelines have been levied upon borrowers, for sourcing of the down payment. 
  • With so many apps available for instant personal loans that offer personal loan online, one can have a thorough look at all of them to avail it at attractive rate of interest and better features. 
  • Before finalizing the document, give a thorough reading to the terms and conditions mentioned in the loan agreement document. There are possibility to come across few points and charges which the lender do not discloses to the borrower directly.


Canara Bank offers Personal Loans to handle such situations in life. The funds available with Personal Loans are not limited to any specific usage and hence can be utilized for purposes like medical emergencies, travel trips, planning a wedding, consolidating various debts into one, arranging for a home loan or car loan down payment, etc. It has flexible repayment tenure ensuring pocket-friendly EMIs, which do not put a burden on your day to day lifestyle.

Canara Bank is one of the oldest banks that was established in 1906. Having a wide network of 5,784 branches and more than 9,153 ATMs spread across India, it aims to serve its customer in the most efficient way. 

Canara Bank Personal Loan Interest Rates

Various factors which influence interest rates of personal loan are credit score, employer of the applicant, the income of the applicant, age, debt to income ratio etc.

Loan AmountSix months gross salary subject to max offer Rs3 lac.
Interest rate12.55% – 14.60%
RepaymentEquated instalments up to 60 months
Processing fee 0.5% of the loan amount

Factors affecting Canara Bank Personal Loan EMI

Employment Type – Organisation an applicant works for affects the loan EMI to a greater extent.

Individual’s income –  An applicant will have to meet the minimum eligibility criteria of income to avail the loan.

Individual’s relationship with the bank –Canara Bank account holders gets the advantage of quick loan approval and even chances are of getting at lower interest rates.

Interest Rate – The lowest interest rate offered by the Canara Bank is 12.55%-14.60%.  Salary account holders of Canara Bank can avail a lower interest rates than their quote rates. 

Loan Amount –Canara Bank offers a minimum loan of Rs 1 lakh which can go up to Rs 3 lakh. 

Loan Tenure – Canara Bank offers the loan for a maximum tenure of 4 years. Lowering of personal loan EMI is dependent on longer tenure.

Formula for Personal Loan EMI Calculation –Canara Bank 

The formula for calculating personal loan adopted by Canara Bank is P*r* (1+r)^n/([(1+r)^n]-1)

This is how Canara Bank Personal Loan EMI is calculated:

n = Tenure in month

r = Per month rate of interest

P= Loan Amount

Eligibility Criteria- Canara Bank Personal Loan

Canara Bank runs various schemes under different head of Personal Loans

  • Canara Budget Loan – Canara Bank account holders who is a salaried employee drawing a salary of minimum of Rs 10,000 per month are eligible for this loan. 
  • Consumer Loan – A minimum of Rs 1 lakh or 15 months gross salary or 75% of the consumable item, whichever is lesser. Borrowers drawing a salary of Rs 6,000 who can manage the repayment of loan maximum of 40% of their take home salary are eligible to apply for the loan.
  • Canara Bank Teachers Loan– The applicant should be a teacher in a reputed institution and should not earn less than Rs 10,000 per month. Bank offers a loan amount of Rs 3 lakh or 10 month’s gross salary-whichever is lesser. 
  • Pension loan – A loan amount of Rs 5 lakh or 20 months pension-whichever is lesser is offered by the bank. Ex-employee and a Canara Bank pensioner are eligible to apply for this loan.
  • Canara Pension General Public personal loan scheme – If the individual is more than 65 years old the loan tenure allowed by bank is maximum of 60 months. For individuals who are less than 65 years of age, loan is offered for a maximum tenure of 72 months. a pensioner of the State or Central Government or family of the pensioner who was an ex-employee in the state or Central Government are eligible for this scheme.

Documents required for Canara Consumer Loan

  • Past 3 years ITR/ITAO/Form 16 and latest salary certificate
  • 2 passport size photographs along with loan application
  • Invoice of the article that is proposed to be purchased

Documents required for Canara Teachers Loan

  • Pronote Covering Letter
  • Co-obligation where it will be applicable
  • Form 16 or latest salary certificate
  • 2 Passport size photograph along with complete application form

Document Required for Canara Budget Loan


  • Form 16/ ITR/ ITAO for past 3 years or latest salary certificate
  • 2 passport size photograph, with complete loan application.
  • Co-obligation


Document required for Canara Pension General Public

  • Unless waived, co-obligation is required
  • 2 passport size photograph with loan application
  • Delivery letter to DPN

Documents required for Canara Bank Pension- Canara Bank Ex-employees

  • Delivery letter to DPN
  • Unless waived, co-obligation is required
  • 2 passport size photographs along with loan application

Canara Bank Personal Loan are available now also with Fintech firms from where an individual can apply with. The process is faster and convenient for applicants.