Canara Bank Canara Pension for General Public

Canara Bank Pension Loan Scheme for General Public

The Canara Pension Loan Scheme helps pensioners and family pensioners get a loan for their personal needs. While this secured loan can be used to meet expenses for overseas travel, medical exigencies and so on, it can also be used to consolidate high-interest debts by pensioners. This loan cannot be availed for speculative purposes.

Canara Bank also offers a Pension Loan for its Ex-Employees and their Families. You can read more details of this loan by clicking -> Canara Ex-Employees Pension Loan. 

Features of Canara Pension Loan Scheme for the General Public

Why this Loan?

• The Canara Bank Canara Pension Loan Scheme for the General Public is designed for regular and family pensioners drawing pension via Canara Bank who need a loan for personal reasons including medical bills, personal expenses, marriages, or even to pay off high-cost debt
• Canara Bank ex-employees and family pensioners are not eligible for this loan since the bank has a separate loan scheme for them (see highlighted section above)
• The maximum loan amount sanctioned by the bank under this loan depends on the monthly pension drawn by the borrower and their age

Loan Amount

The bank has created an age-based slab system to define the maximum loan eligibility under this Canara Pension Loan Scheme:

Interest

The interest for the Canara Pension Loan Scheme for the General Public is 11.75%

Repayment

This loan must be repaid within 3-7 years as per the above slab system. We break it down for you:

• Borrower Age is Less than 60 Years: 7 years or 84 months is the maximum loan tenure
• Borrower Age is Between 60 – 70 Years: 5 years or 60 months is the maximum loan tenure
• Borrower Age is Between 70 – 75 Years: 3 years or 36 months is the maximum loan tenure

Prepayment

There is no prepayment penalty on this Canara Pension Loan Scheme

Eligibility

The following categories of pensioners and family pensioners who are drawing regular monthly pension via Canara Bank are eligible for this loan. These categories include:

• All Central Government Pensioners and Family Pensioners including Central, Civil, Railways, Defence, Armed Forces, Defence Civilians, Freedom Fighters, etc.
• All State Government Pensioners and Family Pensioners
• Pensioners and Family Pensioners of all Government Department Undertakings
• Pensioners and Family Pensioners of all PSUs (Public Sector Undertakings)
• Corporate Pensioners and Family Pensioners

Loan Security

Security Needed for Loan to Pensioners

Co-obligation of the spouse or earning children or any other person/pensioner for an amount stipulated by the sanctioning authority may be required.

Security Needed for Loan to Family Pensioners

Co-obligation of a family member or third-party guarantee is required to avail the Canara Bank Pension Scheme.

Margin Money (Borrowers Contribution to Total Cost)

The bank does not charge any margin money for its Canara Bank Canara Pension Loan Scheme.

Processing Charges

There are no processing charges for this Canara Pension Loan Scheme.

Documents Needed

• Loan Application Form duly filled and signed by the applicant and co-applicant, if any
• Two Passport Size Photographs of the applicant and co-applicant
• PAN Card or PAN Card Issuing Letter (Mandatory)
• Personal ID Proof (Any One):
  • Aadhaar Card
  • Passport
  • Driving License
• Residential Address Proof (Any One):
  • Aadhaar Card
  • Driving License
  • Electricity Bill
  • Post-paid Phone Bill
  • Valid Rent Agreement
• Signature Proof (Any One):
  • PAN Card
  • Banker’s Verification
  • Driving License
  • Passport
• Documents related to the Canara Bank Pension account
• Letters should be addressed to the Pension Disbursing Authority and the particulars of the loans granted should be noted invariably in the Pension Register/PPO maintained with the pensioner and SB master