Canara Bank Canara Budget Loan

Canara Bank Budget Loan

This loan is meant to meet any personal or domestic needs of the applicant. It provides borrowers with financial assistance to meet their urgent financial needs. Canara Bank offers two sub-categories of the loan:

  1. Canara Budget-Prime and
  2. Canara Budget-Delight.

Most people use personal loans to meet expenses for weddings, travel, medical and healthcare bills, school fees, and so on. However, these loans can also be used to consolidate your debts under a single loan. Borrowers can avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts and reducing their financial losses.

Features of Canara Budget Loan

Why this Loan?

  • The Canara Budget (Personal Loan) is meant for borrowers who need financial assistance to meet urgent personal needs
  • The Canara Budget-Prime loan can be given to:
    • Salaried employees of central and state governments, public sector units and reputed private sector companies
    • Individuals working in defence, paramilitary and autonomous central and state govt. bodies
  • The Canara Budget-Delight loan can be given to:
    • Salaried employees of reputed corporates, MNCs, public and private limited companies
    • Employees of private institutions, universities, reputed schools and colleges, reputed hospitals and IT/BT companies
  • The Canara Budget-Prime loan can be sanctioned based on salary credits if the salary for the last one year was credited in the salary account maintained with the bank
  • This is an unsecured loan and can be taken as an overdraft
  • The bank offers the option to keep the EMI fixed during the entire loan period (for term loan, not overdraft)

Loan Amount

  • The maximum amount offered under Canara Budget-Prime loan scheme (for govt. and public sector employees) is up to 25 months’ gross salary of the borrower subject to a maximum of Rs 30 lakh. The bank may offer a higher loan amount based on a case-to-case basis
  • The maximum amount offered under Canara Budget-Delight loan scheme (for private sector employees) is up to 25 months’ gross salary of the borrower subject to a maximum of Rs 20 lakh. Higher loan amount is considered on a case-to-case basis


  • Canara Budget-Prime:
    • With salary tie-up, the interest rate applicable on this loan ranges from RLLR of 9.25% plus a 1.40% spread to RLLR and a 6.40% spread (the interest rate range comes to 10.65% to 15.65%)
    • Without salary tie-up, the interest rate applicable on this loan ranges from RLLR plus a 2.40% spread to RLLR plus a 6.40% spread (comes to 11.65% to 15.65%)
  • Canara Budget-Delight: For this, the bank needs a salary tie-up and the interest rate is RLLR+2.40% (i.e. 11.65%)


  • This loan must be repaid in EMIs spread over a maximum of 84 months (7 years)
  • If the loan is taken as an overdraft, it can be renewed in 2 years


  • Confirmed employees of Central and State Government, and Public Sector Undertakings,
  • Employees of Autonomous Central Government and State Government Bodies
  • Defence and Paramilitary personnel
  • Employees of Joint Stock Companies, MNCs, Private and Public Limited Companies, and reputed Corporates
  • Lecturers, Assistant Professors, Professors, Teachers and Employees of Universities, Private and State Colleges, Research Institutions, and Schools
  • Employees of reputed Hospitals
  • Employees of reputed IT/BT companies
  • Though the bank does not specifically mention it on their website, it helps if the borrower must maintain a salary account with Canara Bank
  • The minimum Net Take Home Salary should not be less than 25% or Rs 10,000 per month, whichever is higher after meeting the proposed loan instalment

Security Needed

  • Though this is an unsecured loan, Canara Bank prefers co-obligation of the spouse or legal heir, and if the same is not available, then some other suitable co-obligation is preferred

Processing Charges

  • There are no processing fees
  • Earlier, the bank used to charge 0.50% of the loan amount as processing fees, with a minimum of Rs 1,000 and a maximum of Rs 5,000

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Irrevocable Salary Mandate from Employer (wherever applicable)
  • Co-obligation and Pro-note/Pro-note Covering Letter

Contact Number / Customer Care Number for Canara Bank

  • Canara Bank Websites:
    • Canara Bank Main Website:
    • Canara Bank MSME Website:
  • Customer Care
    • Toll-Free Number (within India): 1800 1030
    • From Outside India: +91 80 2206 4232
    • MSME Contact Number: +91 80 2224 0903
  • Email for MSME Loans: [email protected]
  • Headquarters: Bengaluru, Karnataka