Thinking of a Personal Loan to Consolidate your Debts?

Take a look at Canara Bank Budget Loan Scheme.

Canara Bank Budget Loan

This loan helps borrowers get financial assistance to meet their urgent financial needs. Most people use personal loans to meet urgent expenses such as wedding expenses, travel expenses, medical expenses and so on, however, it can also be used to consolidate debts. Borrowers can avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts.

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
  • This loan is specifically designed for salaried employees of public sector units and reputed private sector companies who are maintaining salary account with the bank
  • This is an unsecured loan

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to 6 months’ gross salary of the borrower subject to a maximum of Rs. 3 lakh. The bank may offer a higher loan amount based on a case-to-case basis

Interest

  • As of October 2020, the interest rate applicable to this loan ranges from 11.25% to 13.30%

Repayment

  • This loan must be repaid within 5 years in EMIs

Eligibility

  • Confirmed employees of Public Sector Undertakings, Central Government, State Government and Joint Stock Companies
  • Lecturers, Assistant Professors and Professors of Colleges, Research Institutions and universities
  • Employees of reputed IT/BT companies
  • 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

  • This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan

Processing Charges

  • The bank charges 0.50% of the loan amount for this loan, with a minimum of Rs. 1,000 and up to 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
  • Co-obligation and Pro-note/Pro-note Covering Letter

Reference Facts

  • Canara Bank Website: www.canarabank.com and www.canarabank.in (net banking)
  • Headquarters: Bengaluru, Karnataka
  • Call Centre Toll-Free Number: 1800 425 0018