A Pension Loan Scheme to consolidate your debts from Canara Bank.

A pension loan to consolidate your loans.

Canara Bank Pension (General Public) Loan Scheme

This loan helps pensioners and family pensioners other than Canara Bank ex-employees (and their family pensioners) to get access to funds to meet 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.

Features of Canara Pension (General Public) Loan Scheme

Why this Loan?

  • The Canara Pension (General Public) Loan Scheme is designed to help regular and family pensioners drawing pension from Canara Bank who want to avail financial assistance for personal needs. Borrowers can also avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts
  • Canara Bank ex-employees and family pensioners are not eligible for this loan since Canara Bank has a separate loan scheme for them
  • The maximum loan amount sanctioned by the bank under this loan depends on the monthly pension drawn by the borrower

Loan Amount

  • The bank sanctions maximum of Rs. 10 lakh under this loan to borrowers in all categories viz. general public pensioners, defence pensioners and family pensioners of general public/defence pensioners

Interest

  • As of October 2020, the interest applicable to this loan scheme is 10.20%

Repayment

  • This loan must be repaid within 5 years. However, the repayment period depends on the age of the borrower and it is set in such a way that the loan is repaid before the borrower turns 78 years of age

Eligibility

  • All central government pensioners, state government pensioners, defence pensioners,  pensioners of other government department undertakings and pensioners of public sector units drawing regular monthly pension through the bank are eligible for this loan
  • Family pensioners of the aforementioned categories are also eligible

Security Needed

  • Loan to Pensioners: Co-obligation of the spouse or earning children may be required
  • Loan to Family Pensioners:  Co-obligation of a family member or third-party guarantee is required

Margin Money (Borrowers Contribution to Total Cost)

  • As of October 2020, this information is not mentioned on the bank’s website. It is likely that the bank may not ask for any margin money as there is usually no fixed or specific purpose for which the money is needed, unlike a car loan or a home loan

Processing Charges

  • There are no processing charges for this loan

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
  • 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

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