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

A simple loan for pensioners to consolidate their loans.

Canara Bank Pension Loan Scheme for Canara Bank Ex-Employees

This loan helps Canara Bank pensioners and family pensioners 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. This loan cannot be availed for speculative purposes.

Features of Canara Pension (Canara Ex-Employees) Loan Scheme

Why this Loan?

  • The Canara Bank (Canara Ex-Employees) Loan Scheme is designed to help retired employees of Canara Bank and family pensioners of retired employees of 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
  • The maximum loan amount sanctioned by the bank under this loan depends on the monthly pension drawn by the borrower

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan is up to 20 times the monthly pension of the borrower or Rs. 10 lakh, whichever is lower

Interest

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

Repayment

  • Pensioner’s Age Below 65 years at the Time of Sanction: The loan must be repaid within 6 years in Equated Monthly Instalments (EMIs)
  • Pensioner’s Age Above 65 years at the Time of Sanction: The loan must be repaid within 5 years in Equated Monthly Instalments (EMIs)

Eligibility

  • Regular and family pensioners of Canara Bank (ex-employees other than dismissed staff or compulsorily retired employees) drawing regular monthly pension through the bank

Security Needed

  • The bank asks regular pensioner applying for this loan to provide co-obligation of the spouse or earning children to secure the loan
  • The bank asks family pensioner applying for this loan to provide co-obligation or a third-party guarantee to secure this loan

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

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a margin of 20% means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

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