Canara Bank Teachers Loan

Canara Bank Teachers Loan Scheme

This loan helps teachers and non-teaching staff working in schools and colleges get funds for personal needs including wedding expenses, medical expenses, education expenses, travel expenses, purchase of consumer durables, etc. They can also avail this scheme to pay off their high-interest credit card debts and loans to consolidate their debts. This loan cannot be availed for speculative reasons.

Features of Canara Teachers Loan

Why this Loan?

• The Canara Teachers Loan is meant for teachers and non-teaching staff working in schools and colleges who need financial assistance to meet their personal needs
• This loan can also be availed as a consolidation loan to pay off credit card debt and other high-interest loans by the borrower
• This is a collateral-free loan

Loan Amount

• The maximum loan amount sanctioned by the bank under this loan scheme is up to the 10 months’ gross salary of the borrower or Rs. 3 lakh, whichever is less. However, the actual loan amount sanctioned depends on the income of the borrower

Interest

• As of October 2020, the effective rate of interest applicable to this loan lies in the range of 10.90% to 12.95%

Repayment

• This loan must be repaid within 4 years

Eligibility

• Confirmed teaching and non-teaching staff working in a school or college drawing salary through Canara Bank
• The Net Take Home Salary of the borrower after meeting the proposed EMI should be at least 30% of the gross salary or Rs. 10,000, whichever is higher

Security Needed

• This is a collateral-free loan. Co-obligation is mandatory

Margin Money (Borrowers Contribution to Total Cost)

• The bank does not charge a margin on this 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

• The bank charges 1% of the loan amount for processing this loan with a minimum of Rs. 50

Documents Needed

• Loan Application Form duly filled and signed by the applicant
• Two Passport Size Photographs of 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: Latest Salary Certificate and Form 16
• Documents related to co-obligation
• Pro-note or Pro-note covering letter