What A Personal Loan Costs You

Personal loan -

A personal due to its high reliability and minimal processing time makes acquaintance easy for the borrower. The one who borrows is in need which makes him/her prone to opt for a loan. At such times, Personal loans can come to aid.

The personal loans can be used in cases of -

• Medical emergencies due to health issues or accidents
• Home renovation or construction
• Higher education purpose
• Debt consolidation purpose 
• Travel purpose
• Wedding purpose

There is no restriction on the utilization of the Canara Bank Personal loan amount.

Eligibility for a personal loan -

1. The applicant must be between 21-75 years of age which differs as per the employability.
2. The salaried applicant age should be between 21-58 years of age, while for self-employed, it has to be 21-65 years. 
3. A CIBIL Score of above 700 is mandatory.
4. An income proof has to be submitted along with KYC Documents. 
5. A person with a low credit score has high chances of a loan getting rejected.

Documentation -

Documentation is done for a background check. KYC documents, along with two passport size photographs, have to be submitted for verification. An address proof, Identity proof and Income proof have to be submitted. 

The following are the enlisted documents among which you can submit one - 

1. Identity proof :
   Aadhar card, Driving license, Voter ID, PAN Card can be submitted.
   
   
2. Address proof :
   Aadhar card, Utility bills, ration card, Passport, Rent agreement of at least one year.
   
   
3. Income proof :
   ITR, Bank statements of 3 months, Salary slips of last 6 months.

Application in personal loans An application can be made through Offline or Online modes from the official website of Canara Bank. After application, the documentation process is done to submit the required KYC documents for verification and income proof. An Income is necessary for loan approval. A loan for Rs.10 lakhs or more can be granted. Loan tenure of up to 5 years is given to the borrower or applicant. The advantage of a personal loan is less paperwork and documentation involved in the application.

The approval rate is faster compared to other types of loans and pre-approval offers are also available. Several Prepayment options are also given by banks ranging from 13 to 36 months, and no fee is charged upon them. 4% of the Principal Amount is charged for the repayment period between 13-24months. 3% of the principal amount is charged on 25-26 months prepayment options. An exceeding 36 months for prepayment are charged with only 2% of the principal loan amount. A GST is applicable over the specific prepayment options you choose. 

It can take a time of almost 15 days to get this loan approved, but it can take less time for a loan to be approved for Canara Bank customers. An Approval letter is given to the borrower from the bank. The letter contains information about the lending bank, personal loan scheme, Personal Loan Interest Rate, Repayment options, processing fee, total loan amount, Tenure, repayment options etc. The borrower can check eligibility using an eligibility calculator. The Interest rates for personal loans are only 9.99%. A 1% of the loan amount is charged as a processing fee. However, Rs. 2135 is the lowest EMI per lakh to be repaid. 

Personal loan Repayment options -

There are several loan repayment options provided in personal loan by the bank, which are -

• Post Dated Cheques :
  A check of future date is deposited in the bank.
   
• Electronic Clearance System : 
  An amount transfer from digital platforms is done.
  
  
• National Automated Clearing House : 
  NACH offered by NPCI can be used as a model for real-time transactions in debt consolidation.
  
  
• Standing instruction : 
  An instruction given to the bank to make payments from a bank account of the borrower's indicated amount.

       Also Read:- Alternatives For Repaying Personal Loan For Defaulters