Credit Score
Canara Bank has not specified the cut-off credit score for determining Canara Bank Personal Loan eligibility. However, it has mentioned the interest rate differentiation based on the credit risk grade, which may factor in the credit score of the personal loan applicant apart from the other facets of his credit profile. The applicants falling under the lower credit risk grade are offered lower personal loan interest rates as compared to those falling under the higher credit risk grade.
Note that most banks and NBFCs consider the credit score of their personal loan applicants while evaluating their loan eligibility. Applicants having credit scores of 750 and above usually have higher chances of getting their personal loan applications approved. Such applicants may also avail personal loans at lower interest rates.
To improve the credit scores of personal loan applicants having zero or low credit scores and enhance their personal loan eligibility, Paisabazaar offers Step Up Credit Card co-branded with SBM Bank India Ltd. lifetime free secured credit card issued against fixed deposits of SBM Bank.
Repayment Capacity
The role of repayment capacity of personal loan applicants for determining Canara Bank Personal Loan Eligibility has not been disclosed by the bank. Lenders usually consider the applicants having their EMI/NMI ratio within 50%-60% of their total monthly income. Applicants exceeding this limit might not get their personal loan applications approved.
However, applicants exceeding the 50%-60% limit should select longer repayment tenures because longer tenures lead to lower EMIs and thereby improves the repayment capacity of the borrower. Applicants planning to avail Canara Bank Personal Loan can also use Canara Bank Personal Loan EMI Calculator to find the optimum tenure and EMI based on their repayment capacity.
Employment Profile
Canara Bank Personal Loan eligibility depends on the job profile of its personal loan applicants. It offers personal loans to employees of Central and State government, reputed private and public limited companies, assistant professors, lecturers and professors of colleges, research institutes and universities. State/Central Government pensioners, corporate pensioners, pensioners of Public Sector Undertakings and their family pensioners are also eligible for Canara Bank Personal Loans. Canara Bank also offers personal loans to the teaching and non-teaching staff of schools and colleges drawing their salary from Canara Bank and having a net take home pay of at least 30% of their gross salary or Rs 10,000, whichever is higher.
Existing Relationship with the Lender
Canara Bank Personal Loan eligibility is also determined by assessing the existing relationship of the applicant with the lender. Canara Bank offers personal loans to teaching and non-teaching staff of colleges and schools drawing their salary from Canara Bank at lower interest rates. The bank also offers pension loans to only those pensioners and family pensioners who maintain their pension account with Canara Bank.
