Credit Score
Canara Bank has not specified the cut-off credit score for availing Canara Bank Personal Loans. However, it has specified its personal loan interest rate differentiation based on the credit risk grade. The applicants falling under the lowest credit risk grade are offered personal loans at lower interest rates compared to those falling under higher credit risk grades.
Lenders usually consider applicants having credit scores of 750 and above for availing personal loans at lower interest rates. Thus, having a higher credit score might help the applicants in availing low interest rate personal loan from Canara Bank or other lenders.
Employer’s Profile
Banks and NBFCs usually consider the employer’s profile while evaluating the personal loan applications. Lenders usually offer lower interest rates to salaried applicants as compared to self-employed. Government employees are also offered preferential interest rates as compared to private employees due to their higher job security and income stability.
For example, Canara Bank has set lower interest rates for applicants availing Teachers’ Loan as compared to those availing other Canara Bank personal loan schemes.
Monthly Income
Canara Bank has not mentioned the minimum monthly income required for availing personal loans. However, the bank has mentioned the EMI/NMI ratio to be at least 30% of the gross salary or Rs 10,000 for availing Teachers’ Loan from Canara Bank. Lenders usually offer personal loans to applicants having a minimum monthly income of Rs 15,000.
Existing Relationship with the Lender
Many lenders offer preferential interest rates to applicants having an existing lending/deposit account with them. Therefore, the applicants planning to avail personal loans should prefer contacting the banks and NBFCs with whom they already have a lending or deposit account.
For example, Canara Bank Personal Loan Interest Rates are lower for the applicants having salary account with bank as compared to those not having salary account with the bank.
