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Canara Bank Personal Loan Pre-closure Charges

Canara Bank Personal Loan borrowers can pre-close their personal loans as per their repayment capacity. Since Canara Bank offers personal loans at floating interest rates, no pre-closure charges are levied on Canara Bank Personal Loan borrowers.
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Benefits of Pre-closing Personal Loan

Savings on Interest Cost

Personal loan borrowers can easily save the interest cost by prepaying the outstanding loan amount. For example, if an individual borrows a personal loan of Rs 10 lakh at 13% p.a. for tenures of up to 5 years, the EMI would be Rs 22,753 and the total interest cost would be Rs 3.65 lakh. If the borrower prepays the outstanding loan amount after a year, the savings on interest cost would be up to Rs 2.44 lakh.

Lower Proportion of Unsecured Loan Credit Mix

Credit mix is the ratio of secured and unsecured loans. Canara Bank Personal Loans are unsecured loans. Hence, personal loan pre-closure would reduce the proportion of unsecured loans in credit mix. Increased proportion of secured loan improves the credit score of the borrowers and increases their chances of getting loans in future.

Increased eligibility for additional loans

Loan applicants whose EMI/NMI ratio (including existing EMIs and EMIs of the proposed personal loan) is within 50-60% have higher chances of getting their loan applications approved. Lenders do not usually consider the applicants exceeding this limit. Thus, applicants considering to avail additional loan facility can reduce their EMI/NMI ratio by making prepaying their existing loans thereby improving their eligibility for personal loans, home loans, etc.

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Disadvantages of Pre-closing Personal Loan

Negative Impact on Liquidity

Many borrowers use their existing investments for making prepayments. Some also end up using their emergency funds to prepay their personal loan. While using emergency fund to prepay personal loans would reduce their ability to deal with emergency situations like medical emergencies, loss of income due to job loss or illness or other financial exigencies etc., using existing investments to make prepayments might adversely impact the achievement of their crucial financial goals. Thus, using emergency fund or existing fund to prepay personal loans might force one to avail loans at higher interest rates to deal with financial exigencies or achieve his crucial financial goals. Therefore, personal loan borrowers should prepay their personal loans only if they have adequate emergency fund. They should also avoid prepayment by redeeming their existing investments earmarked for crucial financial goals.

Instead, borrowers wishing to reduce their repayment burden and interest cost can opt for personal loan balance transfer facility wherein they can transfer their existing personal loans to other lenders offering lower personal loan rate of interest.

Pre-closure Charges

As Canara Bank offers personal loans at floating interest rate, it cannot charge any pre-closure fees from its personal loan borrowers. However, in case of personal loans availed at fixed interest rates, lenders are free to charge prepayment or foreclosure charges. In such cases, prepaying personal loans would reduce the overall savings in interest cost. Hence, the borrowers should opt for prepayment only if their net savings in interest cost is significant enough after accounting the pre-closure charges.

How Can I Apply for a Personal Loan Online?

Get up to 40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Apply Now

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What our customers say

Smooth & hassle-free loan approval experience

I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

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Sanjay Kumar GuptaMar 30, 2026

Exceptional guidance throughout the process

I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

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Jyotirmoy SinghaMar 23, 2026

Very helpful and easy to reach

I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

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DharmeshFeb 22, 2026

Committed support that made everything easy

I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

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My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

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Lalit MaviFeb 12, 2026

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I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

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Kokil BarnwalFeb 12, 2026

Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

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Riyaj AtarFeb 9, 2026

Apne higher education ke liye loan liya tha

Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

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Puja DanuJan 22, 2026

Sabse jada helpful log the yaha

Maine bht jagah try kiya tha personal loan ka, yaha try kiya toh helpful log mille. Har steps mai aram se samjhaya or usse muhje loan lene mai jda dikkat nhi aayi.

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Anuradha GuptaJan 21, 2026
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