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Personal loan is an unsecured loan and hence high risk loan. Canara Bank, like all other banks and financial institutions provide an array of personal loans which are multi-purpose loans and serve immediate monetary requirements. This loan requires easy documentation with long tenure. Canara Bank personal loan comes with highly competitive rate and the potential borrower has to pay close attention to the eligibility factors to be able to avail these loans.
The credit score is one of the few most important things that determine whether a person is eligible for personal loan at all, and in case of eligible borrowers, the terms and conditions along with the loan amount is highly influenced by the CIBIL score that indicates the credit rating of the borrower.
CIBIL Score captures the financial behaviour of the person. All the past credit history, handling of credit cards, and payment of loans – all these are tracked and based on those, the CIBIL score is assigned. CIBIL score plays the most important role to determine the eligibility for getting Canara Bank personal loan. Since personal loan is unsecured loan, there is no asset pledged to take the loan. So it is very important to have a good CIBIL score to get a personal loan with reasonable terms and conditions. Canara Bank will check the CIBIL score while processing the loan application. A higher CIBIL score improves the possibility of loan approval. The minimum score that Canara Bank needs is 650 for being eligible for the personal loan. Certain factors affect the credit score, and these are:
Like every other bank, Canara Bank also has its criteria for personal loan rejection. The probable reasons could be:
Hence, personal loan application of this type of candidates has higher chance of rejection
For loan application, all the relevant documents need to be submitted. In case of insufficient documents, application gets rejected. In case of verified documents, if the candidate does not qualify, Canara Bank rejects the personal loan application which gets reflected in the credit score. It is to note that too many rejections have a negative impact on the credit score.
What are the Personal loan rates for Canara Bank?
The rates are 13% to 14% with latest floating rate on 3rd November is 12.75%
What is the Eligibility criteria for getting bank personal loan in Canara Bank?
What if I have a low CIBIL score, will Canara bank still give me a personal loan?
Lower CIBIL score indicates poor or unstable credit history. In such cases the possibility of loan rejection by Canara bank is higher
Does skipping Canara bank personal loan payment affect my CIBIL score?
If a payment is skipped, it creates a negative impact on the credit score.
Had a loan settlement with Canara bank, will it affect my CIBIL score?
Loan settlement means paying off less than the outstanding loan amount and bank will report it as ‘Settled’. It has a very negative impact on the CIBIL score.
Can I get more than 3 Canara bank personal loans if I have a good CIBIL score?
Canara Bank considers a top up second loan with the existing personal loan provided good payment history has been established for the first personal loan. The rate will be similar to the existing one. However, more than two loans is not common as too many loan applications indicate financial insolvency and indicates a risky borrower.
Is it required to be an existing customer to avail personal loan from Canara Bank?
Yes, only existing account holders of Canara bank are allowed to avail a personal loan.
How to get Canara Bank Personal Loan quickly?
Check the eligibility criteria and all the documentation needed. Loan could be approved quickly if the person meets all eligibility requirements satisfactorily