FREQUENTLY ASKED QUESTIONS ON CANARA CONSUMER LOAN
Sl. QUESTIONS
No
.
1 Who can avail a loan under the
above scheme?
2 What items can be purchased
from out of loan proceeds?
3 What is the income criteria?
4 Whether all branches are
empowered to sanction loan
under above scheme?
5 Can the income of spouse be
reckoned to determine eligibility?
6 What are the documents required
to be submitted
ANSWERS
All individuals, including
professionals, businessmen and
salaried class
Any durable utility article can be
purchased
For salaried class –
Net take home salary of 40% of
gross salary after meeting proposed
loan instalment or Rs.6000/- ,
whichever is higher.
Note: Salary to be credited to
operative account of applicant.
Alternatively, a mandate to be
lodged with employer to facilitate
easy recovery of instalments.
For non-salaried class -
Professionals and other non-salaried
persons should have a minimum
annual net income of Rs.150000/-
(after tax) as evidenced by Income
Tax Assessment Order (ITAO) /
Income Tax Return
Yes; This loan can be availed from
any of our branches
Yes; income of the spouse is
permitted to be reckoned for
determining eligible loan quantum
and also for complying with Net
Take Home Salary stipulation.
Prescribed Loan Application with 2
copies of passport size photographs
of borrower / co-obligant /
guarantor
Latest Salary Certificate and Form
 No.16 / ITR/ITAO for last 3 years.

Proforma Invoice of the article

proposed to be purchased

Suitable Co-obligant / guarantor

acceptable to the Bank to be
offered

7. What is the quantum of loan? For salaried class –

75% of invoice value or 15 months
of net salary or Rs.1,00,000/-,
whichever is less.
For non-salaried class –
75% of the invoice value or to the
extent of 50% of their annual net
income in the immediate previous
year or Rs.1,00,000/-whichever is
less.
8 What is the type of interest and Floating rate of interest.
rate of interest? 4% above Base Rate.
9 What are the repayment terms? Repayment allowed upto 36 months
by way of equated monthly
instalments which shall commence
from the month following the month
of disbursement
10 Is there any pre-payment No pre-payment charges are levied
charges?
11 What is the security for the loan? Hypothecation of the asset created
. out of Bank Finance.
12 Is there a need for furnishing Yes; a person known to Bank and
. guarantee or co-obligation? good for the amount has to furnish
guarantee / sign as co-obligant.
13 Can furnishing of guarantee / co- Yes; Bank can waive this stipulation
. obligation be waived selectively on merits.
14 What are the processing charges 1% of loan amount with a minimum
. payable of Rs.250/-
15 Whether second loan can be Yes; can be availed within the
. availed during the pendency of overall eligibility, provided
the first loan? repayments are regular in the first
loan.
16 Whether insurance is mandatory Not mandatory
.