Benefits of Canara Bank Personal Loan Overdraft (OD) Facility

• Flexible Fund Access: Withdraw funds as needed up to the approved credit limit, ideal for recurring or unexpected expenses like medical bills, education, or travel. Reuse the credit line as you repay without reapplying, unlike traditional term loans.
• Cost-Effective Interest: Interest is charged only on the amount withdrawn, not the entire limit, reducing borrowing costs. Competitive rates (10.70%–16.15% p.a.) with lower rates for salary tie-up accounts (~10.95% p.a.), saving money compared to high-interest credit cards.
• No Prepayment Penalties: Repay the utilized amount early without extra charges, offering flexibility to manage finances.

Steps to Apply for Canara Bank Personal Loan Overdraft (OD) Facility

• 1. Online Application Process
  • Visit the Official Platform:
    • Go to Canara Bank’s website (www.canarabank.com) or download the Canara Ai1 app from Google Play Store or Apple App Store.
    • Alternatively, log in to Canara Bank Internet Banking if you’re an existing customer.
  • Select the Personal Loan Overdraft Scheme:
    • Navigate to the “Loans” or “Retail Loans” section and choose the relevant overdraft scheme (e.g., Canara Ready Cash or Canara Instant Overdraft).
    • For Canara Instant Overdraft, ensure you hold a Premium Payroll Package or SB Jeevandhara Diamond/Platinum account with 6 months of salary/pension credits.
  • Check Eligibility:
    • Confirm you meet criteria (e.g., salaried individuals with ₹50,000/month salary, pensioners, or premium account holders).
    • A threshold credit score may be required, especially for instant overdrafts.
  • Fill the Application Form:
    • Provide personal details (name, contact, address), employment details (salary, employer), and loan requirements (desired limit).
    • Use Aadhaar-enabled OTP for digital documentation, e-signing, and e-stamping where applicable.
  • Upload Documents:
    • Upload scanned copies or digital versions of:
    • Identity Proof: Aadhaar, PAN, passport, or voter ID.
    • Address Proof: Aadhaar, utility bill, or rental agreement.
    • Income Proof: Last 3–6 months’ salary slips, Form 16, or bank statements showing salary/pension credits.
    • Others: Employer salary mandate or pension payment order (if required).
    • Ensure documents are clear and meet the bank’s specifications.
  • Submit Application:
    • Review and submit the application. For instant overdrafts, approval may be immediate if pre-approved, with funds credited to your account quickly.
  • Track Application:
    • Use the application reference number to track status via the Ai1 app, internet banking, or by contacting customer care (1800-425-0018).
• 2. Offline Application Process
  • Visit a Canara Bank Branch:
    • Locate the nearest branch using the bank’s website or Ai1 app.
  • Request the Application Form:
    • Ask for the personal loan overdraft application form for the desired scheme (e.g., Canara Budget or Canara Ready Cash).
  • Submit Documents:
    • Provide physical copies of:
    • Identity, address, and income proofs (as listed above).
    • Recent passport-sized photographs.
    • Salary mandate letter from the employer or pension documents, if applicable.
  • Complete Verification:
    • The bank will verify your documents, credit score, and eligibility. This may include a field visit or employer verification for certain schemes.
  • Await Approval:
    • Upon approval, the overdraft limit is set up in your account, and you’ll receive confirmation via SMS/email or branch communication.

Eligibility Criteria for Canara Bank Personal Loan Overdraft

• Applicant Categories:
  • Salaried Individuals:
    • Permanent employees of government, public sector undertakings (PSUs), reputed private companies, or IT/BT firms.
    • Must have a salary account with Canara Bank for at least 6 months with consistent salary credits.
  • Pensioners:
    • Individuals receiving pension through Canara Bank (e.g., central/state government pensioners or those under Canara Bank pension schemes).
    • Pension account with the bank for at least 6 months.
  • Premium Account Holders:
    • Holders of Premium Payroll Package or SB Jeevandhara Diamond/Platinum accounts for schemes like Canara Instant Overdraft.
• Minimum Income/Salary:
  • Canara Budget: Minimum gross salary requirements vary; typically, net take-home salary after EMI deductions should be at least 25% of gross salary or ₹10,000, whichever is higher.
  • Canara Ready Cash: Minimum monthly salary credit of ₹50,000 in the Canara Bank account.
  • Canara Instant Overdraft: Salary/pension credits consistent with premium account requirements (specific income thresholds not publicly detailed but tied to account type).
• Age Criteria:
  • Generally, applicants should be between 21 and 60 years for salaried individuals (upper limit may vary based on retirement age).
  • For pensioners, the maximum age at loan maturity is typically 70–75 years, depending on the scheme.
• Credit Score:
  • A good credit score is required, especially for instant overdraft facilities. While exact thresholds aren’t specified, a score above 700–750 is generally preferred for better terms and approval.
  • Canara Instant Overdraft explicitly requires a threshold credit score for eligibility.
• Salary/Pension Mandate:
  • For salaried applicants, a salary mandate from the employer to credit salary to the Canara Bank account is mandatory.
  • For pensioners, a pension payment order registered with Canara Bank is required.
• Work Experience:
  • Salaried individuals need a minimum of 1–2 years of confirmed service with their employer, depending on the scheme.
  • Specific schemes like Canara Ready Cash may prioritize employees of reputed organizations with stable employment.
• Account Relationship:
  • Applicants must have an active Canara Bank account (savings or salary/pension) with regular transactions for at least 6 months.
  • For Canara Instant Overdraft, eligibility is restricted to Premium Payroll Package or SB Jeevandhara Diamond/Platinum account holders.
• Other Requirements:
  • Compliance with KYC norms (valid Aadhaar, PAN, or other identity/address proofs).
• Loan Amount Eligibility:
  • For Canara Budget, the loan amount (up to ₹20 lakh for Delight, ₹30 lakh for Prime) is capped based on repayment capacity and income multiples (e.g., 25 months’ gross salary).