When planning to borrow a personal loan, the interest rate is one of the most important factors to consider. It directly affects your monthly EMI, total repayment amount, and overall loan affordability. Canara Bank, one of India’s leading public sector banks, offers a wide range of personal loan products with both fixed and variable (floating) interest rate structures.
In this detailed guide, we’ll break down Canara Bank’s personal loan interest rates, explain how they are linked to the Repo Linked Lending Rate (RLLR), compare fixed vs variable options with tables, and discuss the key factors that influence your rate.
Understanding Canara Bank Interest Rate
Canara Bank Personal Loan Interest Rates are mainly of two types, Variable & Floating rates. The Canara Bank fixed interest rate is an interest rate fixed for the entire loan tenure. Whereas the Canara Bank Floating Interest Rate is linked to the Repo Rate and keeps changing as per the repo rate-linked lending rate (RLLR) of the bank..
Most of Canara Bank’s retail lending schemes, including personal loans, are linked to the Repo Linked Lending Rate (RLLR).
- The RLLR is a benchmark rate that moves in line with the Reserve Bank of India’s (RBI) repo rate.
- To this base rate, Canara Bank adds a Credit Risk Premium (CRP) and a Fixed Rate Premium (FRP) (if applicable), plus or minus any special concessions. The result is your effective interest rate.
As of June 12, 2025:
- The RLLR of Canara Bank is 8.25% for new accounts opened on or after this date (or on or after February 12, 2023).
- For accounts opened before February 12, 2023:
- RLLR is 8.40% if the account has not completed three years.
- RLLR is 8.25% if the account has completed three years.
This means your personal loan rate can vary depending on when your account was opened, your risk grade, and the loan scheme you choose.
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Canara Bank Personal Loans Fixed Interest Rates
If you want predictability in your EMIs, Canara Bank offers several personal loan products with fixed interest rates. These rates remain constant throughout the loan tenure, protecting you from future changes in the repo rate.
Fixed rates are calculated as:
Fixed Interest Rate = RLLR + Fixed Rate Premium (FRP) + Credit Risk Premium (CRP) – Concessions (if any)
Here’s a detailed look at Canara Bank’s fixed personal loan interest rates, based on an RLLR of 8.25%:
| Loan Product (Fixed Rate) | CRG | Effective Fixed Rate of Interest |
| Canara Budget – Individual | CRG 1 | 13.35% |
| Canara Budget – Individual | CRG 2 | 13.40% |
| Canara Budget – Individual | CRG 3 | 13.90% |
| Canara Budget – Individual | CRG 4 | 15.40% |
| Canara Budget – Prime (With Salary Tie-up) | CRG 1, 2, 3 | 10.40% |
| Canara Budget – Prime (With Salary Tie-up) | CRG 4 | 15.40% |
| Canara Budget – Prime (Without Salary Tie-up) | CRG 1, 2, 3 | 11.40% |
| Canara Budget – Prime (Without Salary Tie-up) | CRG 4 | 15.40% |
| Canara Budget – Delight (With Salary Tie-up) | CRG 1, 2, 3 | 11.40% |
| Canara Budget – Delight (With Salary Tie-up) | CRG 4 | Not Eligible |
| Canara Cash | NA | 15.55% |
| Teachers Loan (Discontinued, existing loans only) | CRG 1 | 13.00% |
| Teachers Loan (Discontinued, existing loans only) | CRG 2 | 13.05% |
| Teachers Loan (Discontinued, existing loans only) | CRG 3 | 13.55% |
| Teachers Loan (Discontinued, existing loans only) | CRG 4 | 15.05% |
| All Other Personal Loans | CRG 1 | 14.50% |
| All Other Personal Loans | CRG 2 | 14.55% |
| All Other Personal Loans | CRG 3 | 15.05% |
| All Other Personal Loans | CRG 4 | 16.00% |
| Canara Pension – General Public | NA | 11.50% |
| Canara Pension – Our Bank Retirees | NA | 11.00% |
| Canara Pension – Retirees (Mediclaim premium) | NA | 9.50% |
| Canara-HEAL | NA | 11.30% |
| Canara Readycash | NA | 11.70% |
| Canara Insta MF Loan | NA | 10.00% |
Key Insight: Fixed rates are slightly higher than variable ones but ideal if you want EMI stability.
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Canara Bank Personal Loans Variable Interest Rates
If you’re comfortable with market fluctuations, you can opt for a variable interest rate personal loan. Here, the rate changes in line with the RBI’s repo rate, meaning your EMIs may go up or down during the loan tenure.
Variable rates are calculated as:
Variable Interest Rate = RLLR + Credit Risk Premium (CRP) Concessions (if any)
Here’s a detailed look at Canara Bank’s variable personal loan interest rates, based on an RLLR of 8.25%:
| Loan Product (Variable Rate) | CRG | Effective Variable Rate of Interest |
| Canara Budget – Individual | CRG 1 | 12.90% |
| Canara Budget – Individual | CRG 2 | 12.95% |
| Canara Budget – Individual | CRG 3 | 13.45% |
| Canara Budget – Individual | CRG 4 | 14.95% |
| Canara Budget – Prime (With Salary Tie-up) | CRG 1, 2, 3 | 9.95% |
| Canara Budget – Prime (With Salary Tie-up) | CRG 4 | 14.95% |
| Canara Budget – Prime (Without Salary Tie-up) | CRG 1, 2, 3 | 10.95% |
| Canara Budget – Prime (Without Salary Tie-up) | CRG 4 | 14.95% |
| Canara Budget – Delight (With Salary Tie-up) | CRG 1, 2, 3 | 10.95% |
| Canara Budget – Delight (With Salary Tie-up) | CRG 4 | Not Eligible |
| Canara Budget – Special Package (With Salary Tie-Up) | NA | 12.65% |
| Canara Budget – Special Package (Without Salary Tie-Up) | NA | 13.65% |
| Canara Cash | NA | 14.80% |
| Teachers’ Loan (Discontinued, existing loans only) | CRG 1 | 12.25% |
| Teachers’ Loan (Discontinued, existing loans only) | CRG 2 | 12.30% |
| Teachers’ Loan (Discontinued, existing loans only) | CRG 3 | 12.80% |
| Teachers’ Loan (Discontinued, existing loans only) | CRG 4 | 14.30% |
| All Other Personal Loans | CRG 1 | 13.75% |
| All Other Personal Loans | CRG 2 | 13.80% |
| All Other Personal Loans | CRG 3 | 14.30% |
| All Other Personal Loans | CRG 4 | 15.25% |
| Canara Pension – General Public | NA | 11.00% |
| Canara Pension – Our Bank Retirees | NA | 10.25% |
| Canara Pension – Retirees (Mediclaim premium) | NA | 8.75% |
| Canara-HEAL | NA | 10.55% |
| Canara Readycash | NA | 9.95% |
| Canara Insta MF Loan | NA | 9.25% |
*CRG stands for Credit Risk Grade
Key Insight: Variable rates start lower than fixed ones, but your EMI may change depending on repo rate revisions.
Important Considerations for Borrowers
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Canara Bank Personal Loan EMI Calculator
An EMI calculator is an essential tool to estimate how much you’ll pay every month before taking a loan. Canara Bank provides access to an online calculator where you can enter:
- Loan amount (e.g., ₹5 lakh)
- Tenure (1–7 years)
- Interest rate (fixed or variable, as applicable)
The Canara Bank Personal Loan EMI Calculator then shows your monthly EMI, total interest payable, and total repayment amount.
For example:
- Loan amount: ₹5,00,000
- Tenure: 5 years
- Interest Rate: 12%
Your EMI will be approximately ₹11,122 per month, with a total repayment of ₹6,67,320 (including ₹1,67,320 as interest).
This helps you plan your budget and decide between fixed vs variable rates more effectively.
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Comparison of Personal Loan Interest Rates
Rates vary widely across banks and NBFCs. Your own quote depends on credit score, employer type, and internal policies. The table shows market ranges seen for popular lenders. Use it only to benchmark. The lowest rate is not always best if fees are high or service is slow.
| Personal Loan Lender | Typical Rate Range (p.a.) | Processing Fee Range |
| Canara Bank | 11.50% to 18.50% | 0.50% to 1% |
| State Bank of India | 11.00% to 16.50% | Up to 1.50% |
| HDFC Bank | 10.50% to 24.00% | Up to 2.50% |
| ICICI Bank | 10.75% to 22.00% | Up to 2.50% |
| Axis Bank | 10.75% to 22.00% | Up to 2% |
| Kotak Mahindra Bank | 10.99% to 24.00% | Up to 2.50% |
| Bank of Baroda | 10.90% to 18.50% | Up to 2% |
| Punjab National Bank | 11.40% to 17.00% | Up to 1.50% |
| Union Bank of India | 11.40% to 16.50% | Up to 1% |
| IDFC FIRST Bank | 10.99% to 23.00% | Up to 2% |
| Bajaj Finance (NBFC) | 12.99% to 35.99% | Up to 3% |
Factors Affecting Canara Bank Personal Loan Interest Rates
Several factors determine the final personal loan interest rate you are offered by Canara Bank. Let’s go through the factors that affect the interest rates of the Canara Bank Personal Loan.
- Credit Risk Grade (CRG): A stronger CRG rating (lower risk profile) results in lower interest rates.
- Credit Score: Higher credit scores (750+) improve eligibility and reduce borrowing costs.
- Employment Type: Salaried employees with salary tie-ups generally get better rates than self-employed individuals.
- Income Level: Higher and stable income often results in lower interest rates.
- Loan Amount & Tenure: Shorter tenures may carry slightly higher rates but reduce total interest outgo.
- Concessions & Offers: Special concessions for women borrowers, government employees, or pensioners may apply in certain schemes.
- Repo Rate Movements: Since Canara’s rates are linked to RLLR, any RBI repo rate change directly impacts variable interest rates.
Which Option Should You Choose?
- Choose Fixed Rates If: You want stability, predictable EMIs, and don’t want to worry about repo rate fluctuations.
- Choose Variable Rates If: You’re willing to take some risk, and you believe repo rates might fall in the future, lowering your EMIs.
Conclusion
Canara Bank’s personal loan interest rates for 2025 offer a great balance of flexibility and affordability, whether you choose fixed or floating rates. Understanding your Credit Risk Grade (CRG) and eligibility will help you make an informed decision. With loan options for salaried employees, self-employed professionals, and pensioners, Canara Bank provides a comprehensive solution to meet your financial needs.
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