CANARA PENSION-607
NF-546 Specimen card
NF-965 Loan Application Form
NF -991 Delivery letter to DPN
NF-967 Certificate of compliance of term and conditions.
NF-803 Letter Evidence Execution of Documents.
Cibil
Interest Variation
Sanction Memorandum
Sanction Memorandum:
Containg all the “Most Important Term & Conditions”(as per Cir 99/2015 to be modified
Suitably) to be prepared in dublicate. The term and conditions should be properly explained
to the borrowerand signature to be obtained from the borrower foe having understood the
same and being acceptable to them. The copy signed by the borrower should be retained at
branch and other copy be handed over to the borrower for their records and references.
Appendix-19 Irrevocable Mandate (Cir 167/2016).
Annexure-3 Loan Sanctioned is to be informed to Pension Disbursing Authority with a
request to not shift the pension without obtaining No Objection Certificate
(NOC) from us(Cir 167/2016).
Purpose: To meet the cost of medical expenses and other genuine needs.
Eligibility: Pensioners of Central / State Governments / PSUs / Corporate Pensioners /
Pensioners of Banks provided they all draw pension through our branches and Family
Pensioners of all the above categories.
Quantum:(Cir 66/2020)
• In respect of Retired Employees of our Bank/Family Pensioners of Retired Employees
of our Bank- 20 months pension amount or Rs.10,00,000/- whichever is less, subject
to NTH of 25% after deducting the proposed EMI.
• In respect of General Public /Defence / Family Pensioners as per the below table:
NTH 40%
• For General Public Pensioners
Age at the time of Max Loan Amount Repayment Period Age at the time full
Loan Sanction (18Months Pension of repayment
Rs)
Below 70 Years 10 Lakhs 60 Months Upto 75 years
Above 70 – 75 Years 5 Lakhs 36 Months Upto 78 years
• For Defence Pensioners
Age at the time of Max Loan Amount Repayment Period Age at the time full
Loan Sanction (24Months Pension of repayment
Rs
Below 50 Years 10 Lakhs 84 Months 57 Years
50- 60 Years 8 Lakhs 60 Months 65 Years
60-70 Years 6 Lakhs 48 Months 74 Years
70-75 Years 5 Lakhs 24 Months 77 Years
• For Family Pensioners (General/Defence/Our Bank Pensioners) :
Age at the time of Max Loan Amount Repayment Period At the age of full
Loan Sanction (18Months Pension of Repayment
Rs
Below 70 Years 5 Lakhs 60 Months Upto 75 Years
70-75 years 3 lakhs 36 Months Upto 78 years
Rate of Interest:(501/2019) :
• General Public RLLR + 3.30
• CANARA PENSION(Retired Employees of the Bank and family pensioners of such
deceased retired employees - As per Cir.497/2017) RLLR + 2.10
• CANARA PENSION(Retired Employees of the Bank and family pensioners of such
deceased retired employees to Avail loan for repayment of annual premium of the
IBA Group mediclaim Insurance Policy RLLR + 2.10.
Security:
1. In case of Loan to Pensioners:Co-obligation of the spouse (wherever there is a provision
for family pension) or any other person/pensioner good for the amount, if necessary, may be
stipulated by the sanctioning authority.
2. In case of Loan to Family Pensioners: Third party guarantee/co-obligation good for the
amount should be obtained invariably
Sanctioning Authority : Branch-In Charge is the Sanctioning Authority irrespective of size
of branch. In case of VLBs and ELBs credit / Senior Managers, who are not branch heads can
also sanction loan.
Processing Charges: Processing charges are waived in respect of the loans under this
scheme
Margin : NIL
Scheme Code: 70500
Sector Code: 25100
Documents:
• 2-Passport Size Photograph of both Parties
• KYC of both Pensioner and Co-obligant
• A copy of PPO kept with loan paper
• Branch has to ensure monthly pension is credited to his/her savings account.
• Loan Sanctioned is to be informed to Pension Disbursing Authority with a request to
not shift the pension without obtaining No Objection Certificate (NOC) from us.
Second Canara Pension:
• Maximum loan eligibility of Retired Employees of our Bank/Family Pensioner of
Retired Employees of our Bank to remit the Annual Premium of the IBA Group
Mediclaim Insurance Policy as a Second Loan shall be
• The amount of Annual Premium payable for the year.
OR
• Maximum eligible loan amount as per Canara Pension Loan Scheme (presently
maximum loan of Rs.5,00,000/-) MINUS existing liability if any
OR
• Rs. 90000/- Whichever is lower of the above three.
• However, the maximum loan liability at the time of sanction and disbursement of loan
under both the component shall not exceed 20 months pension amount or Rs.
500000/- (whichever is lower)., subject to NTH of 25% after deducting the proposed
EMI.
• 10 Equated Monthly Installments irrespective of the age of the Pensioner. First
installment to commence from the subsequent month after disbursement.
Prepared By
SANTOSH(109350)
