Retail Loan Products- a ready reckoner

Updated till 31.08.2023

अनुसंधान और प्रकाशन अनुभाग,

केनरा बैंक प्रबंधन संस्थान, मणिपाल
Research & Publication Section,
Canara Institute of Bank Management, Manipal
 INDEX
PARTICULARS Page
1 Retail Lending Schemes 03-34
 Canara Budget
 Teachers Loan
 Canara Cash
 Canara Pension
 Swarna Loan
 Vehicle Loan – 4 Wheeler
 Vehicle Loan -2 Wheeler
 Canara Green Wheels – 4 Wheeler Electric vehicle
 Vehicle loan to Agriculturist
 Canara Solar
 Canara Jeevan
 Canara Mortgage
 Canara Rent
 Canara Site
 Home Improvement Loan
 Housing Finance
 HL to NRIs
 HL to Agriculturist
 Canara Home Loan Plus
 Housing cum Solar Scheme
 Canara Home Loan Secure
 Rain water harvesting
 Canara Kuteer
 Canara Home Loan Super gain CASA scheme
 VidhyaSagar Education Loan
 Vidhya Sahay Bridge loan
 Vidhya Turant education loan
 IBA Skill Loan scheme

2 Service Charges for Retail Loans 35

Retail Loan Products Canara Institute of Bank Management Page 1

 3 Track The Lending Rate 37

4 CIC Corner 42

5 Delegation of Powers for branches 45

6 Documentation 48

7 Payment to outsourcing Agencies 51

8 Fraud Prevention 52

9 Retail Circulars –2022 54

Retail Loan Products Canara Institute of Bank Management Page 2

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA To meet any Term Loan – 6 to 15 months - Only for salaried class MARGIN - NIL PC NF 965
BUDGET personal/domesti Gross Salary - Confirmed employees of State, 0.50 % NF 991.
c needs Central, PSU, Joint Stock Co. & our REPAYMENT-TL – 84 EMI Min Rs.1000 Undertaking Letter
Clean OD: up to a maximum of clients by RSA (794/21) Max Rs.5000
(TL & OD) Rs. 3.00 lakhs (subject to
Non-priority renewal once in 2 years) - Maintain salary account REPAY –OD DC Mandate duly
OD FACILITY: - Undertaking letter not to shift the Subject to renewal once Nil registered
433/2022, Only for top SA No of Max salary without our NOC. in 2 years (wherever app) or
507/2022 executives in Monthly Amoun Inspection ECS/ NACH as
Govt. / private Gross t New Account- 3 months’ salary SECURITY- Nil Applicable.
sector Salary credited in a/c. Co-obligant also should
Small Br 6 2 lac Clean OD: To the Top Executives in join the borrower for
Medium 6 3 lac the cadre of Secretary, Additional / executing the loan In case of OD to Top
Large 6 4 lac Joint Secretaries and above in papers. INTEREST ON Executives , branch
CM/DM - 10 5 lac Central Govt. / Secretaries to State CLEAN OD may, at their
VLB/ELB Govt. & top Executives of big CGM/GM-CO-CAC is Interest shall discretion, waive
AGM - 10 6 lac Corporate/PSU Chairman/MD, etc. empowered to waive be serviced opening of SB
ELB obtention of Co- periodically accounts/salary
SPECIAL PACKAGES PERMITTED BY obligation where Gross credit /letter of
AGM – 10 7 lac
RO/CO- THE CO: salary is more than Concession on undertaking from
CAC Where NPA of previous month is Rs.1.00 lakh subject to ROI to Women the borrower.
above 3% under scheme, branch-in- compliance of the certain Beneficiaries
DGM – 12 8 lac
charge can permit Waiver of conditions [0.50% from
Br/RO
undertaking letter from Employer applicable
DGM- 15 9 lac Not to Shift Salary a/c wherever NTH should not be less
CO-CAC ROI]
Salary A/cs are maintained, than 25% or 10000/- pm
CGM/G 15 15 lac CGM/GM-CO-CAC >3% to whichever is higher.
M –CO-
5%,CGM/GM-HO-CAC Above CO Head CAC and above
CAC
5%(851/2020) may reduce NTH to 25% or
CGM/G 15 times
M-HO- (Above 10 lacs) Rs.7500/-whichever is
CAC higher. (CGM, GM-HO CAC
can reduce NTH to 20% or
Rs.7500/- whichever is
higher)

Retail Loan Products Canara Institute of Bank Management Page 3

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA All employees of: Minimum 6 months’ salary Rs 1,000/- + Security: NIL (Co-
BUDGET Any genuine Minimum of Rs. 10,000 &.  Central/State Govt. / Reputed should have been GST Obligation waived)
[DIGITAL requirements Maximum Loan of PSUs received regularly in the
LENDING other than Rs. 1,00,000/- applicant’s account Digital Documentation:
PLATFORM] speculative  Reputed Corporates/Public Ltd. maintained with our Bank Verification 1. Online Loan
purposes. Companies /Private Institutions. & should have dealing Charges: Application
97/2021 Product Code: 626  Lecturers/Asst. Professors with our bank for last One Rs 100+ GST parameter are in
Scheme Code: 101400 /Professors of Colleges/ year. tune with NF965
Research Institutes and E-Stamping 2. Rating Score
Universities. NTH: Minimum NTH of Charges: Card –Canara Retail
Relaxations and concessions  IT/BT Companies borrower should not be Rs 200/- Grade (HO Cir
permitted under various special less than 25% or 825/2021)
packages under Canara Budget Customers who have availed Rs10000/- p.m. E-signing 3. Simplified Loan
Scheme including ROI & PC “Unsecured Personal Loan under whichever is higher after charges Agreement
Charges concession, can be STP” up to Rs 1.00 Lakh in DLP & are meeting the proposed Rs 7 +GST
extended to “Unsecured Personal eligible for higher quantum under loan
Loan under straight through general Canara Budget Scheme (or Instalment CIBIL ISSUE IBA ON
process”, if customer is otherwise Special Packages permitted under 50+GST RETAIL ASSETS
eligible as per the permitted Canara Budget), can avail ROI: RLLR + 4.90% WING, HO (DP CODE
Special Package differential eligible loan amount by 0029) FOR
paying applicable differential Repayment:36 monthly COLLECTION OF E-
processing charges, duly reckoning EMI STAMPING
both the loans as single loan CHARGES OF Rs
200/- TILL SYSTEM
AUTOMATION-
429/2021

Retail Loan Products Canara Institute of Bank Management Page 4

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
Canara Budget- To meet any Sanctio Quantum CRG All the confirmed employees of: NTH: Minimum Net Take 100% waived Co-obligation of
Prime (with & personal/domesti ning Central Government/State Home Salary (NTH) of spouse/legal heir of
without salary c needs of the Authori Government / Personnel from borrower should not be Tenor the borrower.
tie up) proposed ty Defence and Paramilitary Forces / less than 25% or Rs. elongation:
borrower and not Respect 25 months Up to PSUs & Autonomous Bodies of 10,000/- p.m. whichever The Wherever spouse/
194/2023 for speculative ive gross salary Moder Central & State Govt. is higher after meeting repayment legal heir of the
purpose. Branch subject to ate Risk installments of all period should borrower is not
Head a (CRG-
Minimum 1 year of service &
confirmed in the service. existing loans and be fixed in available, suitable
maximum 3 proposed loan. such a way Co-obligation good
of 20.00 Second and Subsequent loan during that the for the loan amount
lakh s. the currency of the existing loan: Repayable in 84 equated entire liability and acceptable to
 Within the overall limit fixed monthly installments. gets cleared the bank should be
RO 25 Months’ Up to subject to NTH. before one obtained
Head- gross High ROI with salary tie up month, the irrespective of
 To be sanctioned only after
CAC Salary, Risk Risk Grade employee quantum of loan.
(CRG-
completion of two years from
subject to CRG1,2,3-RLLR+1.40% attains However, as far as
a max of Rs. 4) disbursement of first loan.
CRG4-RLLR+6.40% superannuatio possible,
30.00  First loan shall be closed either n. Further, cross/mutual co-
Lakh. from own funds or from the Without salary tie-up entire obligation to be
proceeds of the second loan. CRG1,2,3-RLLR+2.40% repayment avoided.
GM- Above 25 Up to Same shall be mentioned in the CRG4-RLLR+6.40% period shall
HOCAC Months’ High sanction. not exceed
& above gross Salary Risk
authorit and above (CRG-  At any point of time only one maximum
ies Rs. 3) loan shall be outstanding under tenor of 96
30.00 the scheme months.
Lakh
 The existing loan shall be standard
with nil over-dues while sanctioning
subsequent loan.

Retail Loan Products Canara Institute of Bank Management Page 5

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
Canara Budget To meet any Sanctio Quantu CRG All the confirmed employees of: NTH: Minimum Net Take 100% waived Co-obligation of
Delight with personal/domestic ning m Reputed Corporates /MNCs / Public Home Salary (NTH) of spouse/legal heir of
salary tie up needs of the Authorit & Private Ltd. Companies/Private borrower should not be Tenor the borrower.
proposed borrower y Institutions / Universities, Reputed less than 25% or Rs. elongation:
194/2023 and not for Respecti 25 Up to Schools, Reputed Colleges, Reputed 10,000/- p.m. whichever The Wherever spouse/
speculative ve months Moderat Hospitals & IT BT Companies. is higher after meeting repayment legal heir of the
purpose. Branch gross e Risk installments of all period should borrower is not
Head salary (CRG-3
Minimum 1 year of service &
existing loans and be fixed in available, suitable
subject confirmed in the service.
proposed loan. such a way Co-obligation good
to a  Within the overall limit fixed
maximun
that the for the loan amount
subject to NTH. Repayable in 84 equated entire liability and acceptable to
of 15.00
lakhs.  To be sanctioned only after monthly installments. gets cleared the bank should be
completion of two years from before one obtained
disbursement of first loan. ROI with salary tie up month, the irrespective of
RO 25 Up to Risk Grade employee quantum of loan.
Months’ High Risk
 First loan shall be closed either CRG1,2,3-RLLR+2.40% attains However, as far as
Head-
CAC gross (CRG-3) from own funds or from the CRG4-Not eligible for superannuatio possible,
Salary, proceeds of the second loan. loan. n. Further, cross/mutual co-
subject Same shall be mentioned in the entire obligation to be
to a max sanction. Without salary tie-up: repayment avoided.
of Rs.
20.00  At any point of time only one Not eligible for loan. period shall
Lakh. loan shall be outstanding under not exceed
the scheme maximum
The existing loan shall be standard with tenor of 96
GM- Above 25 Up to nil over-dues while sanctioning months.
HOCAC & Months’ High Risk subsequent loan
above gross (CRG-3)
authoriti Salary
es and
above
Rs. 20.00
Lakh

Retail Loan Products Canara Institute of Bank Management Page 6

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
TEACHERS To meet any 1. The Branch In-charge of Confirmed/regular teaching/non- MARGIN PC NF965,
LOAN personal/ Small, Medium & Large teaching staff having salary Credit Nil 1.00 % NF 991
domestic needs of branches as well as Credit A/c + undertaking letter not to Min –Rs 50 Co-obligation
the proposed Managers/ Senior Managers in shift salary REPAY - 48 EMI (60 EMI by Max–No Limit ECS /NACH Debit
142/2020 borrower and not VLB / ELB are vested with NHA) Mandate
for speculative powers to sanction loans NTH-30%or Rs 10,000/- DC Rating Score Card –
purpose. under the scheme up to 6 whichever is higher Nil Canara Retail
months’ gross salary subject CGM/GM-HO-CAC-upto Grade
to a maximum of Rs.2 lakh. 25%, min. 7,500/- under Inspection
special packages. Nil
2. A quantum of loan up to 10
months’ gross salary subject
to a maximum of Rs.
3,00,000/- may be permitted
by CM of VLB, AGM of ELB,
DM/AGM RO-CAC, DM-CO-CAC
/AGM-CO- CAC and above
authorities.
CANARA CASH Personal. Max Rs. 20 lakhs wherever De-mat  Existing and new Customers MARGIN PC NF972 (Application)
Investment & accounts are maintained at our  Against security standing in the App Shares/Deb/Bonds - 0.10 % NF971 Letter of
other needs 50% of Market Value Min Rs.100 request, NF 991, NF
Non-Priority Authority Powers name of close relatives can also be
Against PSU Bond - 30% of MV Max Rs.250 887- 3RD Party,
granted.
shares/debenture Small /Medium Br in 3 lac
 Substitution of securities should not
205/2010,271/2 s, bonds, units of Charge Unit of UTI /CBMF -50% of DC OD- NF101+372
be permitted for more than 10
016, 435/2016, UTI and Canara Br In charge LB/SM in 5 lac NAV/ repurchase price or Nil Approved Shares,
VLBs/ELBs occasions. Debentures, Bonds,
139/2018 Robecco held in the market value,
demat forms.  2nd loan during currency of the whichever is lower Inspection CB Mutual Fund
CM - VLB/ELB/DM- 7 lac Units.
existing loan based on Nil
RO-CAC/DM-CO-CAC
AGM –ELB 10 lac creditworthiness and repaying No fresh loan/advances
(Loan against
AGM RO- CO CAC capacity by NHA at CO. shall be granted against For every
Units of Debts substitution /
Oriented Mutual DGM –Br 20 lac  No loan against Tax Saving Scheme. securities held in
materialized form release, a fee
Fund Scheme max DGM RO- CO CAC
REPAY – 60 EMI of Rs.100/-
10 lacs with 25% CGM/GM-CO-CAC 20 lac should be
margin) Can be sanctioned as OD
DPs collected.

Retail Loan Products Canara Institute of Bank Management Page 7

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA To meet the cost State Central, pensioners; family pensioners drawing Pension through our Margin - Nil PC Co-obligation of
PENSION of genuine Bank Nil the spouse/ other
personal needs of person
the pensioners/ DC
Non Priority Family Pensioners/Family Pensioners (other than Retired employees /Family Repayment Period: Nil
Pensioners/ pensioners of our Bank): NF 965
Repayment period and
66/2020, payment of age at the time of full Inspection NF 991
premium of IBA Age wise maximum loan and repayment period specified
142/2020, repayment are to be Nil
Group Mediclaim
For General Public Pensioners/Family Pensioners (Max 24 months adhered for all categories Irrevocable
528/2021 Insurance Policy. of pensioners as
pension) Mandate as per
109/2023 mentioned in above table APPENDIX- 19 of
Age at the time of Max Loan Amt Repayment Age at the time of full Retail Manual
Loan sanction (24 months Period Repayment
Letter to be
Pension or Rs.)
addressed to the
Below 60 years 15.00 lakhs 84 months Up to 67 years Pension Disbursing
60 - 70 years 10.00 lakhs 60 months Up to 75 Yr Authority
70 - 75 years 5.00 lakhs 36 months Up to 78 Yr
For Defence Pensioners(Max 24 months pension)
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

Retail Loan Products Canara Institute of Bank Management Page 8

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
Canara Pension Scheme for Retired REPAYMENT: PC NF.965
Employees of our Bank/Family 20 months’ pension amount OR Rs. 10,00,000/- whichever is lower i) To be repaid in 72 EMIs Nil NF.991
Pensioners of Retired Employees of if the pensioner is below
our Bank. Subject to maintenance of minimum NTH of 25% of Gross pension DC Irrevocable
the age of 65 years. Mandate as per
551/17, 497/2017, 526/2018, credited to the account after deducting the existing and proposed EMI of Nil
both component. ii) To be repaid in 60 EMIs APPENDIX- 19 of
66/2020, 787/2020, 528/2021 if the pensioner is above Inspection Retail Manual
the age of 65 years Nil Letter to be
COMPONENT -1 addressed to
To meet the cost of medical expenses Pension Disbursing
and other genuine personal needs of Authority.
the pensioners/Family Pensioners.

COMPONENT –2 Quantum: Rs. 90,000/- 10 EMIs irrespective of Security-

To make payment of premium of IBA the age of the pensioner. a) Loan to
Computation: Maximum to remit annual Premium of Mediclaim Insurance First installment to
Group Medi-claim Insurance Policy for Policy as a Second Loan shall be: Pensioner:
Retired Employees of our commence from the
i. Amount of Annual Premium payable for the year OR subsequent month after Co-obligation of the
Bank/Family Pensioners of Retired spouse or any other
Employees of our Bank who have disbursement.
ii. Maximum eligible loan amount as per Canara Pension Loan Scheme person/ pensioner.
opted for and are covered under the (presently maximum loan of Rs.10,00,000/-) MINUS existing liability if
scheme. b) Loan to Family
any. OR pensioner:
iii. Rs. 90000/- Whichever is lower of the above three. Third party
However, the maximum loan liability at the time of sanction and guarantee/co-
disbursement of loan under both the component shall not exceed 20 obligation.
months’ pension amount or Rs. 10,00,000/- (whichever is lower).

Retail Loan Products Canara Institute of Bank Management Page 9

SWARNA LOAN To meet the Minimum loan Rs 5,000 SB account holder with satisfactory REPAYMENT – PC NF-1009- Revised
Medical and other Maximum Rs35.00 lacs dealing & new customer also. 12 months from the date 0.50 % Application cum
unforeseen of sanction as bullet Min –Rs 500 letter of pledge for
Non-Priority expenses (HO Cir 621/2021) Max Rs. 5000 Swarna Loan
SECURITY: payment along with
/investment/dom interest DC Nil against Gold
Product code- estic expenses. Against the pledge of gold Inspection Jewellery.
ornaments/Jewellery which are duly Nil (HO Cir 785/20)
Canara Bank 65% of the appraised value (To apprised by the jewel appraiser Method of Appraisal &
608 maintain LTV ratio of 75% during appointed by the Bank. The loan is Monitoring
the entire loan period) w.e.f to be granted only against INTRODUCTION OF
01.04.2021 Existing guidelines as
ornaments, specially minted Gold advised under gold loan NOMINATION
(Ho Cir 187/2021)
621/2021, Coins sold by Banks and not against for agricultural purposes Payment of FACILITY FOR ALL
731/2021,  The maximum aggregate gold coin, bullion etc. Total weight are to be adhered to. Jewel GOLD LOAN
11/2022 sanctioning powers per of specially minted gold coins (sold Appraiser SCHEMES (87/2021)
borrower under all the three by the Banks) should not exceed 50 Fees at
grams per customer. Lending rates for all gold Regional
schemes namely Swarna loan, Reappraisal of
loan schemes have been Office (RO)
Swarna OD & Swarna Express ROI fixed separately and level Jewellery also to be
shall be fixed at Rs 50.00 Lakh RLLR+0.35 % made available in the link HO done at as per
Cir guidelines.
(For Branch-In-charge of Small (Rate of interest for Swarna Loan Cannet>>Quick 930/2020
Branches), Rs 70 Lakhs (For Schemes Revised till 31.03.2022-HO Links>>Gold Rate Charges
Branch-In-charge of Medium & Cir731/2021) sovereign touch gold (22 revised in HO
Large Branches), & Rs 105 carat gold) Cir 661/2021
lakhs (For Credit
Managers/Senior Managers in
VLBs/ELBs).
 Wherever, then limits are
exceeding the proposed
Delegated Powers in case of
Branch-In-charge of Small,
Medium & Large Branches, the
same shall be permitted by
AGM-RO-CAC & above
authorities. (HO Cir
IC/11/2022 dated
04.01.2022)

Retail Loan Products Canara Institute of Bank Management Page 10

 SWARNA To meet the Minimum Amount: Rs5000/- SB a/c holders with satisfactory Bullet Repayment - 6 PC NF 1009 -
Express Medical and other dealings. May be waived for well months 50% of Application-cum-
unforeseen Maximum: Rs35.00 lacs. introduced/credit worthy people. charges Letter of Pledge for
expenses/ ROI: applicable to Swarna Loan
Non-Priority investment/ However, the overall maximum Swarna Loans /Overdraft against
Appraisal of Gold ROI as applicable to
domestic limit under non-priority gold loans Gold Jewellery
expenses. per customer is fixed at Rs. 35 As applicable to Swarna Loan. Swarna loans. DC (785/2020)
Product code- Reappraisal of Gold
Lakhs. (621/2021) Nil
Canara Bank As applicable to other agricultural SECURITY: INTRODUCTION OF
952 70% of the appraised value (To gold loans. Against the pledge of gold Inspection NOMINATION
maintain LTV ratio of 75% during DOP ornaments/ jewellery Nil FACILITY FOR ALL
551/2020, the entire loan period) w.e.f As applicable to Swarna Loans which are duly apprised GOLD LOAN
621/2021 01.04.2021 by the jewel appraiser Other charges SCHEMES (87/2021)
appointed by the Bank. such as
 The maximum aggregate The loan is to be granted appraisal
sanctioning powers per only against ornaments, charges, CIC,
borrower under all the three specially minted Gold Gold Loan
Coins sold by Banks and handling
schemes namely Swarna loan,
Swarna OD &Swarna Express not against gold coin, charges, Safe
shall be fixed at Rs 50.00 Lakh bullion etc. Total weight keeping
of specially minted gold charges, Gold
(For Branch-In-charge of Small coins (sold by the Banks) loan release
Branches), Rs 70 Lakhs (For should not exceed 50 charges to be
Branch-In-charge of Medium & grams per customer. collected
Large Branches), &Rs 105
lakhs (For Credit
Managers/Senior Managers in
VLBs/ELBs).
 Wherever, then limits are
exceeding the proposed
Delegated Powers in case of
Branch-In-charge of Small,
Medium & Large Branches, the
same shall be permitted by
AGM-RO-CAC & above
authorities.

Retail Loan Products Canara Institute of Bank Management Page 11

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
SWARNA To meet the Min Amount: Rs 5000/- SB a/c holders with satisfactory Personal needs. The PC NF 1009 -
OVERDRAFT Medical and other Maximum: Rs 35.00 lacs. dealings. May be waived for well facility will be made 0.50 % Application-cum-
unforeseen However, the overall maximum introduced/credit worthy people. available as a running Min –Rs 500 Letter of Pledge for
expenses/ limit under non priority gold loans limit and withdrawals can Max Rs. 5000 Swarna Loan
Non Priority investment/ per customer is fixed at Rs. 35 be by way of cheque DC-Nil /Overdraft against
domestic Lakhs. /through ATMs depending Folio Gold Jewellery
expenses. (Cumulative of all three schemes Appraisal of Gold upon the requirement of Charges: (785/2020)
Product code-
viz. Swarna loan, Swarna OD & As applicable to Swarna Loan. the borrower. Debiting folio
Canara Bank Swarna Express is Rs 35 Lakhs.) Reappraisal of Gold ROI: charges at INTRODUCTION OF
235 70% of the appraised value (To half yearly NOMINATION
As applicable to other agricultural ROI as applicable to
maintain LTV ratio of 75% during gold loans. Swarna loans. intervals FACILITY FOR ALL
551/2020, the entire loan period) w.e.f Other GOLD LOAN
621/2021 01.04.2021. charges such SCHEMES (87/2021)
 The maximum aggregate DOP SECURITY: as appraisal
sanctioning powers per As applicable to Swarna Loans Pledge of gold charges, CIC, Annual review
borrower under all the three ornaments/jewellery duly Gold Loan report for Swarna
apprised by the jewel handling over draft –
schemes namely Swarna loan,
appraiser. The loan is to charges, Safe Annexure – II of HO
Swarna OD & Swarna Express be granted against keeping Cir551/2020
shall be fixed at Rs 50.00 Lakh ornaments, specially charges, Gold
(For Branch-In-charge of Small minted Gold Coins sold by loan release Annual review
Branches), Rs 70 Lakhs (For Banks and not against charges to be report for Swarna
Branch-In-charge of Medium & gold coin, bullion etc. collected as overdraft in case of
Large Branches), &Rs 105 Total weight of specially per HO Cir enhancements
minted gold coins (sold by 551/20, & /part
lakhs (For Credit
the Banks) should not 621/2021 redemption/excha
Managers/Senior Managers in exceed 50 grams per nge of jewels –
VLBs/ELBs). customer. Annexure – III of HO
 Wherever, then limits are Cir 551/2020
exceeding the same shall be
permitted by AGM-RO-CAC &
above authorities.(HO Cir
IC/11/2022 dated
04.01.2022)

Retail Loan Products Canara Institute of Bank Management Page 12

 CANARA Purchase of DOP-Authority Powers Individual Professional Firms/Co. MARGIN-Central/ State PC NF965
VEHICLE Four Wheelers Branch in-charge of 5 lac (HUF not eligible). Govt./Autonomous 0.25 % NF928,373,370,371
Small Branch bodies/PSUs Employees Min Rs 1000
Cars, Jeep New Upto 10 lacs-10%; Max Rs.5000 - RTO Form in
Four Wheeler Branch in-charge of 10 lac Gross salary of not less than Rs. 3 >10-25 lacs-10%; duplicate-
Pre-Owned Medium
lacs p.a (for Salaried borrower). & > 25 lacs- 20%; 29/30/35
66/2020, Vehicles (not Branch/Credit DC
142/2020, more than 3 years Manager in Gross annual income of Rs 3.00 lacs Nil - RTO Form 20/34
143/2020, old) VLBs/ELBs as per latest ITR/ITAO subject to MARGIN – All others to be used for
843/2020, 20 lac average gross annual income (last 3 Upto 10 lacs-10%; Inspection Hypothecation
Margin on of the 1. Branch in-charge
75/2021, of Large Branch years) not less than 2.50 lakhs (for >10-25 lacs-15%; Yes - receipt, invoice,
total value Non-Salaried borrower).
159/2021, (inclusive of 2. Senior Manager > 25 lacs- 20%;
616/2021, invoice value, life in ELB/VLB The sanctioning authority can also - NACH Debit
700/2021, 3.Manager/Senior take into account any other income Pre-Owned – 50 to 60% of Mandate is to be
tax, registrations
81/2022, Manager in RAH declared by the borrower like rental assessed value /purchase REPAYMENT- compulsorily
charges,
493/2022, CM in VLB/ELB/DM- 40 lac income / income from investment/ value/ price agreed. 84 EMI obtained-where
insurance
507/2022 RO-CAC income of the father, mother, son, salary tie up is
premium and Old vehicle:
AGM in ELB 100 spouse or unmarried daughter, a. Upto Rs.15.00 lakhs waived
other accessories) Up to future
DM/AGM in RAH 100 lac subject to production of (minimum margin of
Accessories can AGM-RO-CAC life available www.vahan.nic.in
documentary evidence 40%) by RSA. not exceeding
be financed DGM Heading 200 lac for verification
b. Above Rs.15.00 lakhs 60 months.
limited up to Branch /DGM-RO- upto Rs.30 lakhs-
Rs.25000/- CAC NTH 25% or 12000/- pm whichever (minimum margin of SA is empowered to
DGM CO CAC 400 lac is higher. 50%) by RO Head-RO- disburse of vehicle
CGM/GM-CO-CAC 500 lac CGM/GM-CO-CAC & above can CAC and above higher loan proceeds by
For All Branches:
CGM/GM HO CAC Above relaxed to 20% / 12,000/- pm authority. way of NEFT/RTGS
To sanction second Circle to the dealers in
whichever is higher. c. Above Rs.30.00 lakhs
and subsequent Head CAC exceptional cases.
Pensioners: NTH for Pensioners upto Rs.50 lakhs-
Canara Vehicle to Upto 1000
Maximum cap (minimum Rating Score Card –
Corporates lac should be 50%.
margin of 50%) by Circle Canara Retail
(without any upper New – No Limit
Head- CO-CAC and above Grade (HO Cir
ceiling on the Second & Subsequent Vehicle during
higher authority. 825/2021)
number of vehicles) the Pendency of the existing Loan to
under Line of Individuals:
Credit, By RO- RAH Linked Branches: RAH-HEAD &
Head-CACs Above
&above authorities Branches not linked to RAH: Second
4-wheeler loans by the RSA.
3rd & subsequent 4-Wheeler vehicle
Loan (excluding 2-wheeler) to individuals
- RO-Head-CACs & above authorities.

Retail Loan Products Canara Institute of Bank Management Page 13

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA Two Wheelers 85% (for salaried)/ 75% (Other For Salaried: Repayment– 60 EMI PC NF965
VEHICLE Purchase of brand than salary individual) of the Minimum gross salary of Rs. 1.75 lacs Margin – 15% for existing 0.25 % NF928,373,370,371
new two wheeler total value (inclusive of invoice p.a. & 20 % for new customer Min -250
value, life tax, registration Max Rs.1000 - RTO Form in
Two wheeler only
charges, ins. premium and other NTH 35% (May be relaxed at 25% by (SALARIED) duplicate-
accessories) OR to the extent of RSA). 25% for existing & 35 % for DC 29/30/35
66/2020, 50% of their annual net income in new customer (NON Nil receipt, invoice
Other Than Salary:
142/2020, the immediate previous year, SALARIED CLASS) NACHs/ECS
Annual Income: Rs 2.00 lacs.
whichever is less to the existing Inspection mandates are to be
143/2020, However, in deserving cases, the
customer having one year compulsorily
843/2020, sanctioning authority may waive Salary tie up or salary Yes
satisfactory dealings. obtained Wherever
75/2021, production of ITAO/ITR if satisfied Mandate waiver required
Margin: mandatory salary
159/2021, about the credit-worthiness / from RO/CO
Salaried: 15% tie up is waived
616/2021, 80%(for salaried) & 65 % (Other repayment capacity of the
700/2021 (Existing
than salary individual) OR to the borrower. Loan can be sanctioned by Customers)
extent of 50% of their annual net DELEGATION
the RSA by the branches 20% New
income in the immediate previous Pensioners- Net Take Home should without referring to Customers Respective
year, whichever is less and other be 50%. embargo on NPA level Sanctioning
details as above for new branch under this Other than Authority,
customer. Scheme. Salaried including
Salary Tie-up to be ensured for loans Based on merits, the RSA Individual authorities at
to Salaried Class. However, may permit transfer of 25% Existing ROs/COs/HO UPTO
The accessories can be financed wherever salary tie-up is not
loan proceeds along with Customers MODERATE RISK.
up to maximum of 1000/- only. feasible, the same can be waived margin money either by 35% New Security:
selectively by DM/AGM RAH OR way of DD/RTGS/ NEFT customers. Hypothecation of
DM/AGM-RO-CAC or DM/AGMCO-CAC directly to Vehicle Dealer vehicle purchased.
in respect of proposals falling up to against Invoice with
their powers. Suitable Guarantor
proper confirmation.
good for the
amount.
SA at his discretion
may waive on basis
of merit.

Retail Loan Products Canara Institute of Bank Management Page 14

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA GREEN Purchase of New Quantum: As per the All Individual borrowers/ Repayment: Maximum PC Hypothecation of
WHEELS Electrical Four scheme guidelines of Canara professionals/ reputed firms/ 84 EMI 0.25 % the Vehicle
(ELECTRIC Wheeler for companies & agriculturists. Min Rs 1000 proposed to be
VEHICLE) personal /non- Vehicle Loan (Four-Wheelers) Max Rs.5000 purchased.
commercial Margin:
Comprehensive
375/2022, purpose. Minimum income of Rs.3.00 lakhs Up to Rs.25.00 lakh – 15% DC
Product Code: Canara Vehicle – insurance for the
496/2022 p.a. as per the latest income of Above Rs.25.00 lakh – 25% Nil
603 full value of the
Salaried/ Non-salaried
Canara Vehicle to Agriculturist - vehicle with Bank
class; Inspection
636 clause.
Agriculturist: Net Annual Income of Yes
Scheme Code– 111000 applicant and/or co-applicant NF965
together should be a minimum of NF928,373,370,371
Rs.4.00 lakhs. - RTO Form in
duplicate-
29/30/35
- RTO Form 20/34
to be used for
Hypothecation
- receipt, invoice.

Retail Loan Products Canara Institute of Bank Management Page 15

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA Purchase of Four Quantum: As per the Agriculturists owning and cultivating REPAYMENT: PC Loans upto Rs. 10
VEHICLE LOAN wheelers (LMVs) scheme guidelines of Canara 5 acres of irrigated lands/10 acres of New Vehicle 84 Month 0.25 % Lacs-latest
TO of all types i.e., dry lands (for - Dairy and Allied Min Rs 1000 ITR/Income
AGRICULTURIST both Brand New & Vehicle Loan (Four-Wheelers) activity Farmers; Planters; Old Vehicle - future life Max Rs.5000
Preowned by Horticulturists-min. gross annual of vehicle or 60 months Certificate by the
income is Rs. 4.00 lacs) whichever is less. DC Tahsildar/ Revenue
agriculturists
whose major Old vehicle-40% [new as well as Nil Officer/ competent
Annual Income is existing] Rs.15.00 lacs (minimum Satisfactory dealings with us for the authority
Periodicity: upon the
from Agri margin of 40%)/Max One year’s last two years –waiver (for new activity / income stream Inspection
annual income customer or new branches not / cropping pattern. Yes Loans >Rs. 10 Lacs:
Interest demanded at ITR compulsory
completed 2 years) by RO Head CAC
Accessories can be financed M/Q/HLY/YLY (dairy and
allied activity farmers ECS mandate
limited up to Rs 25,000/- amount
NTH-40% of gross annual income min demand will be raised
of Rs. 1.50 lacs/-p.a. CGM/GM-HO- monthly). NF965
CAC & above-25% with a minimum of NF928,373,370,371
Rs.1.00 p.a - RTO Form in
SA is empowered to
duplicate-
disburse of vehicle loan
29/30/35
proceeds by way of
NEFT/RTGS to the dealers - receipt, invoice,
in exceptional cases . Rating Score Card
–Canara Retail
Grade (HO Cir
825/2021)

Retail Loan Products Canara Institute of Bank Management Page 16

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA SOLAR For purchase & 80% of cost of Solar System Individuals, Institutions & MARGIN PC Hypothecation of
installation of Interest Subsidy on upfront basis - Commercial establishments. 20% of project cost for Domestic assets.
Solar off grid To be claimed quarterly released Security: solar water heaters (10% Users Suitable co-
Priority/Non (Photovoltaic and a) Hypothecation of the equipment’s obligation good for
Priority by IREDA for PVS from 0.1%
Thermal) system to be purchased out of the loan. the loan amount OR
with necessary b) Suitable co-obligation good for 15% on the cost of the Min Rs.100 adequate approved
Submit the claim within 10 days system including
499/2022 accessories. from the completion of the the loan amount OR adequate Max Rs.250 securities equal to
approved securities equal to the accessories. the loan amount as
Finance only quarter. Others – as collateral.
those systems loan amount as collateral.
c) In case of industrial / commercial applicable to NF 965
which are from Loans upto Rs. 50,000/-: No SUBSIDY –Front ended Term Loan
approved insurance is to be insisted. borrowers, collateral securities such Subsidy. APP 24 & 25 of
manufacturers as immovable DC Nil Retail Manual
Properties taken, if any should be Inspection CHA Agreement for
Subsidy released Loans above Rs.50,000/- :
extended for this loan also. REPAY - 3 to 5 years with Yes higher amount of
by Ministry of New Insurance should be obtained
Salaried: min monthly NTH- 25% of 3 months repayment loan
and Renewable gross salary OR min. Rs. 2000/- holiday
Energy Sources
(MNRE) Professionals: Rs.50,000/- NET
annual income

CANARA To meet financial Min: Rs.5 lacs & Resident MARGIN – 10 to 55 % on PC SECURITY – EMT of
JEEVAN needs of senior Max: against Flat- 25 lakh and Senior citizen above 60 Years type of security & Age 0.25 % Flat/House.
citizen –self against House 50 lakh. Loan should be in the joint names REPAYMENT - bank shall Min --NA NF 964,
Non-Priority occupied of the borrower and his spouse make the periodical Max Rs.10000 Loan agreement,
271/2016 residential DOP- CO Head-CAC. (>55yrs) payments upto a period of Mortgage, a will,
property House: 15 years. DC App 14/15/16 of
(Age>60years) 60-70 yrs-70% of value Residual life of the property > 20yrs. The repayment of the 100/- Per lac Retail Manual. EMT-
71-75yrs -80% loan takes place only on Min 1000/- NF461/462
above 75 years 90% Age of the flat < 10 yrs. the death of the surviving Max – 25000/-
Flat: No Loans against Ancestral Property borrower (i.e. spouse).
Depending upon age of the flat, The borrower(s) will have Inspection LSR & Valuation
from 45% to 75%. option to prepay the loan Yes IT Clearance
One time lump sum payment, RIGHT OF RESCISSION: Certificate at the
not more than 20% of the eligible 3 business day time of sanction, IT
loan amount. Return/ITAO
Monthly/Qtly installments. Property tax paid
receipts.

Retail Loan Products Canara Institute of Bank Management Page 17

 CANARA For non-business 50% on the value of the property To individuals with satisfactory MARGIN – 50% PC Latest salary
MORTGAGE purpose only, for as per the valuation report or dealings and non-Customer, well REPAYMENT- 120 Months 0.50 % certificate / ITR
meeting any Rs 7.50 Cr,. introduced and with good OPL/ by RSA/Upto 144 months Min --5000 and also the
unforeseen market report; NRI customers, with by NHA/ Max--No Limit financial
Non Priority expenses, urgent OR resident close relatives DC statements duly
Upto 180 months (15 by
166/2020, personal and No loans under the scheme to Circle Head CO-CAC 100/- Per lac certified by CA.
142/2020, medical needs i)Salaried Class: Low/Normal Companies /Firms/ Business Min 1000/- Copy of sanctioned
75/2021, etc. CRG Grade-96 times last drawn establishments/Trusts/ HUFs NTH of min 20% or Rs Max –25000/ plan, completion
Not for Inspection
159/2021, monthly gross salary. No Canara Mortgage Loan should be 20000 pm whichever is Yes
certificate
581/2022 speculative Non-salaried: Low/Normal CRG permitted against the property higher Proof of existing
purpose. grade:8 times of cash accruals. which is already mortgaged for any Security- EMT of property income to be
The existing
NTH: 35% or Rs. 30000/- other Credit facility. having clear marketable
OD facilities
obtained, verified
Employees of our whichever is higher. after title. & satisfied.
Exception: permitted by
bank and other meeting the existing and Properties in the name of e-Syndicate
Banks (PSU/ proposed EMIs. Canara Mortgage Loan can be Company/ Prop firm,
permitted against the property Bank will NF964-Application
Private/ Foreign/ ii) Salaried Class : Medium/High which is already mortgaged under Partnership Firm/ LLP are continue and
Co-Op banks) are Rating - Canara
CRG Grade-84 times last drawn any Retail Lending Scheme OR eligible subject to Corp 10% Drawing Retail Grade (HO
also eligible. monthly gross salary’ Guarantee of respective Power will be
Sanctioning vice-versa, subject to the scheme Comp/ Firm Cir 825/2021)
Non Salaried Class; Medium/high guidelines. In case of existing EL - Residential/Commercial reduced every
Authority for staff year till its Term Loan
advances will be CRG grade : 7 times cash 200% of liability for residual value. If open plot of land can also Agreement with
accruals ( Average of the existing Retail Loan by Higher be considered where closure
same as modification
applicable to preceding 3 yrs during which the Authority than CM on same property security having well
loan is desired. by higher authority only (Ho Cir demarcated boundaries Mortgage related
customer. documents
NTH: 30% or Rs.25000/- 75/2021) and acquired by the
whichever is higher after Sanctioning Powers borrower from Govt Dev NF 461/462
Minimum Age of meeting the existing and Authority/ CACs DOP Authorities or Industrial
the Applicant: 18 proposed EMIs. Rs in Lacs Development Authorities
years Head of RAH 200
like DDA, HUDA, LDA,
Whichever is less. AGM-RO-CAC/ AGM- 300
CO-CAC RIICCO etc
DGM–RO-CAC 400
DGM-CO-CAC 400
GM – CO-CAC 500
CGM –CO-CAC 600
CGM/GM-HO-CAC 750*
*Canara Mortgage proposal up to Rs.750lacs
falling under HO powers shall be processed by
Retail Assets Wing nd beyond Rs.750 lacs shall
be processed by respective Corporate Credit
Wing at HO

Retail Loan Products Canara Institute of Bank Management Page 18

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA RENT Scheme for Nature of Loan- Term Loan Owners of property rented to PSU, MARGIN PC -NF964
financing against Secured. Max 5 Crore State, Central, FI, Banks, MNC, Cos 25% of Gross Rent 1.00 % TL Agreement
rent receivables. If Property in SU / Rural - Rented to Min –Rs 5000 modified, Appx-20,
Non Priority our Bank Relaxation in Margin- Max -No Limit
Loan to Owners, 75% of the net Rent receivables 21 of RL Manual.
to meet business for the unexpired lease period RO/CO Head can permit Property ED CAC and Board CAC
leased out to non-corporate. upto 85% in respect of DC Tripartite Agg/POA
360/2021, needs, genuine less TDS and Advance Rent and
personal needs tax if any. Satisfactory dealings and non- proposals under DOP 100/- Per lac . Rating Score
613/2022, customers to be with OPL and REPAY upto 120 months Min --1000/- Card –Canara Retail
680/2022 Sanctioning Market Survey or unexpired lease period Max – 25000/- Grade (HO Cir
Power: CORPORATE BORROWERS In case the tenant is a Corporate, whichever is earlier. 825/2021)
For arriving the eligible loan
 CM in VLB, DM -
quantum, the unexpired period of
minimum external rating of the Longer repayment period Inspection Mortgage related
RO/CO-CAC - 100 tenant should be BBB and above. upto144 months or Yes documents
lease i.e. certain and/ or option
Lac unexpired lease period NF461/462
period or up to 15 years CORPORATE BORROWERS
 RAH Head, AGM for Navratna, PSUs, AAA EMT of leased
whichever is less shall be Mortgage/Canara Rent proposal
in ELB/RO- rated reputed company property-100% of
considered, irrespective of the beyond Rs. 5 Crore falling under HO
CAC/CO-CAC 200 may be permitted by loan (Metro &
rating taking into account the powers shall be processed by the
Lakh. CGM/GM HO CAC and Urban) 125% (Rural
following: respective Credit Wings at HO
 DGM-RO- above authorities. and Semi urban).
CAC/DGM CO CAC Value of alternative
a) In respect of urban / metro GST to be deducted unless otherwise CORPORATE
/DGM Heading property - 125%
areas, collateral by way of EMT of lessee brings it on record that they BORROWERS:
Branch -300 Lacs
property leased out shall cover will pay over and above rent. Distress sale value
CGM/GM-CO-CAC- Upto 180 months or
133% of loan amount besides of the property
500 Lacs unexpired lease period
ensuring receivables. (equivalent to 100%
No power to b) In respect of rural / semi urban Repayment can be by / 125% of the loan
sanction Canara areas, collateral by way of EMT of way of EMI/ballooning/ amount as the case
rent loans at property leased out shall cover structured installments
may be)
Branches. 150% of loan amount besides Entire rent to be made
payable to Bank. Rent Third party
Loans above Rs.5 ensuring receivables. property
received in excess of EMI
cr is to be
shall be credited to Assignment of lease
sanctioned under
borrower’s operative rental
“Canara LRD”
account
scheme. Exceptional case –
EMT can be waived
for loans upto Rs.2
lacs

Retail Loan Products Canara Institute of Bank Management Page 19

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA SITE Purchase of 4 years gross salary / gross annual Customer with satisfactory dealings. MARGIN - PC EMT of the
Code- 620 Residential income OR 75% of the cost of the Age upto 60 yrs. Vacant plots by Govt. 0.50 % Residential site
Housing Sites site/guideline value (whichever is Development Authorities: Min –Rs 1500 proposed to be
less) NRIs eligible on terms of customer. 30% Max Rs.10000 purchased
Non Priority
The land, plots of Employee eligible with 40% NTH DC
Government Project Cost
compulsory. Other Vacant Plots: 50% 100/- Per lac . Rating Score
142/2020, Development consisting of site cost as shown in Min --1000/- Card –Canara Retail
680/2022 Authorities land the allotment letter plus Salaried Class- Max – 25000/- Grade (HO Cir
such as DDA, development charges, if Confirmed and minimum NTH of 40% NTH 825/2021)
HUDA etc. any, not exceeding 10% of the site Salaried class -40% Inspection
directly from cost Non-salaried class Yes
authorities or Can be permitted upto Undertaking should
under second DOP - SA Power 25% by RSA be obtained from
In business or profession- min. 3
sale. Further the Lacs the borrower for
years net annual income is Rs. 1 lac Non- Salaried Class:
plots in the Branch-in-charge- 10 Inspection construction of the
or more (ITR). Net Annual Income
colonies approved Medium Br./ Credit should be house within
Manager in adequate to meet the stipulated period
by Govt. instalments. conducted
Authorities along VLBs/ELBs net annual income is adequate to once in 6
with approved Branch-in- charge- 15 cover the loan months.
Large Branch NF964
maps and RERA REPAYMENT-
app projects CM in VLB/ELB 25 Mortgaged Doc
10 years or upto 65 years
AGM-VLB/ELB 30 NF 461/462
of age at the time of
Head of RAH/DGM 35
closure OR max period NF 981 /982
Heading Branches
permitted by allotment
AGM-RO-CAC 35 agency for construction,
DGM-RO-CAC 50 whichever is earlier.
DGM-CO-CAC/DGM 60 Eligible cases may
CO CAC CO HEAD In case of part payment of be converted to
GM/CGM-CO-CAC 75 site, repayment Housing loan.
Circle Head commence after 3 months
otherwise next month.
CGM/GM HO CAC Above
75 Lac

Retail Loan Products Canara Institute of Bank Management Page 20

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
HOUSING Purchase, 72 times of last drawn monthly Salaried (with 2 year aggregated MARGIN PC Mortgage of house
FINANCE construction, gross salary (salaried class) &6 regular and continuous service and Flat/ House New or upto 0.50 % /flat
renovation of flat times of annual gross income confirmed in the service) 10 years old Min –Rs 1500 End use to be
360/2021, and house. (Average of 3 preceding years The NHA can permit relaxation up to Upto Rs. 30 lakhs: 10% Max Rs.10000 ensured
505/2021, Takeover of annual Income for non-salaried one year. Above Rs.30 lakhs and
DC Income Proof
789/2021, Housing Loans class) by RSA - Business, Self Employed/ upto Rs.75 lakhs: -20%
794/2021 from NBFCs/HFCs Nil Agriculture income
197/2022 84 times of last drawn professionals- min period 3 yrs in Above Rs.75 lakhs - 25% can be included
Delegation- HL business (can be relaxed to one year Old Flat/ House: > 10
(other than CRE) monthly gross salary/ 7 times Inspection Business proof
of annual gross income (Average by RAH Head, RO Head CAC, AGM- Years old (irrespective of Yes
Rs in Lakhs CO-CAC) loan amount)- 25 % Salary certificate
Mgr/Sr. Mgr Small of three preceding year’s annual of past 6 months to
income– By RAH HEAD/ RO- Net Take Home Margin on basic project
Br. 10, SM/M In cost – shall not include be verified;
charge of M Br- HEAD- CAC & above authorities up 25%, subject to minimum quantum stamp duty, registration
to their delegated powers to Low TP agreement for
15, SM/Mgr in 10000/- and other documentation Flat
charge, Mgr/SM in Risk & Normal Risk customers and
should maintain 25% NTH or Rs charges; for PC upto 10 LSR, Valuation
RAH- 30 Lakh. CMs
in ELBs/VLBs- 50, 20,000/- whichever is higher NTH conditions are there according lacs-can be included Report, Checklist
AGM Br ,DM RAH after meeting the existing & to age of borrower at entry level and
not heading- 100, proposed loan EMIs. final repayment period. [Please Repayment- Maximum 30
DM/AGM RAH refer HO Cir 794/2021] [summary years
Heading ,AGM- 96 times of last drawn given in this booklet-last section] NF964,
monthly gross salary/8 times of Opting 30 years
RO/CO-CAC- 200, repayment, Age of NF 981, 982
DGM Branch/DGM annual gross income(Average of
RO-CAC- 300, three preceding year’s annual Repair & Renovation borrower up to 70 years. NF 461/462
DGM-CO-CAC-400, income by CO HEAD RO-CAC A uniform sanctioning powers of Maximum age of the NF 370 /371
DGM/GM-CO-CAC- subject to conditions of NTH upto Rs.15.00 lakhs is fixed to all borrower, within which
500, CGM/GM-HO- &property location. Circles irrespective of Metro Circles the loan should be repaid,
CAC-Above CO or others for Housing Loans sought should not exceed 75
Head CAC upto for repairs and renovation. years
1000, ED CAC
Above 1000.

Retail Loan Products Canara Institute of Bank Management Page 21

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
HOUSING Age of House/Flat-which Reimburseme In addition to the
FINANCE All Public Sector Takeover of retail loans from In case of entry age of the main is more than 20 years old nt applicant’s
contd… Banks/Private Public / Private Banks (Other borrower is less than 60 years and may be permitted by CM Circle Head income, Income of
Sector Banks than NBFCs/HFCs/ RRBs/ Co- the loan is repayable within 75 years of Branch/RAH Head and and above spouse/children/p
operative Banks) of age, the loan may be permitted above authorities. authorities at arents/ siblings
Takeover of by the RSA up to their delegated HO are may be
Housing Loans for Salaried class: SA:-Risk Gr: powers. More than 40 years-by CO authorized to Considered for
from NBFCs/HFCs upto CRG:2 –by RAH HEAD & Head CAC & above permit arriving at
/ RRBs / Co above authorities REPAYMENT PERIOD & NTH (earning reimburseme maximum loan
Operative Banks CRG: 3 -by RO HEAD CAC & above youngest borrower/legal heir who is The residual life of the nt within amount subject to
authorities joining the loan as Joint borrower) building should be at Their DOP not conditions.
Take over from Non-Salaried Class -Below Circle least 10 years more than exceeding
Army Group Head Level CAC/ Individual The repayment period in respect the repayment period end 25% of the Inspection of the
Insurance Fund Authority -NHA of Housing Loans, can be decided date loan amount house property and
Takeover of Circle Head Level CAC and based on the age of the earning Takeover from certify the
existing housing above - RSA youngest borrower /legal heir who NBFCs/HFCs (irrespective acceptability by
loan liability with is joining the loan as joint of the rating by ECAI) for The waiver of executive as
existing Top up Takeover from Regional Rural borrower, provided he/she has Salaried class the Salary specified.
loan of Retail. Banks: sufficient income to service the SA: Risk Gr: upto CRG:2 – Credit/Manda
In respect of SA: Risk Gr: upto CRG:2 EMI with maximum repayment by RAH HEAD & above te on a case to Payment of service
Retail Loans (Low/Normal –to be permitted by period up to 30 years. authorities case basis, charges to
where RO-HEAD-CAC) based on approved builders
moratorium under -CRG: 3(Moderate Risk)-to be CRG: 3 -by RO HEAD CAC merits, may or to their
COVID-19 permitted by Circle Head level & above authorities be authorized
regulatory CAC and above NBFCs/HFCs externally permitted by marketing
package has been Eligible accounts from Co- rated A & above- Non DM/AGM RAH officials- 0.25%of
availed between operative Banks may also be Salaried Class -CO Head or AGM-RO- HL amount max Rs
March 1, 2020 and permitted for takeover by Circle CAC and above CAC or AGM- 50000/-; provided
August 31, 2020, Head CAC authorities with CO-CAC min 3 HL or min
Takeover also conditions amount Rs 1 Cr is
permitted subject sanctioned
to conditions. /disbursed in same
project

Retail Loan Products Canara Institute of Bank Management Page 22

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
HOUSING Purchase, Four times of annual gross income Non Resident Indians Margin: as per HL PC Equitable mortgage
FINANCE TO Construction, site subject to Persons of Indian Origin PIO Repayment: 0.10 % by deposit of title
NRIs and construction, NTH of 40% Min –Rs 500 deeds.
repairs, minimum employment in abroad is 2 Maximum 30 years (or) Up Max Rs.10000
5 years of gross annual years to the age of 60 years Registered
renovation mortgage
salary/Income by RAH Head/RO NRI status for at least three years (the age by which the DC
Head-CAC/AGM-CO-CAC& above loan should be fully Nil Permission from
authorities repaid next higher
Jointly with residents Spouses and authority is to be
Circle Head-CO-CAC and Inspection obtained before
close relatives of NRIs above authorities can Yes putting through
very selectively permit Simple Mortgage
the following relaxations transaction/s in
upto their delegated respect of all loans
Age: Min 21- years; maximum age by powers:
which loan is to be repaid: 60 years. except
a. waive Guarantee and Agricultural
or Collateral security for Loans. (97/2020 dt
Housing loan to NRIs given 27.02.2020)
for construction of flats.
b. Repayment period up Guarantee of
to 30 years or till the suitable resident
borrower attains the age Indian acceptable
of 70 years. to Bank on case to
c. Minimum employment case basis.
abroad of 2 years to 1
year with valid job NF 964
contract/work permits.
d. NRI status from 3 years NF 981/982
to 2 years NF 461/462

Retail Loan Products Canara Institute of Bank Management Page 23

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
HOUSING LOAN Purchase of Ready Maximum eligible quantum of Agricultural lands of more than 5 Margin – as per general Processing Mortgage of
SCHEME FOR Built House/Flat loan shall be computed in the acres (Irrigated lands) / 10 acres of housing scheme Charges residential
AGRICULTURIST same way which is used for Dry lands; Moratorium period: 0.50 % property as per
Plot and Computing maximum eligible Min-Rs 1500 normal HL Scheme.
construction quantum for General Housing HLY installments: 3 Max-Rs10000
Priority Sector thereon, loans. Satisfactory dealings with us for the harvesting seasons Land Records and
Take over a/c last two years [RAH Head (for Yearly installments 2 Documentati proof of income for
mapped branches) and R.O. Head harvesting seasons on Charges: last 3 years.
Loans should not CAC (for unmapped branches) can Nil
Shall not exceed 18
be given for NTH: 25% - 40% of Net Income relax the condition] months Documentation
construction or after proposed installment as per Inspection Application- NF 964
purchase of general housing loan. Repayment to start from Yes NF 981/982
Agriculturists in Dairy farming,the immediate harvesting
houses on Agri Poultry farming, and Plantation season during which the NF 461/462
Lands
Commitments under Agricultural Crops and Horticultural produce- completion of House
Term Loans, Working Capital minimum gross annual income are /Flat take place
interest (KCC / KOD) etc shall be Rs.5.00 Lakhs. Repayment Period
considered to arrive at Net Equated monthly / half
Income. yearly / yearly max
period 30 Years.
However, it should be
ensured that the entire
loan is cleared before the
borrower / youngest of
the borrowers attains the
age of 75 years.

Retail Loan Products Canara Institute of Bank Management Page 24

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA HOME To meet domestic Loan facility Individuals aged between 18 and 70 Repayment: PC EMT of the
LOAN PLUS needs/medical 50 Lakhs years (75 Yrs) 120 EMIs or left over 0.50 % property under
expenses/ repayment period for the Min –Rs 100 Housing Loan shall
NON-PRIORITY educational Combined liability – (Housing availed Housing Loans with our Bank existing Housing Loan Max Rs.500 be continued
expenses of Loan + proposed Canara Home whichever is less
66/2020, children / Loan Plus) not exceed 75% of Satisfactory repayment of the loan DC Further EMT is to
73/2020, dependents / value of the property at the time promptly for irrespective of the 100/- Per lac be created for
845/2020 unforeseen of sanction of Housing Loan period of run with our bank with In case the borrower Min --1000/- “Canara Home
109/2023 contingencies etc other conditions. wants to pre-close the Max – 25000/- Loan Plus”.
For salaried class: housing loan liability,
24 months gross salary; NTH shall Staff of our Bank are not eligible then the liability under Inspection Release of security
not be less than 25% “Canara Home Loan Plus” Yes is only on closure
Takeover of top- For non-salaried class: LTV as applicable to HL prevailing as loan has to be got cleared of both loans.
up loan along with Two times of average three years on the date of Canara Home Loan first
Housing Loan to gross income PLus Latest tax paid
be considered Existing loan accounts of customer MARGIN: NIL receipt is to be
under Canara should be regular & standard asset obtained.
Home Loan Plus NTH shall not be less than 30 % of throughout. Gap of minimum two
scheme subject gross income at the time of years between two NF 964
to period of the sanction of HOME LOAN PLUS , OD facility under Canara HL Plus valuations Appendix-71. of
Housing Loan run including proposed loan discontinued with effect from Retail Manual
at Banks/FIs, by 07.02.2020, Hence at the time of Add EMT – App 32
calculating the renewal, the existing HL Plus -OD of Doc Manual
LTV as per facility will be charged with an
suggested additional 0.50% ROI as per their
valuation. respective CICs or can be converted
to term loan

Retail Loan Products Canara Institute of Bank Management Page 25

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
HOUSING CUM- Loan to The Scheme consists of Two Loan Loan to individuals for installation of Margin : PC Security: As
SOLAR LOAN individuals for Components Grid connected Rooftop Solar HL- As per Scheme 0.50 % applicable to
installation of Photovoltaic (PV) Equipment with Solar Loan - 20% Min –Rs 1500 Housing Loan
Roof Top Solar our Housing Loan can be sanctioned Max Rs.10000 besides the assets
1.Housing Loan Component-
Photovoltaic (PV) along with fresh Housing Loan or Rate of Interest: As created out of this
System along with Include project cost of House independently with subsisting applicable to Housing DC loan taken as
our Housing Housing Loan if the track record of Loan. Nil security by way of
Loan.(On-Grid 2. Solar Loan Component-Include the existing Housing Loan is good. hypothecation.
Facility) cost and installation of Grid REPAYMENT: Inspection
Interactive Rooftop Solar Within a maximum period Yes NF 964
Photovoltaic (PV) Equipment of 20 years or the NF 981 /982
Quantum: repayment period NF 461 /462
Housing Loan: As applicable to stipulated for Housing All other NF 370 /371
each Housing Loan variants. Loan, whichever is Undertakings
guidelines as
Solar Loan: Rs. 10.00 lacs or 20% earlier.
NTH applicable to
of HL eligible quantum
25% subject to minimum different
or
amount of Net Income Housing Loan
80% of the system cost as per
quantum shall be variants i.e.,
Proforma invoice/quotation (rate stipulated at Rs.10,000/-. those relating
including cost of accessories) If the repayment period to Security,
whichever is lower. goes beyond 70 years,
LTV,
minimum NTH shall be
retained at 40% with a Sanctioning
minimum of Rs. 10,000/- Authority etc.
p.m.

Retail Loan Products Canara Institute of Bank Management Page 26

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA HOME For funding the Type -Term Loan All Canara home loan borrowers are Repayment: For New PC Security: A
LOAN SECURE one-time eligible to opt for life insurance Housing Loans – (Min. & Nil suitable clause for
insurance Equivalent to the one time cover. Max.) general lien over
Non Priority premium for premium of life insurance to Minimum: 2 years. DC the title deed of
group secure term cover under Group secure plan of Maximum:15 years or Nil the mortgaged
150/2019, plan payable to CHOICE. Insurance coverage is available to a tenor of the HL whichever Property to be
501/2019, M/s Canara HSBC maximum of 3 joint borrowers as is less. Inspection incorporated.
66/2020 OBC Life Ins SANCTIONING AUTHORITY: for below: Nil (A suitable under
Company Ltd existing Housing Loan customers: There are 2 options for joint Existing HL accounts – taking letter as per
a. In case of branches attached to borrowers: Tenor of the CHLS is 15 Annexure-IV to be
RAHs: i. Option 1: Joint Basis years or residual tenor of obtained from
i. Respective Housing Loan ii. Option 2: Loan Share Basis the HL whichever the borrower)
Sanctioning Authority upto RAH is less.
Head. NF 965
ii. Housing Loan falls under the SUM ASSURED: Minimum: NF 991
sanctioning power of RO/CO/HO, 100% Maximum:120%
the respective RAH Head can of Housing loan
sanction. sanctioned amount or
b. Wherever branches not outstanding liability of
attached to RAHs, then the Loan amount
respective Sanctioning Authority
upto RO Head CAC. COVERAGE OF LIFE
c. In case of Delegation powers Coverage of the life and
fall under CO/HO then respective Total Permanent
RO Head CAC. Disability (TPD) of the
Canara Home Loan Secure to be borrower
sanctioned along with Housing MARGIN: NIL
Loan for all new Sanctions.

Retail Loan Products Canara Institute of Bank Management Page 27

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
RAIN WATER Installation of 75% of the estimated cost as per To individuals constructing house, Margin: 25% PC NF964/965
HARVESTING Rainwater the unit cost stipulated here- making modification of existing Disbursement: In 2-3 0.50 % NF 855
harvesting unit below: house. installment Min –Rs 1500 NF 461/462
Non Priority Plot size- up to 1500 sq.ft: Rs Repayment: 60 EMIs Max Rs.10000
57700/- Special Condition Mortgage related
142/2020 No collateral security in DC other documents
Plot size- More than 1500 sq.ft case of borrowers Nil Security: Hypo of
upto 2400 sq.ft: Rs 73000/- enjoying Synd-Saral pipeline with
(Canara Budget ,salaried Inspection barrel, filter etc.
Plot size- More than 2400sq.ft class) , even though they Yes 2. Continuation of
upto 5000 sq.ft: Rs 82000/- have housing loans with mortgage of
other Banks or FIs subject residential
Plot size- More than 5000 sq.ft: to production of property in the
Rs 185000/ regularity certificate case of existing
from concerned Bank /FI housing loan
borrowers.

CANARA For acquiring a Maximum quantum of loan: Individual house hold Income in Repayment: PC Mortgage of
KUTEER residential site For Household income of Up to Rural, Urban, Metro areas and Not exceeding 30 years 0.50 % residential site/
and constructing Rs.1,00,000/-p.a : Rs 5.00 Lac members of Self Help Groups or 75 years of age of the Min –Rs 1500 property
Non Priority a house thereon. For Household income of above SUBSIDY. borrower whichever is Max Rs.10000
142/2020 Acquisition and Rs. 1,00,000/- & up to Rs. earlier NF 964
purchase of new 3,00,000/-p.a. : Rs 10.00 lacs Margin & other term & conditions as Security: -Mortgage of DC NF 981/982
or old dwelling Components of Project Cost per HL Scheme Residential Nil NF 461/462
units. Cost of Land/Flat or Construction Site/Property, Third And other
Construction of Cost NTH Party guarantee waived. Inspection mortgage related
house on already Cost of Installing Solar Lighting Shall not fall below 60% of Gross Eligible loans in Urban Yes documents
owned Site / plot. System & Cost of ASTRA annual income (Cutback not areas shall be covered
If loan is covered Smokeless Choola. exceeding 40% of Gross annual under Credit Risk
under Govt. income) Guarantee Fund Scheme
sponsored for Low Income Housing
Scheme, subsidy (CRGFS) of NHB
will be a part of
the project cost.

Retail Loan Products Canara Institute of Bank Management Page 28

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
CANARA HOME For purchase of Minimum: Rs. 20 Lakh Repayment: PC Mortgage of
LOAN SUPER House /flat /plot Maximum: No upper limit. Not Exceeding 30 years of repayment (Including repayment 0.40 % Property
GAIN (CASA) of land. holiday) or 75 years of age of the borrower whichever is earlier. Min –Rs 2000
Construction/ext Max Rs.50000 NF 964
142/2020 ension/repair/ren Eligible for Benefit of Interest: NF 981/982
ovation of new/ The extant guidelines applicable i. a) Amount of loan must have fully disbursed AND DC Mortgage related
second hand to Housing Loan Scheme of bank, b) Servicing of 1st EMI fallen due as per sanction terms as on the Nil documents
residential flat including those for interest rate, date of linkage.
/house margin, repayment, penal ii. The rate of interest applicable to the Saving Account will be Inspection In addition to
interest, pre-closure penalty configured as zero. Yes existing housing
Facility shall be etc., shall also be applicable to iii. The Bank will calculate Home Loan interest on the loan loan Agreement,
made available to Loans sanctioned under “Canara outstanding minus balance in the linked Saving Account. Branch shall obtain
new as well as Home Loan Super Gain (CASA) iv. Servicing of interest during moratorium period is applicable an additional
existing Home Scheme” facility. as per the Housing Loan Scheme Guidelines. Agreement for
Loan (sanctioned Canara Home Loan Super Gain (CASA) shall be sanctioned as a linking CASA
/ outstanding Term Loan and linked with a new CASA product account (Saving Account (Saving
amount) of Bank Account) opened for the same customer. The rate of Bank Account) to
Rs.20.00 lakhs Interest is charged on net balance interest applicable to the saving account will be configured as Canara Home Loan
and above. i.e. balance in Term Loan minus Zero. The customers will have to remit the Equated Monthly Super Gain (CASA)
balance in linked Saving Account Installments (EMIs) through linked saving account only. The loan account
with monthly rests. surplus amount parked in the linked Saving Account will be (Format for
available for withdrawal. additional
Any credit balance available in the linked saving account at the agreement to be
end of the day will be considered as advance payment made in obtained as per
linked home loan account. Consequently, the Borrower will get Annexure-I).
the interest benefit in housing loan to the extent of balance
available in the Saving Account at the end of the day.

Retail Loan Products Canara Institute of Bank Management Page 29

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
Basic and Higher Need based/ No Max Limit -Indian National /NRI /OCI & PIO, - Margin - •NIL- for loan Upto Rs.7.50 lakhs
VIDYA SAGAR Education Top-up may be considered Education Loans can be extended to Up to Rs 4 lakhs – NIL amount upto – no security;
EDUCATION Part time course Rejection with concurrence of Non Resident Indians (NRIs), OCI/PIO Above Rs 4 lakhs - 7.5 Lakhs CGFSEL cover;
LOAN NHA, Category for pursuing studies in India- 5%, Abroad – 15% (Domestic & above 7.5 lacs –
Research work India only Moratorium Holiday- Abroad) •0.5% 100% collateral
•Amount for caution money,
Job oriented
building fund/refundable deposit
-For job oriented courses Uniform moratorium of Min Rs. 1000 security
specialized prog. -Educational Loan is given for an Course period +1 Year. and Max Rs. Assignment of
should not exceed 10% of tuition individual and not for family as a 10000/- For future income;
89/2021, Inland & Abroad fee. unit. Loan amount Jointly with
653/2021, Meritorious •Amount for Other expenses like -No Service Area norms Repayment Period more than 7.5 parents/Guardian
801/2021, Student purchase of -Employed Persons eligible Lakhs
45/2022, books/uniform/equipment/ EMI for 15 yrs
Merit Based -Management quota student eligible (Domestic & If already
71/2022, Selection- instruments, purchase of -No Min / Max Age Priority Sector Abroad) mortgaged,
Common Entrance computer and/or any other -0.50% Interest Concession for Girls Loans to individuals for •No service Unencumbered
test Marks in expenses like academic and -0.50% Interest Concession for educational purposes, Charge for should be 100% of
Qualifying Exam maintenance fees, study tours, Prompt Serving Interest monthly including vocational wards of our exposure (If
Gen-60%; SC/ST- project work, thesis, exchange during moratorium Period. courses sanctioned upto employee/ex- with other bank, it
50%, Girls-50%, programme etc. should not -Interest Subsidy applicable Rs. 20 lakh employee should be on
Second loan & exceed 20% of tuition fee. -Security norms for EL to where they Second Charge
subsequent loan NRI/OCB/PIO- Co borrower ship of Vidya Suraksha Yojana become joint basis)
for higher studies • Maximum cap of 20% on close relative irrespective of amount (Insurance Product for EL) borrower
expenses other than tuition fee
permitted
may be relaxed on case to case
and collateral security. (HO Cir Life Cover upto 120% of Documents Agri-Land subject
DOP 545/2020) loan amount, max Rs.50 NF 1011, NF to local laws.
RAH linked basis and clearance for the same EL can be apply online to any three 589, NF 440 Management
shall be obtained from CGM/GM- Lakhs.
branches- all EL Banks in the common application 25% of the premium cost NF 855, NF Quota
above Rs. 7.50 HO-CAC as a pre disbursement format designed by IBA through the 368. NF Add Security norms
borne by the Bank.
lakhs including condition based on the VLP portal i.e. 461/462, NF Loan to employed
Vidya Turant to recommendation from circle. www.vidyalakshmi.co.in. 370/371 Person – Add
be sanctioned by Subsidy Agg Security Norms.
RAH Head & Undertaking
above authorities Letter
RAH Head (DM)-
Rs. 125 lakhs
RAH (AGM)-Rs.250
lacs

Retail Loan Products Canara Institute of Bank Management Page 30

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
To assist the Maximum eligible amount would Indian National Students who Margin: NIL to the extent PC: Nil Security: NIL to the
VIDYA SAHAY needy for Down be Rs.1 Lakh or initial appeared in CET and selected for of bridge loan amount. extent of bridge
BRIDGE LOAN payment payment as proposed by the CET counseling. DC: Nil loan amount.
SCHEME UNDER to be made to Authorities whichever is less Students should have cleared the Rate of interest as Documentation
EDUCATION CET/Counseling DOP- As app to Term Loan previous qualifying exam. applicable to EL The As applicable to
LOAN Authorities at the designated DPN Loans.
time of Treated as EL – Priority SB account with any Public Sector DRI rate to those who branch has to
selection/counsel Branches should initiate Bank may also be accepted to ensure qualify DRI norms. notify on the Documents to be
180/2020, ing necessary recovery steps in case KYC compliance back of the DD executed by the
89/2021 the student, on Letter of undertaking to be signed Repayment: Bridge loan that the student borrower
availing the said loan, does not by the student and parent is to be cleared after amount and parents as
come forward to repay the loan /guarantor for clearance of the sanction of regular pertains to applicable to EL
amount to the liability. Education Loans. the loan Scheme
Bank on account of forfeiture of proceeds
admission with the CET obtained from
Authorities/identified Institution Canara Bank
or not approaching the Bank for
repayment.

Retail Loan Products Canara Institute of Bank Management Page 31

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
VIDYA TURANT Students pursuing Quantum of Finance:  Indian National/NRI/OCB Margin: Nil Upfront / Processing Fee: Nil
EDUCATION their higher Institutions Limit  Cleared previous qualifying exam Scholarship/ assistantship Documentation: As applicable to
LOAN studies in reputed eligible and selected through Entrance to be included in margin. Education loans
institutions viz., Test No Security up to loan amount
190/2022, Ist level IIMs/ A Students of Up to No further concession of prescribed under Vidya Turant
498/2022, IITs/ NITs/ IIMs as per Rs. 50 lacs. 0.50% to Girl Students, Assignment of future income of the
772/2022 IISc/ISB Circular Subsidy and for prompt servicing student.
(Hyderabad& CSIS -Interest subsidy scheme of interest is available as a) IIMs, ISBs& Management
Mohali) & other B Students of Up to applicable as per norms. applicable for regular Institutes:
reputed ISB, Rs. 40 lacs. Education loan Scheme With or without Co Obligation
institutes. Hyderabad Rev ROI- RLLR-0.65 (IC/646/2023).
IISc BENGALURU & Mohali Laptop Scheme Repayment Holiday Concessional ROI is applicable till
Upto 04.08.2027 available at all designated branches one year after completion course period.
for PG/PhD courses who are getting of course After completion of course the
scholarship during study period Prevailing ROI as applicable in Vidya
C All other Up to Repayment Period Turant.
Max loan Rs 1.00 lacs, without
institutions Rs. 30 lacs. margin, insurance waived, EMI for 15 yrs Mandatory life insurance cover of
other than Repayment max -24 EMI fixed as loan Prepayment penalty –Nil the student borrower under Vidya
A& B to be cleared before completion of for prepayment of loan Suraksha Yojana), the insurance
course. any time during the premium can be included in EL
Education loans sanctioned up to repayment period Project Cost.
limit of Rs.7.50 lacs sanctioned Delegation: Loan upto Rs. 7.5 lacs A time period of 3 months is
under Vidya Turant schemes are only to be sanctioned at branch permitted from the date of first
also eligible for coverage under level, above Rs. 7.50 lacs to be disbursement to execute the Joint
CGFSEL scheme. Premium will be sanctioned at RAH only for linked borrower agreement without any
borne by bank. branches. addition ROI.
b) Other than IIMs, ISBs &
Management institutes
Permitted 3 months’ time from the
date of first disbursement to
execute Joint borrower Agg

Retail Loan Products Canara Institute of Bank Management Page 32

SCHEME PURPOSE QUANTUM TO WHOM TERMS PROCESSING SECURITY/DOCUM
CHARGES ENTATION
IBA SKILL LOAN Providing a loan Rs. 5,000/- to Rs. 150,000/- Student should be an Indian National MARGIN: Nil PC: Nil No collateral or
SCHEME facility to based on sector & NSQF level having completed 10th Standard MORATORIUM PERIOD: third party
individuals who Expenses Covered DC:Nil guarantee will be
intend to take up As specified by the enrolling as per Courses of duration up to taken.
Priority Sector skill development Tuition / course fee NSQF 1 year: Up to 6 months CGFSSD
180/2020, courses. Any other reasonable expenditure from the completion of Guarantee Cover
found necessary for completion of Training Institute the course
89/2021
the course The Government of India / State Courses of duration above Parent as joint
Services of Bank Mitra may be Governments may, from time to 1 year: 12 months from borrower
used by the Banks/MFIs to time, notify institutes/ organizations the completion of the
popularize the scheme. for the purpose. course Minor-parent
Simple interest will be charged Training Course executes document
during the study period and upto REPAYMENT:
Courses aligned to NSQF shall be & Letter of
commencement of repayment. Loans upto Rs. 50,000 - acceptance/ratific-
covered by the Skill Loan. Upto 3 years ation from him /
There is no minimum course Loans between Rs. 50,000 her upon attaining
duration. to 1 lakh - Upto 5 years majority.
Minimum Age: no specific restriction Loans above Rs. 1 lakh - Documentation
Upto 7 years NF 1012 application
Total amount paid by the NF 481
student during the
PAN CARD
moratorium period should
not exceed 10% of the AADHAR CARD
total course fee.

Retail Loan Products Canara Institute of Bank Management Page 33

 ABROAD Educational loan Above Rs.7.50 Lakhs Student of Indian National holding Margin: Collater Applic Insurance: Life
EDUCATION to The students valid passport. 10% of Loan al able cover and term
Collateral Eligible loan
LOAN FROM pursuing Master Student should have secured amount. Margin may security proce insurance can be
coverage quantum
SELECT degree for abroad admission from the select be brought in year coverag ssing extended to both
UNIVERSITIES studies from 100% & above Min 7.50lakh, institution. on year basis as and e charg student & Co-
selected Top 50 Max no cap Student with *minimum score in when disbursements es applicant.
Ranked (as per SAT, ACT, GMAT & GRE. are made on a pro 100% & 0.50% Insurance
442/2022 Universities project cost) *The Minimum competitive exam rata basis. premium may be
above of the
/Institutions. Less than Max. Rs.100 scores are stipulated as below, sancti included along
100%. Lakh SAT- 1250 & above. Moratorium Period: oned with project cost.
Courses Eligible: ACT- 26 & above. Course period + 1 limit,
Master Degree Collateral security linked to Collateral
GMAT year, in case of Max
under STEM delegation of powers. Security:
GRE-300 & above. student secured job Rs.100
(Science, Delegat Collate Rate of GMAT-650 & above. immediately after 00/- Collateral Security
Technical, ion of ral Interest completion of < than 0.50% shall be in the
Engineering and Powers securit Credit Risk: Two CICs of Borrower & course then 100% of the form of Residential
Management) y Co borrowers. repayment may be sancti / Commercial
courses. coverag Borrowers up to CS:3 moderate risk started earlier. oned Land & Building
e only to be considered. limit,
RAH 100% & RLLR+1.6 Max.
Head above 0% Rs.200
00/-
Circle 75% & RLLR+1.8
Head- above 5%
CAC (less
than
100%)
CGM/G 50% & RLLR+2.1
M-HO- above 0%
CAC (less
than
75%.)
RAH head & above authorities up
to their delegated powers are
permitted to sanction the loans.
No powers are vested with
Branches

Retail Loan Products Canara Institute of Bank Management Page 34

 TIME NORMS FOR RETAIL LOAN APPLICATIONS

Sl. No. Nature of Credit facilities Time Norms*

Sanctions at Branch/ RAH Sanctions at Circle Sanctions at HO

1 HOUSING LOANS UPTO 21 days 30 days 6 to 8 weeks

RS. 25 LACS

2 HOUSING LOANS ABOVE 30 days 45 days 8 to 9 weeks

RS. 25 LACS

3 CANARA RENT NA 45 days 8 to 9 weeks

4 CANARA MORTGAGE/ OTHER NA 45 days 8 to 9 weeks

MORTGAGE BASED LOANS

5 CANARA JEEVAN NA 30 days NA

6 CANARA VEHICLE 7 days 15 days 2 to 3 weeks

7 CANARA BUDGET 7 days 15 days 2 to 3 weeks

8 TEACHERS’ LOAN 7 days 15 days 2 to 3 weeks

* Number of working days/weeks from the date of submission of all required documents.

Retail Loan Products Canara Institute of Bank Management Page 35

 CHARGES FOR RETAIL: PROCESSING & DOCUMENTATION CHARGES
No Scheme Processing Charges w.e.f. 02.04.2020 Documentation Charges
(Ho Cir 50/2021, 663/2022)GST Extra
% of loan amount Minimum Maximum
(Rs.) (Rs.)
1. Housing Loan 0.50% 1500 10000 Nil
2. HL for Agriculturist 0.50% 1500 10000 Nil
3. Housing Finance For NRIS 0.10% 500 10000 Nil
4. Housing Loan –Canara Kuteer 0.50% 1500 10000 Nil
5. HL –CRE 0.50% 1500 10000 Nil
6. Canara Home Loan-Super Gain 0.40% 2000 50000 Nil
7. Canara Vehicle (4 Wheeler) 0.25% 1000 5000 Nil
8. Canara Vehicle (2 Wheeler) 0.25% 250 1000 Nil
9. Canara Vehicle Loan For Agriculturists 0.25% 1000/- 5000/- Nil
10. Canara Budget 0.50% 1000 5000 Nil
11. Canara Rent 1.00% 5000 No Rs 100/- per lakh (Min Rs
Maximum 1000/- Max 25000/-)
12. Canara Mortgage 0.50% 5000 No Rs 100/- per lakh (Min Rs
Maximum 1000/- Max 25000/-)
13. Canara Cash 0.10 % 100 250 Nil
14. Teacher's Loan 1.00 50 No Nil
Maximum
15. Swarna Loan/ Swarna overdraft 0.50% 500 5000 Nil
(Swarna Express) @50 % of applicable Proc charges
16. Canara Site 0.50% 1500 10000 Rs 100/- per lakh (Min Rs
1000/- Max 25000/-)
17. Canara Jeevan 0.25% NA 10000 Rs 100/- per lakh (Min Rs
1000/- Max 25000/-)
18. Canara Solar Domestic Users 0.10 % 100 250 Nil
All others Upfront fees as applicable to term loan Nil
19. Canara Pension Nil Nil Nil Nil
20. Home Loan Plus 0.50 100 500 Rs 100/- per lakh (Min Rs
1000/- Max 25000/-)
21. Rain Water Harvesting 0.50% 1500 10000 Nil
22. Housing cum Solar Loan (with grid connected) 0.50% 1500 10000 Nil
23. HOME LOAN SECURE NIL NIL NIL Nil

Retail Loan Products Canara Institute of Bank Management Page 36

24. All other personal loans including 0.50% 500 No Nil
Loan to individuals against other approved securities Maximum
25. Education Loan HO CIR 653/2021
NIL- for loan amount upto 7.5 Lakhs (Domestic & Abroad Studies)
No service Charge for wards of employee/ex-employee where they become
joint borrower
NIL- loan under Vidya Turant Scheme.
0.5% Min Rs. 1000 and Max Rs. 10000/- For Loan amount more than 7.5 Lakhs
(Domestic & Abroad Studies)

TRACK THE LENDING RATE

HO Circular Gist of Circular Rate Effective date
501/2019 Introduction of RLLR for Retail & MSME 8.30% 01.10.2019
550/2019 RLLR -Clarification / FAQ
563/2019 Reduction in RLLR - 0.25 % 8.05% 07.11.2019
265/2020 Reduction in RLLR -0.75 % 7.30% 07.04.2020
437/2020 RLLR w e f 07/06/2020 (reduction @0.40%) 6.90% 07.06.2020
853/2020 MCLR w e f 07/11/2020 (reduction @0.05%) 7.35% 07.11.2020
660/2021 MCLR w e f 07/10/2021 (reduction @0.10%) 7.25% 07.10.2021
307/2022 RLLR w e f 07/05/2022 7.30% 07.05.2022
307/2022 MCLR w e f 07/05/2022 7.35% 07.05.2022
382/2022 MCLR w e f 07/06/2022 7.40% 07.06.2022
437/2022 MCLR w e f 07/07/2022 7.50% 07.07.2022
437/2022 RLLR w e f 07/07/2022 7.80% 07.07.2022
487/2022 MCLR w e f 07/08/2022 7.65% 07.08.2022
487/2022 RLLR w e f 07/08/2022 8.30% 07.08.2022
549/2022 MCLR w e f 07/09/2022 7.75% 07.09.2022
604/2022 MCLR w e f 07/10/2022 7.90% 07.10.2022
604/2022 RLLR w e f 07/10/2022 8.80% 07.10.2022
674/2022 MCLR w e f 07/11/2022 8.10% 07.11.2022
735/2022 MCLR w e f 07/12/2022 8.15% 07.12.2022
12/2023 MCLR w e f 07/01/2023 8.35% 07.01.2023
12/2023 RLLR w e f 07/01/2023 9.15% 07.01.2023
92/2023 RLLR w e f 12/02/2023 9.25% 12.02.2023
91/2023 MCLR w e f 12/02/2023 8.50% 12.02.2023
169/2023 MCLR w e f 12/03/2023 8.60% 12.03.2023
321/2023 MCLR w e f 12/04/2023 8.65% 12.04.2023
320/2023 RLLR w e f 12/04/2023 9.25% 12.04.2023
555/2023 MCLR w e f 12/07/2023 8.65% 12.07.2023
554/2023 RLLR w e f 12/07/2023 9.25% 12.07.2023

Retail Loan Products Canara Institute of Bank Management Page 37

 The RLLR for the existing loan accounts of the erstwhile Syndicate Bank shall be as under:
HO Cir Gist of Cir External Benchmark Linked Prime Rate (EBPLR)# RLLR#
Housing Loan Retail loan other than housing MSE Loan RLLR linked Loan prior to 01.10.2019
482/2023 Existing Rates* 9.25% 9.25% 9.25% 9.25%
# No fresh lending is permitted in these rate regimes. The revised rate will be applicable to accounts completing 3 years under
these regimes from 12.06.2023 onwards.
* The accounts not completing 3 years under these rate regimes will continue at existing rates.

LATEST BENCHMARK ROI HO IC: 482/2023

Interest type ROI
RLLR 9.25%
MCLR Overnight MCLR 7.90%
One-month MCLR 8.00%
Three-month MCLR 8.15%
Six -month MCLR 8.45%
One-year MCLR 8.65%
BASE RATE 8.95%
STRLLR w e f 12.06.2023 6.50%
EBLR2 w e f 12.06.2023 6.50%

RATE OF INTEREST ON RETAIL LENDING SCHEMES [Linked to RLLR]

RETAIL LENDING SCHEMES
HOUSING LOAN CREDIT RISK PREMIUM OVER REPO LINKED LENDING RATE
In Lakh Risk Grade : CRG Prime Risk Grade: CRG1 Risk Grade: CRG2 Risk Grade: CRG 3 Risk Grade: CRG4

UPTO 50 LAKHS RLLR+CRP (0.05)-0.40# RLLR+CRP (0.05)-0.25# RLLR+CRP (0.10)-0.00# RLLR+CRP (0.50)-0.00# RLLR+CRP (2.00)-0.00#

>50 LAKH TO RS 100 RLLR+CRP (0.10)-0.10# RLLR+CRP (0.50)-0.10# RLLR+CRP (2.00)-0.10#

RLLR+CRP (0.05)-0.50# RLLR+CRP (0.05)-0.35#
LAKHS

>100 LAKHS TO RS 250 RLLR+CRP (0.10)-0.20# RLLR+CRP (0.50)-0.20# RLLR+CRP (2.00)-0.20#

RLLR+CRP (0.05)-0.60# RLLR+CRP (0.05)-0.45#
LAKHS>RS 250 LAKHS

>RS 250 LAKHS RLLR+CRP (0.05)-0.70# RLLR+CRP (0.05)-0.55# RLLR+CRP (0.10)-0.30# RLLR+CRP (0.50)-0.30# RLLR+CRP (2.00)-0.30#

*5bps concession in spread for Women Borrowers #Applicable Concession in RLLR

Housing Loan includes HL to Agriculturists, NRIs, Canara Kuteer and Super Gain
Housing Loans under CRE the app rate shall be the above rate +0.25% for 3rd Unit and 0.50% for fourth and subsequent unit.

Retail Loan Products Canara Institute of Bank Management Page 38

CANARA VEHICLE Women 0.40 0.55 0.95 2.95
FOUR WHEELER Others 0.15 0.30 0.70 2.70
CANARA GREEN WHEELS Women 0.00 0.15 0.55 2.70
(4 Wheeler including
Agriculturist)
Others 0.00 0.15 0.55 2.70
Firm &Company 0.30
TWO WHEELER* Women 3.10 3.25 5.25 7.00
Others 3.15 3.30 5.30 7.00
HOME IMPROVEMENT 2.50 2.55 3.05 4.55
LOAN
HOME LOAN PLUS TERM LOAN 0.55 0.60 1.10 2.60
CANARA MORTGAGE 1.50 1.55 2.05 3.55

CANARA SITE 1.05 1.10 1.60 2.10

CANARA BUDGET Individual 4.35 4.40 4.90 6.40
Canara budget – Overdraft @0.50 % concession to woman borrower
CANARA BUDGET- With salary tie up 4.40
Special Package
Without salary tie up 5.40
TEACHERS LOAN 4.00 4.05 4.55 6.05
ALL OTHER PERSONAL LOANS (Including Loans to 5.50 5.55 6.05 7.00
Individual Against Other Approved Securities)
Without linked to Risk rating CRP OVER RLLR
Navratna PSUs, AAA rated Companies, Fortune 500 Companies, 2.10
CANARA RENT MNCs, Banks, Insurance Companies
Others 2.40
Property leased to our Bank 1.90
CANARA JEEVAN 1.60
SWARNA SCHEMES Swarna Loan, Swarna Overdraft &Swarna Express 0.45
CANARA CASH 6.55

CANARA PENSION General Public 3.30

Our Bank Retirees 2.10
CANARA HOME LOAN SECURE 0.10
CANARA SOLAR (499/2022) 0.30

Retail Loan Products Canara Institute of Bank Management Page 39

AS PER HO CIR 432/2023
 Concession in RLLR under Housing Loans (all variants) & Canara Vehicle Loans (Four Wheelers including Canara Green Wheels Agriculturists)
as per Canara Retail Grade till 30.09.2023
 Concession in RLLR as under:
a) Housing Loans (all variants) as per Canara Retail Grade in four slabs based on sanction limits (i.e. upto Rs 50.00 lacs, >50.00 lacs to Rs 1.00 Crore,
>1.00 Crore to Rs 2.50 Crore & >Rs 2.50 Crore).
b) Canara Vehicle Loans (Four Wheelers including Green Wheels & Agriculturists) as per Canara
Retail Grade in two slabs based on sanction limits i.e., loans sanctioned upto Rs 15.00 lacs and more than Rs.15.00 lacs & above.

 a. Housing Loan (all variants):

HOUSING LOAN (all variants) EFFECTIVE ROI
AMOUNT SLAB (in lakhs)
>50 LAKH TO RS 100 >100 LAKHS TO RS
CRG BAND UPTO 50 LAKHS >RS 250 LAKHS
LAKHS 250 LAKHS
8.90 8.80 8.70 8.60
CRG-PRIME # # #
RLLR+CRP (0.05)-0.40 RLLR+CRP (0.05)-0.50 RLLR+CRP (0.05)-0.60 RLLR+CRP (0.05)-0.70#
9.05 8.95 8.85 8.75
CRG-1
RLLR+CRP (0.05)-0.25# RLLR+CRP (0.05)-0.35# RLLR+CRP (0.05)-0.45# RLLR+CRP (0.05)-0.55#
9.35 9.25 9.15 9.05
CRG-2 # # #
RLLR+CRP (0.10)-0.00 RLLR+CRP (0.10)-0.10 RLLR+CRP (0.10)-0.20 RLLR+CRP (0.10)-0.30#
9.75 9.65 9.55 9.45
CRG-3
RLLR+CRP (0.50)-0.00# RLLR+CRP (0.50)-0.10# RLLR+CRP (0.50)-0.20# RLLR+CRP (0.50)-0.30#

11.25 11.15 11.05 10.95

CRG-4
RLLR+CRP (2.00)-0.00# RLLR+CRP (2.00)-0.10# RLLR+CRP (2.00)-0.20# RLLR+CRP (2.00)-0.30#

Present RLLR is 9.25%.

*5bps concession in spread for Women Borrowers
#Applicable Concession in RLLR
- For 3rd unit 0.25%, 4th and subsequent unit 0.50% extra for the proposals falling under HL-CRE.

Retail Loan Products Canara Institute of Bank Management Page 40

 b. Vehicle Loan (4 wheelers including Canara Green Wheels & Agriculturists):

CANARA VEHICLE LOAN (4-W) SCHEMES INCLUDING CANARA GREEN WHEELS VEHICLE LOAN (4-W)
AGRICULTURISTS EFFECTIVE ROI SCHEMES INCLUDING AGRCULTURISTS EFFECTIVE ROI

AMOUNT SLAB (in lakhs) AMOUNT SLAB (in lakhs)

CRG CRG
BAND UPTO 15 LAKHS >15 LAKHS BAND UPTO 15 LAKHS >15 LAKHS

CRG- 9.30 8.90 CRG- 9.15 8.80

PRIME RLLR+CRP (0.15)-0.10# RLLR+CRP (0.15)-0.50# PRIME RLLR+CRP (0.00)-0.10# RLLR+CRP (0.00)-0.45#
CRG-1 9.40 9.00 CRG-1 9.25 8.90
RLLR+CRP (0.15)-0.00# RLLR+CRP (0.15)-0.40# RLLR+CRP (0.00)-0.00# RLLR+CRP (0.00)-0.35#
CRG-2 9.55 9.15 CRG-2 9.40 9.05
RLLR+CRP (0.30)-0.00# RLLR+CRP (0.30)-0.40# RLLR+CRP (0.15)-0.00# RLLR+CRP (0.15)-0.35#
CRG-3 9.95 9.55 CRG-3 9.80 9.45
RLLR+CRP (0.70)-0.00# RLLR+CRP (0.70)-0.40# RLLR+CRP (0.55)-0.00# RLLR+CRP (0.55)-0.35#
CRG-4 11.95 11.55 CRG-4 11.95 11.50
RLLR+CRP (2.70)-0.00# RLLR+CRP (2.70)-0.40# RLLR+CRP (2.70)-0.00# RLLR+CRP (2.70)-0.45#
Present RLLR is 9.25%. Present RLLR is 9.25%.
#
*5bps concession in spread for Women Borrowers Applicable Concession in RLLR
#
Applicable Concession in RLLR

The above concession in RLLR shall be applicable only to the new loans opened and till the loan completes 3 years from the date
of the first disbursement.

RATE OF INTEREST ON EDUCATION LOAN SCHEMES [Linked to RLLR]

EDUCATION LOAN CREDIT RISK PREMIUM OVER
REPO LINKED LENDING RATE

Vidya Sagar Scheme Loan up to Rs 7.50 lacs 2.10

Retail Loan Products Canara Institute of Bank Management Page 41

 Loan above Rs 7.50 lacs 1.60

 The existing concession of 0.50% on the applicable ROI extended to girl students to continue.
 The existing concession of 0.50% for prompt servicing of interest during course period to
continue

IBA Skill Loan scheme Maximum limit is Rs 1.50 lakhs 1.60

 concession of 0.50 for prompt servicing of interest during course period

Vidya Turant scheme With Co- borrower 0.00

Without Co-borrower 0.50

Vidya Sahay scheme Maximum limit Rs 1.00 Lakhs 2.10

Vidya Shakthi Maximum limit Rs 7.50 lakhs 0.00

EL for prospective JMG Scale I Officer- 0.00

for pursuing PGDBF course

EL to the wards of the employees 0.00

Education Loan under DRI scheme Education Loan under DRI scheme will be charge at 4.00% p .a

As per extant guidelines, borrowers who switchover from MCLR to RLLR are liable to pay administrative / legal charges. The above sti pulated
administrative/legal charges have been withdrawn prospectively with effect from 24.08.2020 and borrowers are allowed to shi ft from MCLR regime to
RLLR regime without any switchover charges. (HO Cir 624/2020)

Further, wherever the employees of our Bank are sanctioned loans linked to RLLR, the Credit Risk Premium applicable to these loans will be the
same as applicable to CRG – 1 - Low Risk customers, and Canara Retail Grade report need not be drawn.

Minimum scoring for recommending ROI concession:

 To be eligible for any concession in ROI under Retail lending schemes, the minimum score of the applicant / Co- applicant shall be CRG – 3 or
better.
 In cases where Canara Retail Grade (CRG) is not applicable, to recommend / consider ROI concession under such Retail Lending schemes,
scoring under Canara Retail Grade (CRG) shall be under taken and the minimum score of the applicant / Co- applicant shall be CRG – 3 or
better.

Retail Loan Products Canara Institute of Bank Management Page 42

 CIC CORNER
Detailed guidelines on Canara Retail Grade (CRG)
Now the Bank has developed a new scoring card for Retail Lending Schemes named Canara Retail Grade (CRG) in place of existing Rating sheet
(NF 990) and the new scoring card shall be effective from 01.01.2022. Further the Retail Score Card of Canara Retail Grade (CRG) is being
configured under LAPS also.
NAME OF CICs: CIBIL, CRIF, EQUIFAX, EXPERIAN

Delegation of Power linked to CIC Score

CANARA Risk grade Risk description Sanctioning authority
CRG- Prime Low Risk-I
CRG-1 Low Risk-II
CRG-2 Normal risk Respective sanctioning authority, including authorities at Branches/RAHs/ ROs/ COs/HO
CRG-3 Moderate risk

CRG-4 High risk DGM-CO-CAC and above authorities, subject to ensuring suitable risk mitigants are in place.

Mapping of CIC Risk Grade to Canara Retail Grade: The delegation of powers and Rate of Interest for Retail Lending schemes sh all be linked to
Canara Retail Grade (CRG) as under:
RISK DESCRIPTION CIC RISK GRADE CANARA RETAIL GRADE Common Score for ALL 4 CICs
Low Risk CS 1 CRG -1 750 and above
Normal Risk CS 2 CRG -2 700-749
Moderate Risk CS 3 CRG -3 650-699
High Risk CS 4 CRG -4 Below 650

The Delegation of Powers assigned to various authorities under Retail Lending Schemes as defined in Chapter 8 of HO Cir IC/51/2022 dated
29.01.2022 shall remain unchanged.

In respect of the following cases, the concerned Sanctioning Authority can sanction proposals irrespective of Risk Grade: -

1. Renewal of existing facilities.2. Government sponsored schemes with aggregate loan quantum up to Rs. 2 lakhs per borrower 3. DRI Loans. 4.Canara
Pension.5. Gold Loans.6. Agri-Loans up to and including Rs. 10 lakhs in aggregate to a borrower/individual.7. Fully Secured Loans (by Tangible
Security) up to and including Rs.2 lakhs under Non Priority Sector in aggregate to a Borrower/Individual. 8. Education Loans.

Retail Loan Products Canara Institute of Bank Management Page 43

Relaxation in CIC scores for employees of Central Govt./State Govt./PSUs:
Delegated authorities as per respective retail scheme guidelines (irrespective of Risk Grading i.e. CRG-1 to CRG 4) can sanction consumer loans to
the employees of Central Govt./ State Govt./ PSUs with CIC score 600 & above, subject to the following conditions:

i. It has to be ensured that at the time of submission of proposal, salary account of the borrower is maintained with the branch and salary of at
least previous six months is being credited regularly to that account. Further, details of salary account shall be invariably included in the appraisal
note.
ii. No written off/ settled account in last 3 years as per CIC report.
iii. Credit card single default instance of not more than Rs 25000 in last 3 years.
iv. Reports having status as Written Off /Settled account which are more than 3 years old may be ignored for the purpose of linkage to delegation
in line with extant guidelines.

The following guidelines with regard to Credit Information Reports shall continue:
 In case the credit history as per Credit Information Report indicates the status as Written Off / Settled account (Not older than 3 years) then
the proposal shall be placed to next higher authority.
 However, in case the proposal falls under the delegated powers of Circle Head CAC (CGM/GM/DGM) & above authorities, then same can be
considered by the respective sanctioning authorities.
 In case the credit history indicates the status as Overdue then the respective sanctioning authority shall take a suitable credit decision.
 Reports having status as Written Off/settled account which are more than 3 years old may be ignored for the purpose of linkage to delegation.
 The extant guidelines on rejection of proposals shall be adhered to.
 On introduction of Canara Retail Grade (CRG), the existing Rating Sheet for Retail Lending schemes shall be discontinued.

Criteria for drawing CIR from multiple Credit Information Companies (CICs) for consumer segment:
Sl. No Particulars Report from one CIC Report from two CICs
Limit up to Limit above
I SECURED LOANS (other than Gold loans)
(A) Personal segment
(I) Housing loans 10 lakhs 10 lakhs

(II) Car loans 05 lakhs 05 lakhs

(III) Education loans 7.50 lakhs 7.50 lakhs

(IV) All other secured loans 05 lakhs 05 lakhs

Retail Loan Products Canara Institute of Bank Management Page 44

 (B) MSME segment 10 lakhs 10 lakhs

(C) Agri segment 03 lakhs 03 lakhs

(D) All other loans 10 lakhs 10 lakhs

II UNSECURED LOANS
(A) Personal segment
(I) Personal loans 01 lakhs 01 lakhs

(II) Education loans 04 lakhs 04 lakhs

(III) All other loans under Personal Segment 05 lakhs 05 lakhs

 WHEREVER , DRAWING OF TWO CIC REPORTS ARE REQUIRED AS PER EXTANT GUIDELINES, WORST RISK GRADE (LOWER OF THE SCORE ) OF TWO TO BE CONSIDERED FOR
CRG.

CANARA R ETAIL GRADE (CRG) SHALL BE APPLICABLE FOR THE FOLLOWING R ETAIL PRODUCTS: (HO CIR 825/2021)
1 HOUSING LOAN TO AGRI CULTURIST 10 TEACHER LOAN
2 HOUSING LOAN TO NRI 11 CANARA CASH
3 HL-CANARAKUTEER 12 CANARA HOME LOAN SECURE
4 CANARA HOME LOAN SUPER GAIN 13 ALL OTHER PERSONAL LOANS INCL . LOAN TO INDIVIDUALS AGAINST OTHER
APPROVED SECURITIES .
5 HOUSING CUM SOLAR LOAN 14 CANARA MORTGAGE
6 H L - CRE (3 RD UNIT AND ABOVE ) 15 CANARA RENT
7 CANARA HOME LOAN PLUS-TL 16 CANARA VEHICLE (2 & 4 WHEELER )
8 RAIN WATER HARVESTING 17 CANARA BUDGET – TL/OD
9 CANARAJEEVAN

General Guidelines:
The Canara Retail Grade (CRG) shall be borrower specific which means the grade shall be arrived for each borrower in case of Joint Borrower / Co
Applicant.
 The Retail Rating scorecard will be applicable for main applicant/Co-borrower.

Retail Loan Products Canara Institute of Bank Management Page 45

 DOP: In case CRG Grade of all the applicants is not the same, the higher (worst) CRG Grade among the applicants (including non-earning
members), shall be considered for deciding the Delegation of Powers.
 ROI: For the purpose of Rate of Interest, best CRG grade among all the applicants whose income is taken into account for arriving t he loan
quantum/repayment/NTH shall be considered. For deciding Rate of Interest, CRG grade of non-earning members has to be ignored.
 The scoring parameters and the corresponding risk attributes with score are detailed in Annexure II of HO Cir 825/2021.

DELEGATION OF POWERS (BRANCHES & RAH) – RETAIL LOANS (383/2023) (Rs in lacs)
Scheme Branches Branches Branch in CMs of AGM in ELB DGM Heading DM/AGM in
headed by headed by charge-Upto ELBs/CMs of Branches* RAH
Scale I Scale II Scale 3 VLBs (HEAD)
Large Branch
HOUSING FINANCE 10* 15* 30* 50* 100* 400 200
(ALL VARIANTS)
HL – CRE NA NA NA 20 50 250 100
CANARA SITE NA 10 15 25 30 35 35
CANARA MORTGAGE NA NA NA NA NA NA 100
CANARA RENT NA NA NA 100 200 300 200
CANARA VEHICLE 5 10 20 40 100 200 100
CANARA CASH 3 3 5 7 10 20 -
SWARNA LOAN SEE BELOW (HO IC/383/2023)
CANARA BUDGET 2 3 4 5 6 8 -
6 months 6 months 6 months gross 10 months 10 months 12 months gross -
gross salary gross salary salary gross salary gross salary salary
TEACHER LOAN 2 2 2 3 3 3
6 months 6 months 6 months gross 10 months 10 months 10 months gross -
gross salary gross salary salary gross salary gross salary salary
EDUCATION LOAN 10 20 30 As applicable to term loan Powers at branches Delegation The
maximum delegated powers to RAH Head to sanction Education
Loans shall be in line with sanctioning powers delegated to
CM/AGM for Term Loans (presently Rs. 125 lakhs &Rs. 250 lakhs
respectively), subject to scheme guidelines. (HO Cir 505/2021)
* No powers to sanction Housing loans at branches.

FOR VARIOUS GOLD LOAN SCHEMES: DELEGATION OF POWER: IC/383/2023

Swarna Loan Schemes (Swarna Loan, Swarna Overdraft &Swarna Express) / Canara MSME Gold Loan Schemes (Canara MSME Gold Loan & Canara MSME
Gold Overdraft) / Agri-Gold Loan Schemes (Agriculture Gold Loans & Overdraft Facility to Agriculturists)

Retail Loan Products Canara Institute of Bank Management Page 46

 Sanctioning Authority Maximum Sanctioning Powers per Maximum aggregate sanctioning powers under
scheme per borrower* various gold loan schemes per borrower
Branches headed by Scale I Rs. 35 lakhs Rs 50 lakhs
Branches headed by Scale II Rs. 35 lakhs Rs 70 lakhs
Branches headed by Scale III Rs. 35 lakhs
Credit Managers/ Senior Managers in VLBs/ELBs Rs. 35 lakhs Rs 105 lakhs

*Maximum quantum of finance for Agri Gold Loan for Crop Cultivation shall continue to be Rs. 10 lakhs per customer which is a sub limit of Agri Gold
Loan schemes.
@ Wherever, the limits are exceeding the proposed Delegated powers as per the above table, the same shall be permitted by AGM-RO-CAC & above
authorities.

DELEGATION OF POWER (BRANCHES &RAH)– RETAIL LOANS

CANARA PENSION Branch in charge
CANARA JEEVAN Circle Head-CO-CAC
Loans under the scheme up to maximum of Rs.50 lakhs (Rs.25 lakhs in case of mortgage of Flats)
HOME LOAN PLUS SCHEME Loans under the scheme can be permitted by the same authority who has permitted the Housing loan. In
case of HO- CO Head CAC may Sanction.
Upto 20% of the total Housing Loan sanctioned amount by taking mortgage of House property subject to:
HOME IMPROVEMENT LOAN 1) In Case of Branches not attached to RAHs:
a. Upto Rs.5.00 lakhs or One Year Annual Income whichever is less by the Branch-in-Charge.
b. Above Rs.5.00 lakhs upto Rs.15.00 lakhs.
OR One Year Annual Income whichever is less by RO-Head-CAC on case to case basis.
2) In case of branches attached to RAH: Upto Rs. 10.00 lakhs or One year annual income whichever is less
by the RAH in Charge, for their linked branches
OR
One Year Annual Income whichever is less by RO-Head-CAC on case to case basis.
3) Above Rs.15.00 lakhs upto 25.00 lakhs by Circle Head CAC on case to case basis.
4) Above Rs.25.00 lakhs by CGM/GM-HO-CAC on case to case basis.
(Home improvement loan shall not be sanctioned without mortgage of House/Flat).
HOME LOAN SECURE a) In case of branches attached to RAHs:
I. Respective Housing Loan Sanctioning Authority upto RAH Head.
II. Housing Loan falls under the sanctioning power of RO/CO/HO, the respective RAH Head can
sanction.
b) Wherever branches not attached to RAHs, then respective Sanctioning Authority upto RO Head CAC.
RAIN WATER HARVESTING Sanctioning authority as applicable to home improvement scheme guidelines
CANARA KUTEER As applicable to housing loan scheme guidelines
CANARA HOME LOAN SUPER GAIN As applicable to housing loan scheme guidelines
RISK GRADE BASED POWER- Respective Sanctioning Authority, including authorities at ROs/COs/HO upto Moderate Risk
MODERATE RISK

Retail Loan Products Canara Institute of Bank Management Page 47

 BRANCHES LINKED/MAPPED TO RAH Education Loan - Up to Rs 7.50 lacs only including Vidya Turant Proposal Mortgaged Based Loan - No
Power
Canara Vehicle – Four Wheeler - No Power
CANARA MORTGAGE a. Upto 120 months (10 years) by Respective Sanctioning Authority.
b. Upto 144 months (12 years) by Next Higher Authority on case to case basis.
c. Upto 180 months (15 years) by Circle Head CO-CAC on case to case basis.

NPA EMBARGO FOR BRANCH /RAH SANCTION – RETAIL LOANS

SCHEME NPA PERCENTAGE-Revised Norms HO CIRCULAR
CANARA BUDGET
CANARA VEHICLE* 5% 360/2021
OTHER RETAIL LOANS
*Loan can be sanctioned by the respective sanctioning authority without referring to embargo on NPA levels of the Branch under TWO wheeler loan
Scheme (Ho Cir 962/2020)

EMBARGO ON BRANCHES/RAH TO SANCTION LOANS UNDER RETAIL LENDING SCHEME-

In respect of Branches mapped to RAHs for sanctioning Mortgage Based Retail Loans- Branches mapped to RAHs have no powers to sanction any
Mortgage Retail Loans. In case, Branches mapped to RAHs having NPA levels of more than 5% under any
Mortgage based loans, the respective RAHs have no powers to sanction the loans under these schemes.
The above proposals have to be sanctioned by RO HEAD CAC and above Authorities up to their respective Delegated Powers on case to case basis. Circle
Heads are authorized to permit such RAHs to sanction Retail Mortgage based Loans and have to review all mapped Branches to RA Hs on quarterly basis
duly analyzing the delinquency/ NPA levels before permitting such RAH.

In respect of Branches mapped to RAHs for sanctioning other than Mortgage based Retail Loans,
In respect of branches not mapped to RAHs for sanctioning of all Retail Loans
Branches having NPA levels of more than 5% under any Retail Lending Schemes have NO powers to sanction the loans under these schemes. The above
proposals have to be sanctioned by RO HEAD CAC and above Authorities up to their respective Delegated Powers. Circle Heads are authorized to permit
select Branches/RAHs to sanction Retail Loans despite their NPA under Retail Loans being more than 5% subject to justifications.

Retail Loan Products Canara Institute of Bank Management Page 48

 DOCUMENTATION
LOAN APPLICATION
NF 964 Retail loans housing & mortgaged based loan
NF 965 Retail loan other than mortgage based loan
NF 1011 Education loan
NF 1009 Application cum letter of pledge for Swarna loan ( Latest Modification Ho Cir 785/2020)
NF 972 Application for loan against shares/debenture including Canara Cash
NF 469 DIR loan (In case of Education Loan NF 1011)
NF 1012 Skill Loan Application
NF589 Particulars of assets in the name of the guarantor / Co-obligant / Borrower
Proof of assets / Not applicable for retail loans [detail available in NF 964, NF 965 ]
NF 588 Credit investigation - From two upto 50000/- , three informants above 50000/-
Canara Retail Grade Canara Retail Grade (HO Cir 825/2021)
BRANCH CERTIFICATION DOCUMENTS
NF 967 Certificate of compliance of terms & conditions – Retail Loans
NF 482 Certificate of Loan Paper Obtained – Other than Retail
NF 803 Letter evidencing execution of documents
NF 546 Loan Signature Card
NF 821 Letter of attestation , for anyone sign in vernacular language / illiterate
NF 373 Particulars of livestock, vehicle, machinery purchased after date of loan
NF368 Request for waiver of insurance
NF 721 Undertaking letter for loans
RTO FORMSFORM 29 Notice of Transfer of Ownership of A Motor Vehicle. - obtained in duplicate
RTO FORMSFORM 30 Application For Intimation And Transfer Of Ownership- obtained in duplicate
RTO FORMSFORM 35 Notice Of Termination Of An Agreement Of Hypothecation -obtained in duplicate
RTO FORMSFORM 34 To be delivered to dealer for noting bank’s hypothecation
PERSONAL GUARANTEE
NF 371 Guarantee covering letter
NF 370 Guarantee agreement other than housing loan
NF 982 Guarantee agreement housing loan
MORTGAGE TRANSACTION
NF 461 Letter evidencing deposit of title deeds _ for fresh mortgage
NF 462 List of title deeds deposited - schedule a & b
APP 32 OF DOC MANUAL Additional mortgage
CLEAN LOANS
NF 991 DPN retail loan
NF 481 DPN other than retail loan
RUNNING LIMIT

Retail Loan Products Canara Institute of Bank Management Page 48

NF 372 Request for od facility
NF 480 Pronote _running limit
NF 1001 A/c opening form for running account
NF 110 Proprietorship letter
NF 111 Partnership letter
ACKNOWLEDGEMENT OF DEBTS
NF 760 Acknowledgement of debt & security
NF 761 Acknowledgement of debt & security-legal heirs
NF969 Letter for loans and advances against term deposits.
NF 970 Letter for loans against approved securities (including third party).
NF 971 Letter for shares debenture loans advances.
NF 855 Hypothecation agreement misc. items
NF 981 Housing loan agreement
NF 928 Canara vehicle agreement
NF 440 Education loan agreement
NF 1024 Disbursement Request Form for all type of loans
TL AGREEMENT Appendix -71 of Retail Manual for Home Loan Plus
TL AGREEMENT Term loan agreement to be vetted by legal section for Canara Rent , Canara Mortgage
LINK LETTER Disbursement made subsequent to date of loan paper – App 89 of Documentation Manual

Retail Loan Products Canara Institute of Bank Management Page 49

 SANCTION MEMORANDUM

Branches to use the respective sanction memorandum format prescribed for loans under each retail lending scheme, accord / record their sanction and
hand over a copy of the sanction to the party against acknowledgement for having accepted all the terms and conditions. Branches may note to record
sanction particulars / conditions which are only relevant / applicable to the borrowers. The other observations / sanction conditions which are required
for in-house compliance are to be recorded in the rating sheet-cum-credit report.

Sanction Memorandum for all loans are as below:(Appendix _Manual of Instruction on Retail Lending)
 Sanction Memorandum of Housing Loan as per Appendix-83
 Sanction Memorandum of Canara Vehicle Loan as per Appendix-84
 Sanction Memorandum of all other mortgage based loans other than Housing loan as per Appendix-85
 Sanction Memorandum of all Non- mortgage based loans other than Canara Vehicle as per Appendix-86

However, Branches / Offices to ensure that all other terms and conditions as per sanction norms also need to be included while conveying the
sanction. Further any modifications in the scheme guidelines such as rate of interest, service charges, documentation charges etc., are to be
incorporated.

Generation of Sanction memorandum has been enabled in LAPS Package and branch may use the same duly incorporating all terms & conditions.

We furnish here below some important provisions of the BCSBI Codes for compliance by Branches/RAH/Offices.
 Keeping customers informed about the changes in interest rates, charges and other terms and conditions.
 Issuing acknowledgements for loan applications received, both manually and online, with application number and date of receipt. To dispose
of the loan applications received within the stipulated time norms.
 To provide receipt of all documents to the title taken as primary/collateral security.
 Issuing sanction letter in writing containing all the major terms and conditions of the loan sanctioned.
 To provide copies of the documents executed by the borrower.
 To return all the securities/documents within 15 days of repayment of all dues to customers.
 To provide in writing, to the loan applicant, the reasons for rejection of the loan proposals.
 To ensure disbursal of the loan promptly after all the sanction terms and conditions are complied with. To provide with a loan statement
periodically.

Retail Loan Products Canara Institute of Bank Management Page 50

 PAYMENT TO OUTSOURCING AGENCIES BY THE BANK

1. SERVICE CHARGES PAID TO EMPANELLED DIRECT SELLING AGENTS (DSAs): HOUSING LOANS
Per Loan Amount Payment of Service Fees / Commission
(Inclusive of GST & other charges if any)
Limits below Rs. 50 lakhs 0.25% of the loan amount.
Limits of Rs. 50 lakhs and above. 0.30% of the loan amount subject to a maximum of Rs. 1.00 lakh per proposal.
HL Sourced during the month above Rs. 5 Cr. 0.35% of total loan amount sourced during the month subject to a maximum of Rs. 1.25
lakh per proposal.
For Takeover of loan:
Limits below Rs. 50 lakhs 0.30%of the loan amount.

Limits of Rs. 50 lakhs and above 0.35% of the loan amount subject to a maximum of Rs. 1.10 lakh per proposal

The payment is subject to loan amount sanctioned and disbursement of minimum of 20% of the sanctioned amount out of the applications sourced
by the DSAs

2. SERVICE CHARGES PAID TO AUTOMOBILE DEALERS & THEIR SALES EXECUTIVES: CANARA VEHICLE(4-WHEELER) LOANS
SERVICE CHARGES TO AUTOMOBILE DEALERS SERVICE CHARGES TO SALES EXECUTIVES

1.30% of Loan amount with a maximum cap of Rs. 50,000. Rs. 1,500/- for Sanctioned Proposals.

HO CIR 700/2021 Modification in payment of service charges payable to automobile dealers and their sale executives for sourcing the proposals
under Canara vehicle (4 Wheeler)-The payment of service charges to Car Dealers and Sales Executives, i.e., 1.30% of loan amount with a max of Rs.
50,000/- and Rs. 1,500/- respectively, can be made flexible between both within the overall permissible cap.RO Head is permitted to authorize flexible
payment of Service Charges between both within the overall permissible cap. The above modification is valid till 31.03.2022

3. SERVICE CHARGES PAID TO BUILDERS: HOUSING LOANS

SERVICE CHARGES PAID TO BUILDERS Specific Conditions

0.25% of the Housing Loan amount for referring Housing Provided minimum three Housing Loans or a minimum amount of Rs.1.00
Loan proposals to our Bank subject to a Maximum amount Crore is sanctioned and disbursed in the same project.
of Rs. 50,000/- per loan sanctioned

Retail Loan Products Canara Institute of Bank Management Page 51

 FRAUD PREVENTION

DO NOT DEVIATE FROM THE SYSTEMS AND PROCEDURES- Prevention of frauds is of paramount importance, as occurrence of frauds causes’ financial
loss, reputation and damages the morale of the human resources in the organization.

HOUSING LOANS

 Obtain duly filled application with full details. Verification of complete KYC documents/e-KYC with due diligence before sanction.
 Not to accept the photocopies of the documents without verifying with the original.
 All the land documents in originals to be handed over to the advocate by the bank officials only and all the queries to be ro uted through bank.
Verification of genuineness of the documents independently through advocates/ solicitors.
 Obtain and verify the CIRs of the applicants before sanction. Periodic inspection of the security to be undertaken.
 Pre-sanction visits to existing address, work-place, proposed site/property etc. to be scrupulously undertaken and the date of inspection to be
recorded in NF-967.Visit the employer to get confirmation about the employment wherever required.
 Personal Verification of original salary slips with the employer. Obtain salary slips/certificate issued by competent authori ty. If the borrower
himself/ herself is the drawing officer, insist for salary certificate counter signed by his/ her superiors in their office.
 Regular credit of salary to the bank account, to be verified. Comparing the net salary amount with the credits of bank statement.
 The details of transactions in the account during the last 6 months to be verified with the pass sheets of the party maintain ed with our/other
banks, duly taking note of the other liabilities of the party.
 Try to obtain salary mandate and get it registered with the employer. Not to send the salary mandate to the employer through the borrower.
Send it by post or courier separately.
 Obtention of standing instruction/ECS/NACH towards EMI shall be from the account to which salary credits are received.
 Identification of reputed builders in the area and wherever possible, try to have tie-ups with Builders/pre-approval of projects.
 Background of the Vendor and builder to be looked into by calling for their Bank details/statements/OPL and also references o f the earlier
project completed/ on hand. All Statutory/ legal permissions to be checked with regard to the property / site.
 The loan quantum is to be arrived based on the income details submitted by the party and other scheme guidelines duly ensuring genuineness
of the documents submitted, cross verifying the same.
 The amount mentioned in valuation report may be cross verified with the guidance value/ discreet enquiries in the area.
 In case of takeover of liability, the remittance shall be made directly to bank/NBFCs from whom the liability is being taken over.
 All Statutory/ legal permissions to be obtained with regard to the property / site and for the proposed construction.
 RAH may use services of Vetting/ External Agencies only for verifying the credentials wherever bulk proposals received and cross check their
reports. These reports are to be scrutinized carefully.
 Post sanction visits should be conducted at each stage of disbursement to ensure the end use of the loan proceeds and the details therein should
be recorded in the inspection report with comments on independent enquiries made, land marks etc.

Retail Loan Products Canara Institute of Bank Management Page 52

  Obtain photograph of building/flat at each stage of construction and to be countersigned by the officer/ Manager who visited the site with date
seal.
 The mortgaged property to be registered with CERSAI within the stipulated time norms.
 The work completion certificate issued by the builder to be countersigned by the architect/ engineer at each stage. Genuineness of the
estimate/project cost was not independently assessed.
 Non-adhering the delegation of powers, review mechanism. Non-Compliance of terms and conditions stipulated at the time of sanction.

VEHICLE LOAN

 Ensure genuineness of KYC documents of the customer/borrower duly verifying Aadhar No, PAN No, Passport etc., through authorised sites or
empanelled Vetting Agencies. Obtain prescribed application duly filled up. Do Market enquiry about the Borrower by visiting Borrower’s place.
 In case of Non-Salaried, verify the Balance Sheets, Bank statements, and IT Return through empanelled Vetting Agencies. Don’t send salary
mandates for signature to the employer through the borrower, but send it by Post / Courier separately.
 Conduct independent Pre-Sanction visit to the borrower’s place compulsorily despite of engagement of Vetting Agencies and better to take a
photo with the borrower. Obtain copy of R.C. / certificate for having registered vehicle & ensure duly noting of our Bank’s hypothecation.
Wherever the loan is for second hand vehicles, obtain Form “B” extracts of the vehicle from RTO.
 It is mandatory for Branches/Offices, verification of Vehicle Details through E- Vahan portal (https://Vahan.nic.in).A copy of the report is to be
preserved and made available for verification.
 Make discreet enquiries and ensure that the quotation / invoice is from a genuine Primary Dealer by personally visiting the Dealer. Phone No. /
Mobile No of the dealer should be verified personally.
 Dealers who undertake registration of vehicles to be preferred. Financing through Tie up arrangements with approved dealers be preferred.
 Whenever vehicles are financed by branches, the loan proceeds and margin money is to be directly delivered to the dealer only by way of
Demand Draft (DD) along with a covering letter, in person, by Branch in-charge / Credit Officer against proper acknowledgment. Capture Vehicle
Loan Account Number when payment is made to Vehicle Dealers & their Sales Executives through FP: GSX06.
 In case disbursement by way of NEFT/RTGS, genuineness of the dealer and their invoice to be verified. Insist Proforma invoice for NEFT/RTGS
mandate form duly signed by Dealer’s Authorized signatory. After sending the RTGS/NEFT an e-mail has to be sent to the dealer’s e-mail id.
RTGS/ NEFT payment report (along with UTR No.) and the e-mail sent copy to be kept with the loan papers.
 Utilize the mobile based application i.e., mParivahan, this empowers citizen to get access to the details corresponding to any valid RC/DL
number anytime anywhere. Instant access and mobility shall benefit the citizen and Government departments/Banks/Financial Institutions in
terms of ready information and transparency in the system.
 Physical inspection of vehicle to be done immediately. Verify the Engine No. & Chassis number of the vehicle & ensure that these particulars
are same as those appearing in the RC Book.
 Dealer to be informed about our charge and instructed to obtain acknowledgement from the borrower for having received the vehicle in good
condition and to send us the acknowledgement.
 There should not be any laxity in conducting post sanction inspection.
 There should not be any oversight in verifying the insurance copy& our Bank hypothecation in RC COPY of the Vehicle financed by us

Retail Loan Products Canara Institute of Bank Management Page 53

 THIS IS ONLY ILLUSTRATIVE AND NOT EXHAUSTIVE

RETAIL LENDING RELATED CIRCULARS 2023-23

IC/655/2023 Modification in existing guidelines related to tie-up arrangements with reputed Builders
IC/654/2023 Mod. of DOP for permitting Concession in ROI under Housing loan (all variants) irrespective of CRG & loan amount( CAC of the Board)
IC/653/2023 Ext of Retail loan Festival by waiver of 100% proces charges HL and VL and cont of concession on RLLR from 01.09.2023 to 31.12.2023
IC/646/2023 1.Extending concession in Rate of Interest to Nine (09) more top premier institutions under Vidya Turant Scheme. Applicable RoI shall be
IC/643/2023 8.60% (RLLR-0.65%)
- COVERAGE OF ELIGIBLE EDUCATION/SKILL LOANS SANCTIONED UNDER CGFSEL & CGFSSD FOR JUNE 2023 QUARTER
IC/625/2023 To include 11 more institutions under Vidya Turant Education Loan Scheme
IC/628/2023 Extending concession in Rate of Interest to 9 more top premier institutions under Vidya Turant Scheme. Applicable RoI shall be 8.60%
IC/619/2023 (RLLR-0.65%)in Canara LRD Scheme
Modificaton
IC/602/2023 Automation of Vehicle Loan (4-Wheeler) disbursement functionality in CBS for Retail Loans
IC/530/2023 Modification in guidelines for Approving the Builder’s Projects for Housing Loan Portfolio
IC/480/2023 Inclusion of Institution under Vidya Turant under Category B (Mahatma Gandhi Uni of Medical Science& Tech.Jaipur)

IC/444/2023 Revise Scheme Code (Concession in RLLR) for HL VL (Four wheler including Canara Green Wheels and Agriculturist)
Category C - D Y Patil University Navi Mumbai, Goa Institute of Management GOA.
IC/439/2023 Concession under Vidhya Turant for student pursuing Engg Medical Management from Premier Institute(RLLR- 0.65)
IC/442/2023 Tie up arrangement between Bank and Builder , Bank and RERA Registered DSA to route HL Lead

IC/421/2023 Master guidelines on CSIS scheme

IC /414/2023 Relaxation wrt Risk Weight, LTV,and margin for NEW HL sanctioned after 01.04.2023 discontinued
IC/412/2023 SOP for review of long term retail loan(Mortgage based loan above 100 Lakh and EL above 50 Lakh) for Retail TL existing Guidelines of
IC/384/2023 Rs 5 CR
Retail on Annual
Loan FestivalReview.
12.04.23 to 31.08.23 , waiver of Processing Charges in HL (Including Sourced by DSA) VL and EL
IC/375/2023 Coverage of Eligible EL sanctioned under CGFSEL & CGFSSD for Mar 2023 Quarter
IC/141/2023 Education Loans – - Prevention of Frauds – DO’s & DONT’s
IC/137/2023 Canara Vehicle Loans – Prevention of Frauds – DO’s & DONT’s
IC/112/2023 MoU with M/S Tata Motors Passenger Vehicles Ltd. For Financing Under Canara Vehicle Loan Scheme.
IC/111/2023 Modification of guidelines with respect to flexibility in selecting EMI commencement date to match with Salary/ Income generation date
IC/110/2023 under RetailinLoans.
Concession RLLR for Housing Loan (all variants) and Vehicle Loans (including Canara Green Wheels and Agriculturist).
IC/109/2023 Modifications in respect of various Retail Lending scheme guidelines (Canara Rent, Home Loan Plus and Canara Pension)
IC/108/2023 Modification in Housing Loan Scheme guidelines and Discontinuation of Home Improvement Loan scheme.
IC/98/2023 Modification in Rate of Interest in respect of Canara Pension Loan scheme.
IC/93/2023 Reiteration of guidelines in Concessional ROI of 25bps for Housing Loans (all variants) due to revision in RLLR w.e.f 12.02.2023
IC/75/2023 Modified guidelines on process for Sale of Pledged shares
IC/74/2023 Modifciation Under Canara Vehcile Loans (4 Wheeler Including Canara Green Wheels) Scheme Guidelines Under Eligibilty Criteria For
Nonsalaried Class Borrowers

Retail Loan Products Canara Institute of Bank Management Page 54

IC/70/2023 Housing Loan Scheme Guidelines With Regard To Eligibility & Loan Quantum For Non Salaried Class Borrowers.
IC/52/2023 Modification In Housing Loan Scheme Guidelines
IC/51/2023 Modification in common guidelines in respect of Retail Lending Schemes with regard to close relatives
IC/50/2023 Modification in Rate of Interest in respect of Housing Loan NP-CRE & Canara Rent Products.
IC/49/2023 Modification of guidelines in loan Sanctioning Powers vested with Scale III officers posted at RAHs and Canara Vehicle Scheme guidelines
IC/48/2023 Modification in Canara Mortgage Loan scheme guidelines
IC/42/2023 Corrigendum To Retail Lending Policy

IC/41/2023 Special Package Under Retail Lending Scheme Hefa – Reiteration Of Guidelines
IC/28/2023 Reiteration of guidelines in Concessional ROI of 25bps for Housing Loans (all variants) due to revision in RLLR w.e.f 07.01.2023
IC/13/2023 Coverage Of Eligible Education/Skill Loans Sanctioned Under Cgfsel & Cgfssd For December 2022 Quarter.
IC/11/2023 Reiteration of guidelines in Modalities of Accounting at RAHs
IC/793/2022 Extension of Retail Loan Festival from 01.01.2023 to 31.03.2023 on Pan India Basis.

IC/791/2022 Extension of Concessional ROI of 25 bps under Housing Loans (all variants) where score band as per Canara Retail Grade - CRG-1>80 i.e.,
Low Risk, for further period from 01.01.2023 till 31.03.2023.
IC/772/2022 Vidya Turant – Instant Education Loan Sanction Facility For The Students OF IIMs/IITs/NITs/IISc/ISB–Addition Of Institutions And
IC/741/2022 Modifications
Housing In Scheme Guidelines.
Loan-Prevention of Frauds – DO’s & DONT’s .
IC/729/2022 Implementation Of DDE Services (Digital Document Execution) Of M/S NESL In LAPS Module For Four Wheeler Loans.
IC/715/2022 Clarification on collection of Pre-payment penalty for pre-closure/takeover of Retail Term Loans.
IC/680/2022 Corrigendum To Retail Lending Policy
IC/640/2022 Modification In Housing Loan Scheme Guidelines
IC/622/2022 Coverage Of Eligible Education/Skill Loans Sanctioned Under CGFSEL & CGFSSD For September 2022 Quarter.
IC/613/2022 Retail Lending Policy of the Bank for the FY 2022-23- updated till 30.09.2022
IC/612/2022 Renewal of Special Package under Retail Lending Schemes to the employees of India’s premier Educational Institutions / Colleg es and
Central Universities coming under MOE & MOHFW and which are eligible to be financed by Higher Education Financing Agency (HEFA) – on
all India basis
IC/599/2022 Modification of existing guidelines with respect to fixed EMI and elongated tenor for Housing Loans (including Housing Loan to NRIs)
IC/595/2022 Extension of Concessional ROI of 25 bps under Housing Loans (all variants) where score band as per Canara Retail Grade - CRG-1>80 i.e.,
Low Risk, for further period from 01.10.2022 till 31.12.2022.
IC/581/2022 Revision in Rate of Interest under Canara Mortgage scheme
IC/540/2022 Observance of Retail Loan Festival from 01.09.2022 to 31.12.2022 on Pan India Basis
IC/533/2022 Availability of flexibility in selecting EMI commencement date to match with Salary Date/Income Generation Date under Retail Loans -
Reiteration of guidelines.
- One month repayment holiday for loans repayable by EMIs at the discretion of the sanctioning authority.
- Branches / Offices can select EMI Commencement date as per customer’s choice by linking EMI date to his/her income
generation /salary payment date.
- To ensure that total repayment term does not exceed maximum period permitted under that particular scheme.
IC/528/2022 ECS facility for recovery of monthly instalments in respect of Retail loans through Mandate management under NACH - Reiteration of
guidelines
IC/514/2022 Strengthening of Recovery Mechanism in respect of Retail Loans - Role of RAHs/Branches & Regional Offices for monitoring and recovery
of Retail Loans – Modification in functional guidelines.
IC/507/2022 Special Package under Canara Budget, Canara Vehicle Loan & Education Loan schemes to the employees of M/s Can Fin Homes Ltd. – On
All India Basis

IC/499/2022 Modified guidelines on change of Interest Regime from MCLR to RLLR regime and effective ROI for Canara Solar Product code
IC/498/2022 MoU with IISc, Bengaluru for financing Education Loans under Vidya Turant Scheme - valid up to 04.08.2027.
IC/496/2022 New Schedule Codes- Revision in Rate of Interest under Canara Vehicle loans (4 wheeler), Canara Green Wheels including agriculturist &
Firms and Companies (General & Electric Vehicle).
IC/493/2022 Revision in Rate of Interest under Canara Vehicle loans (4 wheeler), Canara Green Wheels including agriculturist & Firms and Companies
(General & Electric Vehicle)
IC/481/2022 Role of RAHs/ Branches for monitoring and recovery of Retail Loans –Modified Functionality Guidelines:

Retail Loan Products Canara Institute of Bank Management Page 55

 End to End (branches located within 20kms from RAHs) End-to-end process consists of Pre-sanction process, Appraisal, Processing (i.e.,
sanctioning, documentation, disbursement, safekeeping of loan documents) and recovery mechanism till closure of the loan. However,
the primary responsibility of follow-up & recovery mechanism of the loan shall be with the respective branches where the loan is attached
as per loan balancing report.
IC/458/2022 Jansamarth portal, one-stop digital portal linking all Government sponsored credit linked Subsidy schemes.
Routing of all Credit linked interest subsidy (CSIS, ACSISEBCOBC, Padho Pardesh) eligible Educational loan application through Jansamarth
Portal
IC/453/2022 Housing Loan-Prevention of Frauds – DO’s & DONT’s.: Reiteration of some of the Important DO’s & DONT’s / Risk mitigants, to prevent
Frauds under Housing Loans. Need for Strict Compliance of guidelines in respect of Identification, verification of KYC& ITRs, Pre-
Sanction, Due diligence in Processing, Sanction, Disbursement and Post Sanction monitoring in respect of Housing Loans
IC/447/2022 Introduction of Vahan portal in SAS Module for online Addition, Continuation and Termination of Vehicle Loan Hypothecation to
ParivahanSewa Portal (Ministry Of Road Transport & Highways, Government Of India) for Delhi and Kerala States.
User Manual for the detailed procedure of Addition, Continuation and Termination of Vehicle Lo an Hypothecation details in
ParivahanSewa Portal, GoI.
IC/442/2022 New education loan scheme for pursuing master’s degree abroad from select top ranking universities of world. Minimum eligible loan
quantum Rs.7.50lakhs. Maximum no limit.
IC/434/2022 Discontinuation of Housing Loan to Corporates with immediate effect until further orders.
IC/433/2022 Modification in Canara budget - retail lending scheme guidelines: CGM/GM-CO-CAC and above authorities can sanction 15 months gross
salary subject to maximum of Rs.15.00 lakhs (Earlier it was Rs.10.00 lakhs).
IC/409/2022 BANK FINANCE TO GOVERNMENT OWNED ENTITIES:
Restrictions/Precautions for financing Infrastructure/Housing Projects/ Bridge Loans against receivables from Government – Reiteration
of guidelines Ø Additional guidelines on extending Bridge loans to Government owned entities.
IC/408/2022 MODIFICATION IN ELIGIBILITY CRITERIA FOR APPOINTING DIRECT SELLING AGENTS(DSAs): Retired Govt. employees/Retired employees of
Public Sector Undertaking are eligible for appointment as DSA. Retired/Ex-employees of our Bank/Public Sector Banks, close relative of
our Bank staff/Ex-employee /Retired employee are not eligible for appointment of DSA.
ii. Further, new leads sourced by existing DSAs, who are our Ex-employees /Retired employees of any PSBs, close relatives of Bank
staff/ Ex-employees / Retired employee shall not be accepted / sanctioned.
IC/386/2022 LOANS AND ADVANCES AGAINST SHARES/DEBENTURES: Revised list of companies: whose shares and debentures have been approved by
the Bank, for granting of loans/advances against pledge of shares/debentures. · No fresh loans/advances shall be granted against
securities held in materialized form. · No fresh loans / advances shall be granted against securities which are not appearing in the
approved list.
IC/385/2022 Standard Operating Procedure for viewing “Dashboard on Vidya Lakshmi Portal application” by RAHs for their linked branches.

IC/376/2022 Integration of M/s Maruti Suzuki Smart Finance Portal (MSSF) in our LAPS Module. Standard Operating Procedure with detailed Customer
Journey at MSSF portal and Bank Journey at LAPS Module.
IC/375/2022 Introduction of “Canara Green Wheels” - new scheme to finance electric four wheeler vehicles.
IC/374/2022 Modification in Housing Loans Scheme Guidelines – Adding back depreciation to income for arriving loan quantum
IC/365/2022 Retail Lending Policy of the Bank for the FY 2022-23.
IC/356/2022 Pre-Sanction verification of credentials of applicants through our Bank officials / Vetting Agencies / M/s Perfios (Fin -Tech Company) -
Reiteration of guidelines to ensure due Diligence.  Independent verification of customer credentials (Customers Due Diligence) by our

Retail Loan Products Canara Institute of Bank Management Page 56

 Bank staff/officials where services of Vetting Agencies are not available.  Pre-sanction verification of credentials of applicants through
vetting agencies as a part of due Diligence.  Utilizing the services of M/s Perfios (Fin-Tech Company) for Digital Due Diligence of
customer’s credentials
IC/342/2022 A Special Package has been permitted under Housing Loan, Education Loan & Vehicle Loan schemes to the employees of M/s Canara HSBC
Oriental Bank of Commerce Life Insurance.  This Special Package is valid till 30.04.2023.  100% waiver in the applicable processing
charges for Housing Loans, Canara Vehicle Loans (four wheeler) and Education Loans (for dependent members of employees).  Concession
in ROI under Vehicle Loans (four wheeler)
IC/322/2022 Canara Vehicle Loans - Prevention of Frauds – DO’s & DONT’: Reiteration of some of the Important DO’s & DONT’s to Prevent Frauds under
Canara Vehicle.  Need for Strict Compliance of guidelines in respect of Identification, KYC, Pre-Sanction, Due diligence in Processing,
Sanction, Disbursement and Post Sanction monitoring of Canara Vehicle Loans thereby preventing frauds under this scheme.
IC/321/2022 Housing Loan-Prevention of Frauds – DO’s & DONT’s .: Reiteration of some of the Important DO’s & DONT’s / Risk mitigants, to prevent
Frauds under Housing Loans.. Need for Strict Compliance of guidelines in respect of Identification, verification of KYC & ITRs, Pre-Sanction,
Due diligence in Processing, Sanction, Disbursement and Post Sanction monitoring in respect of Housing Loans.
IC/311/2022 Coverage of eligible Education/Skill loans sanctioned under CGFSEL & CGFSSD for March 2022 quarter:
All Education Loans sanctioned up to a limit of Rs.7.50 lakhs without any collateral security/third party guarantee are eligible for coverage
under Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
Skill Loans sanctioned up to a limit of Rs.1.50 lakhs without any collateral security/third party guarantee are eligible for coverage under
Credit Guarantee Fund Scheme for Skill Development Loan
IC/271/2022 HOUSING-CUM-SOLAR LOAN (619)- Modification in subsidy guidelines for residential sector (with or without housing loan)
IC/270/2022 Linking of Retail loan accounts under REPO linked lending rate of interest (RLLR) regime – Reiteration of guidelines.
IC/257/2022 Continuation of modified guidelines related to Payment of Service Charges payable to Automobile Dealers & their Sales Executi ves - RO
Head is permitted to authorize flexible payment of Service Charges between both within the overall permissible cap.
IC/81/2022 Publishing List of Authorized Vehicle Dealers (Four Wheeler) in CANNET
IC/35/ 2022 Rationalisation of Risk Weight and Reduction in Margin for New Housing Loans sanctioned till 31.03.2022
As per 807/2021- Modified guidelines on LTV Norms and Risk Weights for Individual Housing Loans sanctioned on or after 16.10.2020& as
per 912/2021 where in delegation of powers for sanctioning housing loans with reduced margin up to 10% were communicated.
Branches / Offices shall note that the above guidelines with regard to relaxation in LTV norms, Risk Weight and margin on Housing Loans
shall be applicable for Loans sanctioned till 31.03.2022 only.
IC/27/2022 Waiver of online pre-disbursement review of personal loans upto Rs 5.00 lakh sanctioned at RAHs – modification in policy guidelines.
All Retail loans sanctioned by Manager/Sr.Manager of RAH/RAH-in-charge shall be reviewed by next higher individual authority at RO
through online pre-disbursement review of loan sanction and approval of loan documents for retail loans under LAPS except for all personal
loans upto Rs 5.00 lakh.
Post Sanction Review to be carried out for the above cases as applicable to other loans & advances as per HO Cir 204/2 021.Except the
above, all other existing guidelines remain unaltered. The above relaxations are permitted upto 30.06.2022 and will be review ed
thereafter for further continuation.
IC/11/2022 Gold loan schemes-delegation of power modified
The competent authority has permitted modifications in the delegation of powers in respect of various Gold Loan schemes of the bank

Retail Loan Products Canara Institute of Bank Management Page 57

 Sanctioning Authority Maximum Sanctioning Maximum aggregate sanctioning powers
Powers per scheme per under various gold loan schemes per
borrower* borrower
Branch-in-charge of Small Branches Rs. 35 lakhs Rs 50 lakhs
Branch-in-charge of Medium Branches Rs. 35 lakhs Rs 70 lakhs
Branch-in-charge of Large Branches Rs. 35 lakhs
Credit Managers/ Senior Managers in VLBs/ELBs Rs. 35 lakhs Rs 105 lakhs
*Maximum quantum of finance for Agri Gold Loan for Crop Cultivation shall continue to be Rs. 10 lakhs per customer which is a sub limit
of Agri Gold Loan schemes.
@ Wherever, the limits are exceeding the proposed Delegated powers as per the above table, the same shall be permitted by AGM-RO-
CAC & above authorities.
**********

Retail Loan Products Canara Institute of Bank Management Page 58

 के नरा बैंक, अनुसंधान व प्रकाशन अनुभाग
के नरा बैंक प्रबंधन संस्थान मणिपाल
Canara Bank, Research and Publication Section
Canara Institute of Bank Management, Manipal
hostcrp@canarabank.com | www.canarabank.com

Retail Loan Products Canara Institute of Bank Management Page 59