Canara Bank: Credit Card, Loan for Low Income (Rs 8,333) Earners
|Sr. No||Credit Card Name||Minimum Annual Income Required (in Rs.)||Equivalent Minimum Monthly Income (in Rs.)|
|1||Canara Visa Classic||1,00,000||8,333|
|2||Canara MasterCard Standard||1,00,000||8,333|
|3||Canara Global Gold||2,00,000||16,667|
|Sr. No||Name of Loan Product||Purpose||Minimum Net Take Home Salary (Monthly) after installment|
|1||Budget||Personal or domestic need||10,000|
|2||Pension – General Public||Medical expenses and other genuine personal needs||Must be a pension drawer from Canara Bank|
|3||Teachers Loan||Personal or domestic need||10,000|
|4||Swarna Loan (Gold Loan)||Medical expenses and any other contigency||Depends on the value and quality of the gold ornaments|
|5||Canara Cash||Instant Cash||Depends on the value of the shares|
|6||Consumer Loan||Purchase of consumer durable items||6,000|
|7||Home Improvement||Furnish house/flat||2,000|
|8||Home Improvement||Furnish house/flat||Minimum annual income of Rs. 50,000 (for self employed i.e. non-salaried)|
- Helps in building credit history especially for the beginners. In fact, credit card and loan are the only options to build credit history. Debit card or a normal bank account will never help in building a credit history. Not having a credit history has its own negatives. Most importantly, a person with no credit score has higher chance of credit application rejection. This is because, lender has no way to evaluate credit worthiness of such applicants.
- A good credit score further helps in getting loan at a lower interest or increase credit limit in the future at no extra charge.
- Convenience offered by cards are many since it is accepted by most of the merchants today.
- Rewards and cash backs received help in saving money.
- They come with high level of security which is not possible in case of cash.
- Many cards come with insurance as well. Although there are insurance for low income earners in India, having additional insurance does no harm and that too with no premium to be paid.
- There is a 20 days (or more) grace period offered to make the repayment. So especially poor salaried or self-employed individuals have sufficient time to make repayment.
- Is the second option to meet emergency money requirement after the credit card. Of course you can ask your friends/relatives for money at the time of need. But if all options fail, personal loan is the only solution left.
- Money is disbursed in a speedy manner.
- Can be used for almost any purpose such as medical expenses, house improvement, buying a vehicle and so on.
- As mentioned above, helps in building credit score.
- There is no mandatory requirement of collateral. Although you can also get a secured personal loan by pledging property, shares, gold, LIC policy, mutual fund and few others. This type of secured personal loan has low interest rate compared to traditional loan.
- Very minimal documents are required compared to other types of loan e.g. home loan.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).