Canara Bank launches loan scheme for consumer durables

Available to salaried, non-salaried individuals up to Rs 1 lakh with repayment period up to 36 months

With an aim of increasing its retail loan portfolio, the Bangalore-based public sector lender Canara Bank has introduced a new retail loan scheme, which provides for purchase of consumer durables like LED Flat Screen TV, Microwave Oven, Sofa set and many other articles a customer aspires for.

This loan scheme is available to both salaried and non-salaried individuals for a sum up to Rs 1 lakh with a repayment period up to 36 months. Hypothecation of the durables will be taken as security against the loan amount. Under the scheme, the bank is offering 14.5% rate of interest and no processing fee is charged till January 31, 2013.

This loan scheme is available in all 3,600 branches of the bank. The bank has also made a provision for second loan under this scheme, even before closure of the first loan. Through the Internet banking facility the customer can check the loan liability details during the tenure of the loan, the bank said.

For the first quarter ended June 2012, Canara Bank’s outstanding advances under retail lending portfolio stood at Rs 22,848 crore, including housing loan of Rs 13,747 crore. Housing loan constituted 60.2% of the total retail-lending portfolio.

During the current fiscal, the Bank plans to expand its delivery channels by opening 325 branches and take its ATM network to over 4,000 across the country.