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Canara Bank is one of the leading public sector banks in India. Established in Mangalore back in 1906 by Ammembai Subha Rao Pai, the bank was nationalized eventually in the year 1968. It boasts of a strong network of 6310 branches and nearly 8851 ATMs across the nation. Canara Bank is presently headquartered in Bengaluru with international offices set up in London, Moscow, Shanghai, Hong Kong, Dubai, Tanzania, and also New York.

Canara bank offers a variety of loan products to millions of customers. A loan comes in the form of financial assistance from banks or financial institutions in return for a commitment to make repayment of the principal loan amount along with interest. Since most lenders have to bear the risk of a potential default, they often charge a small fee for offsetting such risk. This fee is also known as interest. Some of the loan categories offered by Canara bank include home loans, personal loans, car loans, education loans, business loans, etc. In this information page, we will help you with all the details surrounding the repayment of Canara Bank loans.

Understanding Loan Repayment

Let’s start by understanding the concept of loan repayment. In simple terms, it is paying back borrowed money to the concerned lending institution. The repayment can be done in the form of a series of scheduled payments, often known as EMIs. This payment must include both principal and interest components.

How does loan repayment work?

Loan repayment is normally made through Equated Monthly Instalments (EMIs). EMIs are the portion of the money that is being repaid every month to the lending institution. It has two components – the principal and the interest charged on the principal due. It has to be paid to the bank every month on a pre-decided or fixed date till the entire loan amount due is paid within the loan tenure.

It is incorrect to assume that in any EMI, the principal and interest would be divided equally. This is generally not the case. At the beginning of any loan tenure, the interest portion in an EMI is often higher. As the loan tenure progresses, the interest component starts coming down, and the principal amount is higher.

Loan borrowers must take the repayment seriously as it will help them to reduce their loan liability and save on the accrued interest. A steady loan repayment gets reflected in an individual’s credit history. Failure to make timely loan repayments may lead to long-term implications on overall credit health which gets reflected in respective credit history.

Common Repayment Modes

Here are the common loan repayment options available for loan borrowers. The loan repayment options provided to borrowers may differ as per the lender’s terms and the loan category that has been applied for:

1. EMIs – Equated Monthly Instalments or EMIs, are one of the most commonly used loan repayment options. Each instalment comprises a part of the principal amount and a portion of the interest component. EMIs are scheduled for payment every month over a pre-decided fixed loan tenure.

Some banks also let their borrowers make pre-payment of the loan after some instalments have been paid. Some lending institutions charge a prepayment fee, in case this option is chosen. Here is how one can make Pre-payment of the loan:

  • Part Pre-Payment: When a loan borrower pays off the loan in part, it brings down the principal amount. This helps to save on the interest since it is applied to the remaining principal amount.
  • Full Prepayment or Pre-Closure: When a borrower completely pays off the loan before the end of the loan tenure, it is called full prepayment or pre-closure of the loan.

2. Bullet Repayment – Some banks allow repayment of a loan by making bullet loan repayment. Under this option, one has to pay only the interest portion every month. At the end of the loan tenure, the borrower has to make one bullet repayment which pays off the outstanding principal or entire principal amount.

What is the repayment calculator and how to use it?

The loan repayment calculator is used to calculate the monthly loan repayment amount from the total loan. All you have to do is plug in the total loan amount, the loan duration and applicable interest rate. Here is how to use a loan calculator available online:

Using a loan calculator is very simple. Enter the below-mentioned details to get going:

1. Loan amount 

2. Loan tenure 

3. Rate of interest

4. The total number of EMIs already paid

5. The foreclose month for the loan

Repayment of Personal Loans at Canara Bank

If you have taken a personal loan from Canara bank and are wondering how to go about repaying the same, here is all you need to know about personal loan repayment. Here are the three common ways in which you can repay a Canara Bank personal loan:

  • Standing Instruction (SI): For an existing account holder with Canara bank, choosing Standing Instruction is one of the easiest modes of repayment. Under this mode, the EMI amount gets automatically debited from your account at the end of the month or as per the pre-fixed date.
  • Post-Dated Cheques (PDCs): Another repayment alternative is to submit post-dated cheques towards EMI payment. For this loan repayment to go smoothly, you must ensure to furnish fresh PDCs promptly. Post Dated Cheques are only collected in non-ECS locations as far as Canara Bank is concerned.
  • Electronic Clearing Service (ECS): This repayment method can be used by customers who do not have a Canara Bank account and would like their EMIs to be automatically debited during the monthly cycle from the stated account.

Repayment of Home Loans at Canara Bank

EMI is the easiest option when it comes to home loans from Canara bank. This is because of the reasonable interest rates offered by the bank which do not pose a burden to the borrowers. EMI repayment can be made online through the bank’s portal or offline by visiting the respective bank branch.

Home loans borrowed from Canara bank can be repaid in EMIs or by foreclosure, depending on one’s financial capability. Foreclosure is the payment of the remaining loan amount in one go instead of in EMIs. The bank allows borrowers to make foreclosure before the scheduled or pre-decided EMI period ends.

Repayment of Car/Two-Wheeler Loans at Canara Bank

Canara Bank offers a convenient repayment schedule to those who have borrowed a car or two-wheeler loan from the bank. In case of loan for new cars, the loan tenure is set at 84 months. For used car loans, however, the loan tenure can be up to 60 months.

Repayment of Gold Loans at Canara Bank

Canara Bank gold loans can be repaid in entirety within 12 months from the date of loan sanction. Repayment can be made as a bullet payment combined with interest.

Interest on gold loans is accrued at monthly rates compounded. However, it is due for payment combined with the principal at the time of loan maturity.

  • Swarna Overdraft: This facility under gold loans from Canara bank comes with a tenure of 2 Years.
  • Swarna Express: This loan can be availed with a tenure of 6 months and can be repaid as Bullet Repayment.

Repayment of Business Loans at Canara Bank

Repayment of Canara Bank business loans can be done in the following ways:

Standing Instruction (SI): Standing instructions is an ideal way to ensure EMI payments are done on time. This is if you have an existing account with the bank. The noted EMI amount gets automatically debited from the Canara bank account as the monthly cycle comes to an end. This way, you do not have to remember about making manual monthly payments.

Electronic Clearing Service (ECS): This mode of repayment is popular among those who do not have an account with the bank. It involves giving the bank permission to automatically withdraw money from the specified account each month.

Post-Dated Cheques (PDCs): These can be pre-submitted to the bank for the loan tenure. The bank will deposit these cheques as per the details provided by the borrower. The bank may lose the cheques furnished in advance, hence a back-up plan is needed under this approach.

Repayment of Education Loans at Canara Bank

For borrowers who have opted for an education loan from Canara bank, it is easy to make monthly repayments through EMIs. A fixed amount has to be paid every month to the bank for the loan taken. The date on which the payment has to be made is also pre-decided as per the terms laid out by the bank.

Borrowers can use a repayment calculator to calculate the monthly EMI amount according to the loan that has been applied for. After mentioning the total loan amount, the interest charged and the loan tenure also has to be stated. The loan has to be repaid within a maximum tenure of 15 years. This excludes the moratorium period granted.


1. What is loan repayment?

Loan repayment happens when a borrower pays back the borrowed loan to the lending institution. The repayment takes place through a set of scheduled payments, also referred to as EMIs. Repayment, in most cases, includes principal and interest amount.

2. Can loan repayment have an impact on credit health?

A borrower’s repayment history has a direct impact on his or her credit health. A positive repayment history means that one has made timely repayments and not missed any loan instalments. Many borrowers do not know their credit history and also the fact that one bank’s credit history records are visible to other lenders from the credit report.

3. Can loan repayment help in improving one’s credit health?

Irregular repayments can adversely affect the credit health of a borrower. However, timely loan repayments can help in building a good credit history. In case the credit health is in a poor state, timely repayments can also help in rebuilding it or reinstating the credit health back to normal.

4. What repayment modes can I use for repayment of personal loans from Canara Bank?

If you have borrowed a personal loan from Canara Bank, you can repay the loan in equal monthly instalments (EMIs). The loan repayment can be made by using post-dated cheques. The bank also offers the option to make repayment through Electronic Clearing System (ECS) or provide a standing instruction for debiting a Canara Bank account for the respective EMI amount.

5. What if I delay my Canara bank loan repayment during the current Covid-19 situation?

Canara bank has offered all its customers the mandated moratorium considering the pandemic situation. However, beyond the moratorium, you must ensure to make timely repayments, in the absence of which, your credit score may be impacted.

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