Canara Bank offers home loan schemes at competitive interest rates and extends various special features to its customers, such as- home loan balance transfer, no prepayment charges, minimal documentation, quick processing, and much more.
Features of Canara Bank Home Loan:
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- Individuals can avail home loan from Canara Bank for:
- Buying a fully constructed house/apartment.
- Constructing a house/apartment.
- Purchase of a plot of land for the purpose of constructing a house on it.
- For making repairs, undertaking renovation/upgradation, a creation of additional amenities, etc. The maximum loan amount provided for repairs and renovations is Rs. 15.00 Lacs.
- For acquiring a second house/apartment where the borrower is already having a house/apartment with or without loan.
- Canara Bank facilitates balance transfers from:
- Private Sector Banks/ Public Sector Banks
- NBFCs (Non-Banking Financial Companies) which are externally rated as A & above
- Individuals can avail home loan from Canara Bank for:
- Finance provided for housing needs is:
- The sum of 4 years’ gross salary for Salaried Individuals.
- The sum of 4 years’ gross annual income for self-employed individuals or businessmen.
- Loan up to 5 years’ gross salary/ income also permitted, as per Bank’s discretion.
- The maximum loan amount offered for repairs / renovations is Rs.15.00 lacs.
Individuals have to place their House/Apartment as security for availing a home loan.
Canara Bank Housing Loan Eligibility:
- Salaried individuals who have been employed for a minimum period of at least 3 years can apply.
- Businessmen, Self-employed as well as professionals who have been in the business/profession for a minimum period of 3 years, can apply.
- The applicant should not be more than 55 years old at the time of availing the loan.
- Persons above the age of 55 years are also eligible subject to certain stipulations.
Documents Required for Canara Bank House Loan:
- Duly filled loan application form
- 2 passport size photographs
- Sale Deed
- Sale Agreement
- Copy of the approved plan for the construction, extension or addition to the house.
- Cost estimate / valuation report provided by Bank’s Architect/ Chartered Engineer
- Allotment letter from the Apartment Owners’ Association / Co-operative Housing Society/
- Housing Board or NOC from the Society/ Association/ /Builders/ Housing Board
- Legal Scrutiny Report, EC for the past 13 years, and permission for mortgage, and Property
- Tax paid receipt when required.
- Salaried Individuals: Salary Certificate and Form No.16
- Non-salaried persons: Last two years’ IT Returns
- Self-Employed: A brief note in the requisite format, with details about the business, such as type of organization, year of establishment, etc.
- Self-Employed: Past three years’ Balance Sheet and P&L Account.
Canara Bank Home Loan Interest Rate:
Currently, the fixed rate of interest for housing loan is in the range of 8.65%-8.75%. The rate of interest varies as per the loan amount secured. The table given below specifies the interest rates applicable:
Rate of Interest
| Loan Amount | Rate of Interest | Interest Applicable |
|---|---|---|
| Up to Rs.75 lakh | Women Applicant – One Year MCLR + 0.20% | 8.65% |
| Other Applicants – One Year MCLR + 0.25% | 8.70% | |
| Above Rs.75 lakh | Women Applicant – One Year MCLR + 0.25% | 8.70% |
| Other Applicants – One Year MCLR + 0.30% | 8.75% |
One Year MCLR=8.45%
Canara Bank Home Loan MCLR:
The benchmark Marginal Cost of Funds-Based Lending Rate (MCLR) for home loans by Canara Bank is the 1-year rate. The Present One Year MCLR Stands at 8.45%.
| Loan Tenor | MCLR |
| Overnight | 8.15% |
| 1 month | 8.20% |
| 3 months | 8.25% |
| 6 months | 8.40% |
| 1 year | 8.45% |
Canara Bank Home Loan EMI Calculator:
In order to evaluate the overall cost of your Canara Bank home loan, you can use the online Home Loan EMI Calculator/ Home Loan Calculator tool. This will help you to better understand your Equated Monthly Installments (EMI) that will be applicable on the home loan amount availed from Canara Bank. BankBazaar.com offers an efficient and interactive Home Loan EMI Calculator that breaks down this complicated task and simplifies it. Also, this tool offers the following benefits-
- Quick and Hassle-free – You can access all details related to your home loan in an instant through the online home loan calculator. The process of EMI calculations is quick and you can get accurate results in just seconds!
- Database of Financial Information – You can collect important information about your Canara Bank Home Loan, such as the current interest rates, applicable EMI amount, amortization schedule, etc.
- Cost-free Service – BankBazaar.com offers its housing loan calculator tool absolutely free of cost.
- Plan your Expenses and Build your Budget – Try keying-in various variables until you find a tenure, EMI amount, etc. that suits your personal requirements and make a decision accordingly.
Canara Bank’s Housing Loan Scheme for Senior Citizens
As an individual gets older it gets more and more difficult to to apply for a loan as most banks do not service loans to senior citizens. Canara Bank has launched a special scheme to meet the housing finance needs of senior citizens. This scheme will allow individuals aged above 60 years to avail funds from Canara Bank for the construction of a new residence or for the renovation of an existing house at attractive interest rates and convenient repayment options. The various features, charges and interest rates associated with this scheme have been below.
Features
- Canara Bank Housing Loan Scheme for Senior Citizens may be availed by senior citizens for the construction of a new house/flat, for the purchase of a house/flat, or for the purchase of a site and the construction of house/flat thereon.
- A maximum loan amount of Rs.15 lakhs will be provided for the renovation, repairs, and upgradation of an existing house/flat.
- This scheme can be availed to take over the Home Loan liability from other private/public sector banks, and from Non-Banking Financial Companies rated ‘A’ externally.
- Senior citizens may avail this loan to purchase their second house/flat.
- This scheme is exclusively provided to applicants above the age of 60 years up to 70 years.
- The charges applicable to the Senior Citizens Housing Loan Scheme are 50% those applicable on general home loans.
Eligibility
- The applicant should be above the age of 60 years and unto 70 years of age to avail a housing loan under this scheme.
- The applicant should have a surviving spouse or an earning legal heir below the age of 55 years.
- The applicant should have maintained a pension/salary/personal/business account with Canara bank for at least a year.
Loan Amount
- Salaried Individuals:
A loan amounting to 50 times the pension/income of the individual, up to a maximum of Rs.75 lakhs subject to maintenance of 50% NTH after taking into account the EMIs of the proposed plan.
- Self-Employed/Professionals:
A loan amount to 4 times the gross annual income of the individual, up to a maximum of Rs.75 lakhs subject to maintenance of 50% NTH after taking into account the EMIs of the proposed plan.
Margin
| Loan Amount | New House/Flat | Old House/Flat Up to 10 years old | Old House/Flat Older than 10 years |
|---|---|---|---|
| Up to Rs.30 lakh | 10% | 20% | 25% |
| Above Rs.30 lakh up to Rs.75 lakh | 20% | 20% | 25% |
- In case of repairs, renovations, upgradations, etc. a standard margin of 25% will apply.
- If the loan is being availed for the purchase of a second house/flat a margin of 25% will be applicable.
- When the loan amount is Rs.10 lakhs or below the Stamp Duty, Registration Charges and other Documentation Expenses may be included in the Project Cost to fulfill the stipulated margin or to maintain the LTV Ratio. In cases where the borrower avails a loan amount exceeding Rs.10 lakhs no documentation expenses will be included in the project cost and the margin will be calculated as a percentage of the basic project cost.
- The borrower’s contribution/margin should be furnished before the disbursement of the loan. In selective cases the bank allows borrowers to pay the margin on a pro-rata or stage-wise basis.
Interest Rates
| Loan Amount | Rate of Interest | Present Interest Rates |
|---|---|---|
| Up to Rs.75 lakh | Women Applicants – One year MCLR + 0.20% | 8.65% |
| Male/Other applicant – One year MCLR + 0.25% | 8.70% |
One year MCLR=8.45%
Loan Tenure
The maximum loan tenure under this scheme is 15 years including the moratorium period ranging between 1 month and 18 months depending on the purpose of the loan, or until the applicant attains the age of 75 years, whichever is earlier.
Moratorium Period
- In case of completed flats/houses the moratorium period will last 1 month.
- In case of a fresh construction the moratorium period will last up to 18 months.
Security
The applicant will need to provide an equitable mortgage of the House Property being financed.
Guarantee
The applicant will need the provide a guarantee of a third party during application.
Charges
Processing charges will be charged at 50% of the prevailing charges on general home loans. Processing charges for general home loans is presently 0.50% of the loan amount with a minimum of Rs.1,500 and a maximum of Rs.10,000.
Canara Bank Home Loan Plus
In many cases people avail loans from Canara Bank and then realize that their expenses are more than what they estimated or decide to furnish their house, to service these needs of customers Canara Bank has introduced Canara Bank Home Loan Plus. Canara Bank Home Loan Plus allows borrowers to top up their home loan account to meet new or unforeseen expenses during the construction of purchase of a house. The special features, charges and applicable interest rates for Canara Bank Home Loan Plus have been listed below.
Features
- Canara Bank Home Loan Plus can be availed as a Personal Loan for any purpose, the bank will use its discretion to approve this facility.
- The loan can be provided as an overdraft to the borrower, the overdraft will be tenable for one year and will be renewable till the closure of the Housing Loan.
- In case the borrower decides to pre-close the existing Housing Loan he/she will need to clear the overdraft account first.
- Canara Bank Home Loan Plus may also be availed as a Term Loan.
- The applicant does not require to provide additional contribution to avail this facility.
- No additional security is required to avail this facility.
Eligibility
Existing borrowers between the of 18 to 65 years with a good repayment track record for a minimum duration of one year.
Quantum of Finance
The quantum of finance provided to the borrower under the Canara Bank Home Loan and Canara Bank Home Loan Plus shall not exceed 75% of the value of the property determined at the time of sanction of the initial Home Loan.
Rate of Interest
| Type of Loan | Rate of Interest | Present Interest Rates |
|---|---|---|
| Term Loan | One Year MCLR + 2.80% | 11.25% |
| Overdraft | One Year MCLR + 3.30% | 11.75% |
One Year MCLR=8.45%
Quantum of Finance for Salaried Individuals
- Finance under Canara Bank Home Loan Plus shall not exceed 10 months’ gross salary or Rs.25 lakhs.
- After deducing the EMIs paid towards Canara Bank Home Loan and Canara Bank Home Loan Plus the Net Take Home salary of the individual should not be less than 40%.
- In selective cases the bank may reduce the above mentioned stipulation to 25%.
Quantum of Finance for non-Salaried Individuals
The quantum of finance provided to non-salaried individuals shall not exceed 75% of their gross annual income for three years, subject to a maximum amount of Rs.25 lakhs.
Repayment in case of Term Loan
The remaining tenure of existing housing loan or 120 EMIs, whichever is lower. This is subject to the loan being cleared before the borrower attains the age of 70 years.
Canara Bank Housing Loans for Agriculturists
India is an agriculture based nation and a large majority of our population is engaged in agricultural activities or allied activities. As the income for this industry is not continuous many agriculturists find it hard to access funds for building a house. Canara Bank has launched Home Loans for Agriculturists to address the financing requirements of individuals engaged in agricultural activities across the country. The various features of this loan scheme have been discussed in detail below.
Eligibility
- Individuals owning and cultivating agricultural land more than 5 acres if irrigated or more than 10 acres of dry land.
- The agriculturalists should have 2 years of satisfactory dealings.
- Agriculturalists engaged in allied activities with a minimum gross annual income of Rs.5 lakh.
Quantum of Finance
A maximum of four times the average annual income of the individual.
Margin
| Loan Amount | New House/Flat | Old House/Flat Up to 10 years old | Old House/Flat Older than 10 years |
|---|---|---|---|
| Up to Rs.30 lakhs | 10% | 20% | 25% |
| Between Rs.30 lakh and Rs.75 lakh | 20% | 20% | 25% |
| Above Rs.75 lakh | 25% | 25% | 25% |
- For renovations, repairs, expansion of units etc. a uniform margin of 25% will be applicable.
- In case of a second house, a standard margin of 25% is applicable.
Repayment
A maximum loan tenure of 30 years or until the borrower attains the age of 65 years, whichever is earlier, will be given to the borrower. The loan can be serviced on a monthly/quarterly/semi-annually/annual basis depending on the income generation of the individual.
Security
An equitable mortgage will need to be provided as security.
Processing Charges
A nominal fee of 0.50% of the total loan amount will be charged. This amount will be a minimum of Rs.1,500 and a maximum of Rs.10,000.
Rate of Interest
| Loan Amount | Rate of Interest | Interest Applicable |
|---|---|---|
| Up to Rs.75 lakh | Women Applicant – One Year MCLR + 0.20% | 8.65% |
| Other Applicants – One Year MCLR + 0.25% | 8.70% | |
| Above Rs.75 lakh | Women Applicant – One Year MCLR + 0.25% | 8.70% |
| Other Applicants – One Year MCLR + 0.30% | 8.75% |
One Year MCLR=8.45%