{"id":4756,"date":"2018-05-28T23:41:53","date_gmt":"2018-05-28T18:11:53","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?page_id=4756"},"modified":"2019-09-25T12:19:23","modified_gmt":"2019-09-25T06:49:23","slug":"canara-bank-loan-against-property","status":"publish","type":"post","link":"https:\/\/www.antworksmoney.com\/blog\/canara-bank-loan-against-property\/","title":{"rendered":"Canara Bank Loan Against Property"},"content":{"rendered":"

The\u00a0Canara bank loan against property<\/strong>\u00a0(mortgage of unencumbered property in metros or other centers) is meant to meet business\/personal financial requirements and for any capital market, real estate and speculative purposes. Canara bank offers loan against properties available in Bengaluru, Chennai, Mumbai, NCR, Chandigarh, Hyderabad, Trichy, Amritsar, Bhopal and Kolkata among others.<\/p>\n

Eligibility criteria for Canara Bank Loan against Property<\/h2>\n

The following table shows the eligibility criteria and other conditions related to\u00a0loans against property<\/a>\u00a0offered by Canara bank<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Age<\/strong><\/td>\nMinimum: 18 years<\/p>\n

Maximum: 60 years<\/td>\n<\/tr>\n

Type of borrowers<\/strong><\/td>\n\n
    \n
  • Salaried individuals (single or jointly)\/ professionals<\/li>\n
  • Self-employed<\/li>\n
  • Businessmen<\/li>\n
  • Traders<\/li>\n
  • NRIs (must have a regular source of income) with a joint resident borrower<\/li>\n
  • Firms (partnership or proprietary)<\/li>\n
  • Any company (except NBFCs)<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
Types of loan<\/strong><\/td>\n\n
    \n
  • Demand loans<\/li>\n
  • Term loans<\/li>\n
  • Overdraft facility (except individuals)<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
Loan Amount<\/strong><\/td>\nMaximum: Rs.10 crores (50% of the property valuation)<\/p>\n

Salaried individuals: Net take home salary must not be under 40% (after all deductions including EMI of this loan). Future income is not taken into account<\/p>\n

Non-salaried individuals: Loan amount (maximum) does not exceed the gross annual income for the past three years<\/td>\n<\/tr>\n

Repayment<\/strong><\/td>\n\n
    \n
  • Demand loan: 3 years<\/li>\n
  • Term loan: 7 years ( up to 10 years or 120 months on a selective basis)<\/li>\n
  • Overdraft facility: 1 year (renewable on an yearly basis)<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
Security<\/strong><\/td>\n\n
    \n
  • Unencumbered residence\/commercial property occupied by the borrower or leased out. Canara bank does not offer loan against vacant land.<\/li>\n
  • Individuals: Property mortgage and personal guarantee of owners<\/li>\n
  • Business: Property mortgage and personal guarantee of directors\/partners<\/li>\n
  • In certain cases, property already mortgaged to Canara bank can also be provided as security, subject to good track record of the borrower.<\/li>\n
  • Third party property in relatives\u2019 and spouse\u2019s name is allowed.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
Processing fees<\/strong><\/td>\n0.5%. For every renewal of overdraft facility, Canara bank charges Rs.2,000<\/td>\n<\/tr>\n
Prepayment charges<\/strong><\/td>\nNone<\/td>\n<\/tr>\n
Inspection charges<\/strong><\/td>\nMaximum: Rs.10 lakh<\/td>\n<\/tr>\n
Documentation charges<\/strong><\/td>\nRs.100 (per lakh)<\/td>\n<\/tr>\n
Miscellaneous charges (CIBIL charges, CERSAI charges, outsourcing charges, etc)<\/strong><\/td>\nTo be borne by borrower<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
<\/div>\n

Interest rates of Canara Bank Loan against Property<\/h2>\n

The following table shows the interest rates offered by\u00a0Canara bank for loans against property<\/em><\/p>\n\n\n\n\n\n
Type of category<\/strong><\/td>\nInterest rate<\/strong><\/td>\n<\/tr>\n
Business<\/p>\n

Moderate risk<\/p>\n

Normal risk<\/td>\n

Base rate+3.75%<\/p>\n

Base rate+4.5%<\/p>\n

Base rate+4%<\/td>\n<\/tr>\n

Individuals<\/td>\nBase rate+3.75%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Documentation Required for Canara Bank Loan against Property<\/h2>\n

Borrowers have to submit the following documents to avail of loans against property offered by Canara bank<\/p>\n