Canara Bank Home Loan

July 19, 2020 by admin

Canara bank is one of the leading housing loan providers among the nationalized banks. Being a nationalized/public sector bank with attractive & affordable lowest interest rate along-with flexible repayment tenures it remains the most preferred choice among the home loan borrowers. The housing loan interest rates of Canara bank start from 6.95% p.a. with a special discounted interest rate of 6.90% for women borrowers.

The home loan with Canara bank is available for ready to buy property or under-construction builder property, for construction of house, for purchase of site and construction of loan thereon, for undertaking repairs, renovation, expansion, upgradation and creation of additional amenities, for home improvement and for loan takeovers.

Benefits of Applying Home Loan With Canara Bank

Lowest interest rate of 6.90% p.a.
No login-fees required.
Flat processing fees of 0.50% for home loans of any amount i.e. minimum Rs.1500/- and maximum Rs.10, 000/-.
Flat interest rates (as applicable) for any loan amount.
Lenient on the CIBIL scores.
Home loan available for all profiles.
Co-operative staff and personalized services.
Home loan and home loan transfers available for borrowers who have applied for moratorium during the covid-19 provided the basic requirement of minimum account balance is maintained.
Home loan available for all borrowers irrespective of their working sectors including the most affected sectors during covid19 which includes transport, aviation, tourism, hotels and restaurants, reality, construction, etc. provided the basic requirement of minimum account balance is maintained.
Flexible repayment options upto 30 years.
Pre-sanction of loan possible without having selected a property.
PMAY credit linked subsidy schemes available with subsidy upto Rs.2.67 lakhs.
Nil prepayment charges for floating interest rate home loans.

Canara Bank Home Loan Details

Being a government bank, the applicant feels secured for applying housing loan with
Canara bank. Below given are the details of Canara bank home loan.

Interest Rates:

Floating interest rates.
Interest rates start from 6.90% p.a.
Interest rates are linked to RLLR-Repo Linked Lending Rate.
Interest rates remain flat as applicable for any loan amount.
Since Canara bank is lenient on the CIBIL scores, interest rates differ with the risk grade which range from 6.90% – 8.90%.

Loan Amount: Minimum: NA, Maximum: 6x gross annual salary / gross annual income & Rs.15.00 lakhs for repairs / renovations.

Loan Tenure: Maximum up-to 30 years.

Eligibility Criteria:

Regular flow of income.
Within the age group of 21 years to 70 years.
Applicants above the age of 60 years are also eligible subject to certain stipulations.
Minimum 3 years work experience for salaried borrowers.
Minimum 3 years into business for self-employed.

Processing Fees: 0.50% on the loan amount or Rs.10,000/- whichever is low. Minimum processing fees is Rs.1,500/-.

Prepayment/Foreclosure Charges: Nil.

Loan To Value (LTV) Funding: Varies from 75%-90% depending upon the loan amount, market value of the property and the age of the property.

Home Loan Amount	LTV % (On The Market Value Of Property)
	Property Age ≤ 10 Years	Property Age > 10 Years
Upto 30lakhs	90%	75%
30lakhs – 75lakhs	80%	75%
75lakhs and above	75%	75%

Note: In case of Housing Loans where the cost of the project is upto Rs.10.00 lakhs, stamp duty, registration charges and other documentation charges can be included in the cost of the project for the purpose LTV ratio.

Documents Required: KYC, income documents and property papers. Additional LOD (list of documents), Outstanding Letter and 12 months repayment track record are required in case of home loan balance transfers.

KYC	Pan Card, Adhar Card & Photograph
Income Documents
For Salaried	4 months Salary Slips, 6 months Bank Account Statement, 2 years From 16.
For Self-Employed	3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified with membership no. and UDIN No.
Property Papers	Prior Chain of Agreement, OC/CC + approved plans, Index 2, Share Certificate, Society Registration Copy, Property Tax.

Click for Home Loan documentations – For Salaried resale case & builder case, For Self-Employed- Proprietorship Firm resale case & builder case, Private Limited Company resale case & builder case, Partnership Firm resale case & builder case, NRI.

Click for Home Loan Balance Transfer documentations – For Salaried, For Self-Employed- Proprietorship Firm, Private Limited Company, Partnership Firm.

CLICK

TO TRANSFER YOUR HIGH INTEREST RATE HOME LOAN @ 6.90%p.a.

Canara Bank Eligibility Calculation

Canara bank keeps the eligibility calculation simple. 4 times of gross annual salary/gross annual income is the income eligibility of the borrower. At times 6 times of the gross annual income/salary may be considered for enhancement of the eligibility. The formula for calculation of the borrower’s income eligibility is as follows:

For Salaried Borrower
Gross Annual Salary as per ITR X 4
(4 times gross annual Salary as per ITR/ITAO of the concluded financial year).

For Self-Employed Borrower
Average Gross annual Income of 4 years X 4
(4 times of average gross annual income of all the four years in the case of individuals engaged in business or self-employed persons subject to production of documentary evidence regarding the gross annual income.)

Loan eligibility can be enhanced by adding income from other sources and by adding eligible income of the co-applicant.

Additional Read: What Do You Mean By Loan Eligibility In Home Loan?

CLICK TO CALCULATE YOUR EMI

Canara Bank Home Loan Schemes

Canara bank has a range of home loans to meet the requirements of borrowers. These are: Canara Housing Loan, Home Improvement Loan, Canara Site Loan, Canara Home Loan Plus, and Canara Home Loan For NRIs. Home loan interest rates of the bank are linked to RLLR – Repo Linked Lending Rate. RLLR of the bank is 6.90% w.e.f. 07.07.2020. The interest rates differ with the risk grade and range from 6.90% – 8.90%.

1) Canara Housing Loan

Canara housing loan is available for multiple purposes for purchasing a house,constructing a house, purchasing a plot, and renovating a house. It is available for borrowers with stable employment/business and income for at least 3 years. Special discounted interest rates are available for women borrowers. Below given is the interest grid for women borrowers and other borrowers according to their risk grade as on July 16, 2020.

CIC- Risk Grade	RLLR	Women Borrowers	Other Borrowers
		Credit Risk Premium Over RLLR	Effective ROI Under RLLR	Credit Risk Premium Over RLLR	Effective ROI Under RLLR
CS: 1	6.90%	0.00%	6.90%	0.05%	6.95%
CS: 2	6.90%	0.05%	6.95%	0.10%	7%
CS: 3	6.90%	0.45%	7.35%	0.50%	7.40%
CS: 4	6.90%	1.95%	8.85%	2.00%	8.90%
Note: For Housing loans under Commercial Real Estate (3rd & subsequent dwelling unit) the applicable rate shall be the above rate +0.50%

Note: Interest rates are subject to change as per RBI’s discretion without prior notice.

COMPARE HOUSING LOAN INTEREST OF TOP BANKS

2) Canara Site Loan

Canara site loan is a loan scheme available for borrowers for purchasing of housing sites from State Development/Town Planning Development authorities, Central and State Governments local authorities either exclusively or in partnership with private sector entities, or from any other body constituted by the Government for distribution of sites provided such layouts are duly approved by the concerned statutory authority. Additional housing loan can be taken for construction of house on the site. Takeover of loan is also allowed under this scheme provided the original loan is sanctioned for the mentioned purposes.

Eligibility: – Maximum age upto 60 years.
Eligible Applicant: – Salaried, Self-employed, Professionals & NRI.
Eligible Loan Amount: – Four years gross Annual salary/income OR 75% of the cost of the site/guideline value (whichever is less).
Repayment Tenure: – Whichever is earlier of
– 10 Years OR
– Maximum period permitted by the allotment agency for construction of house OR
– upto 65 years of the borrower at the time of closure of loan.
Processing Fee: – 0.50% of the loan amount subject to a minimum of Rs.1,500/- and maximum of Rs.10,000/-.
Interest Rate: – Range from 7.95% – 9% p.a.

CIC- Risk Grade	RLLR	Credit Risk Premium Over RLLR	Effective ROI Under RLLR
CS: 1	6.90%	1.05%	7.95%
CS: 2	6.90%	1.10%	8%
CS: 3	6.90%	1.60%	8.50%
CS: 4	6.90%	2.10%	9.00%

Note: Interest rates are subject to change as per RBI’s discretion without prior notice.

3) Home Improvement Loan

Home improvement loan is a loan scheme available for purchase of household appliances and for furnishing the house, such as refrigerator, fans, air conditioner/s, to put up wardrobes, etc.

Eligible Applicant: –
– Salaried, Self-employed, Professionals & NRI.
– Salaried minimum net take home salary should be 25% of the gross salary or Rs.2000/- after the deduction of EMI.
– Self-employed & Professional should have a minimum annual income of Rs.50,000/-.
Eligible Loan Amount: – 1 year’s gross salary / income subject to maximum loan amount of Rs.2 lakhs.
Repayment Tenure: – Maximum upto 5 years.
Processing Fee: – 0.5% of the loan amount subject to a minimum of Rs. 1500/- and maximum of Rs. 10000/-.
Loan Disbursement: –
– Loan amount is disbursed only after acquiring a ready built house or after completion of house construction or after completion of repairs & renovations, etc. – when the loan is availed along with a housing loan.
– Loan amount is disbursed against proforma invoice, etc. – when the loan is not availed along with a housing loan.
Interest Rate: – Range from 9.40% – 11.45% p.a.

CIC- Risk Grade	RLLR	Credit Risk Premium Over RLLR	Effective ROI Under RLLR
CS: 1	6.90%	2.50%	9.40%
CS: 2	6.90%	2.55%	9.45%
CS: 3	6.90%	3.05%	9.95%
CS: 4	6.90%	4.55%	11.45%

Note: Interest rates are subject to change as per RBI’s discretion without prior notice.

4) Canara Home Loan Plus

Canara home loan plus is a top-up facility available only for the existing housing loan borrowers of Canara bank who are having a satisfactory repayment track record for at least 1 year. The loan is available in the form of term loan of up to 10 years as well as overdraft of up to 3 years.

Eligibility: – Minimum age is 18 years and Maximum upto 60 years.
Eligible Applicant: – Only existing housing loan borrower having satisfactory repayment track record for at least 1 year.
Eligible Loan Amount: – Loan amount is subject to 75% LTV on the valuation of the property.
For Salaried – Loan amount is limited to 10 months gross salary subject to maximum Rs.25 lakhs.
(Pre-condition- net take home salary shall not be less than 40%)
For Self-employed – Loan amount is limited to 75% of 3 years gross income subject to maximum of Rs.25 lakhs.

Repayment Tenure: –
For Term Loan – Remaining repayment period of existing housing loan or 120 EMIs, whichever is less. (Subject the loan is closed before 70 years of the age of the borrower).
For Overdraft – 3 years.

Processing Fee: – 0.50% of loan amount subject to a minimum of Rs.100/- and maximum of Rs.500/-.
Interest Rate: – Range from 7.45% – 9.50% p.a.

CIC- Risk Grade	RLLR	Credit Risk Premium Over RLLR	Effective ROI Under RLLR
CS: 1	6.90%	0.55%	7.45%
CS: 2	6.90%	0.60%	7.50%
CS: 3	6.90%	1.10%	8%
CS: 4	6.90%	2.60%	9.50%

Note: Interest rates are subject to change as per RBI’s discretion without prior notice.

5) Canara Home Loan For NRIs

Canara bank home loan is available for NRIs with a valid Indian passport. NRI home loan is available for purchase of ready built house, for construction of house, purchase of site and construction of house (subject to purchase of plot is restricted to 60% of the sanctioned loan amount), for undertaking repairs, renovation, expansion, upgradation and creation of additional amenities and balance transfer of home loan.

Eligibility: –
– Minimum age is 18 years and Maximum upto 60 years.
– Must have NRI status for 3 years.
– Must have a valid Indian passport or foreign passports for PIO i.e. person of Indian origin.
– Must have a steady source of income.
– Must have 2 years minimum job experience with valid job contract and work permit.
Eligible Loan Amount: – Minimum: NA, Maximum: 6x gross annual salary / gross annual income & Rs.15.00 lakhs for repairs / renovations.
Repayment Tenure: – Upto 30 years.
Processing Fees: – 0.10% of loan amount subject to a minimum of Rs.500/- and maximum of Rs.10,000/-.
Prepayment/Foreclosure Charges: – Nil.
LTV Funding: – Varies from 75%-90% depending upon the loan amount, market value of the property and the age of the property.

Home Loan Amount	New Property	LTV % (On The Market Value Of Property)
		Property Age ≤ 10 Years	Property Age > 10 Years
Upto 30lakhs	90%	80%	75%
30lakhs – 75lakhs	80%	80%	75%
75lakhs and above	75%	75%	75%

Documents Required: – Click to know NRI List Of Documents For Applying Home Loan.
Interest Rates: – Range from 6.90% – 8.90%. Interest rates vary according to the risk grade.

CIC- Risk Grade	RLLR	Women Borrowers	Other Borrowers
		Credit Risk Premium Over RLLR	Effective ROI Under RLLR	Credit Risk Premium Over RLLR	Effective ROI Under RLLR
CS: 1	6.90%	0.00%	6.90%	0.05%	6.95%
CS: 2	6.90%	0.05%	6.95%	0.10%	7%
CS: 3	6.90%	0.45%	7.35%	0.50%	7.40%
CS: 4	6.90%	1.95%	8.85%	2.00%	8.90%
Note: For Housing loans under Commercial Real Estate (3rd & subsequent dwelling unit) the applicable rate shall be the above rate +0.50%

Note: Interest rates are subject to change as per RBI’s discretion without prior notice.

Additional Read: Everything You Must Know About NRI Home Loans

Speak to our experts on 9321020476 or log on to https://www.loanfasttrack.com/ for additional details. You can also email on info@loanfasttrack.com.

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