Canara Bank Home Loan

Canara bank offers a wide range of home loans at attractive interest rates. There are certain schemes for NRIs as well. The bank offers loans for various purposes that include the purchase of a house/flat/site/construction of a house over your site or undertaking house repairs/renovation/improvement and up-gradation. It can also be used for acquiring a second house/flat where the borrower is having a home with/without a loan.

 

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Features and Benefits of Canara Bank Home Loans

• Available for salaried/self-employed/professional individuals.

• Repayment tenure of up to 30 years/until you turn 70 years old.

• Loan sanction up to 4x or 6x gross annual income.

• Repayment holiday of up to 3 years for under-construction flats.

• A loan up to Rs. 15 lakh can be sanctioned for renovation and repairs.

• Most schemes are also available for a balance transfer at no prepayment penalty for floating rate schemes.

• LTV starts from 90% for small-ticket borrowings.

• Pradhan Mantri Awas Yojna scheme is made available for eligible borrowers.

Interest Rates and Other Fees

Loan Type	Women Borrowers			Others
	Low-Risk Category	Other Categories		Low-Risk Category	Other Categories
Housing Loan Housing Loan to Agriculturists, Housing Loan to NRIs, Yuva Awas RIN, Housing Loan to senior Citizens, PMAY, Housing cum Solar Loan	8.70%	Up to 30 Lakhs	8.75%	8.70%	Up to 30 Lakhs	8.70%
		30-75 Lakhs	8.85%		30-75 Lakhs	8.80%
		Above 75 Lakhs	8.90%		Above 75 Lakhs	8.90%
Housing Loan CRE (3rd and subsequent dwelling unit)	9.20%	Up to 30 Lakhs	9.25%	9.20%	Up to 30 Lakhs	9.30%
		30-75 Lakhs	9.35%		30-75 Lakhs	9.40%
		Above 75 Lakhs	9.40%		Above 75 Lakhs	9.45%
Home Improvement Loan	11.15%			11.15%
Canara Home Loan Plus	9.20% (Term Loan)			9.20%  (Term Loan)
	9.70% (Overdraft)			9.70% (Overdraft)

Processing Charges: 0.50% of the loan amount or minimum Rs.1500/- and maximum Rs.10,000/- is charged. 

Technical and Legal Charges: Canara Bank also imposes technical and legal charges that are explained to the customer during the loan process. 

Prepayment Charges: No prepayment charges for a floating rate of interest.

Types of Canara Bank Home Loans

Housing Loan

Canara Bank Housing Loan is made available for purchase/construction of a ready-built house/flat, for purchase of site and construction of the house (for composite Housing loans, utilization of loan amount for the plot is restricted to 60% of the eligible amount), for undertaking repairs/renovation/expansion/up gradation/creation of additional amenities, and for acquiring second house/flat if the borrower already has a house/flat with or without a loan.

Eligibility

• A minimum service of 3 years for salaried individuals/self-employed

• A limit of Rs. 15.00 Lakhs in case of repairs/renovations

• Individuals must be between 21 and 60 years of age

• Persons above 60 years of age are also eligible subject to certain stipulations

• Decent credit score

Housing Loan to Agriculturists

A housing Loan to agriculturists is a tailor-made loan for individuals who are engaged in allied activities like dairy/poultry, planters, horticulturists, etc. Repayment can be done in convenient equated monthly installments for up to 30 years or for borrowers attaining the age of 70 years, whichever is earlier.

Eligibility

• All agriculturists cultivate and own an agricultural land of more than 5 acres of irrigated land/10 acres of dry land with 2 years of satisfactory dealing.

• A minimum gross annual income of 5 lakhs for those who are engaged in allied activities.

Housing Loan to NRIs

Canara Bank Housing Loan to NRIs is made available for purchase/construction of a ready-built house/flat, for purchase of site and construction of the house (for composite housing loans, utilization of loan amount for the plot is restricted to 60% of the eligible amount), for undertaking repairs/renovation/expansion/up gradation/creation of additional amenities, and for acquiring second house/flat if the borrower already has a house/flat with or without a loan.

Eligibility

• Applicant should have an NRI status for a minimum of 3 years.

• All NRIs having a valid Indian passport and Persons of Indian origin (PIO) having a foreign passport.

• Individuals must be between 21 and 60 years of age.

• Spouse/close relatives of NRIs who are Indian residents can join NRI as Joint applicants.

• Employment in abroad for a minimum period of 2 years with a valid job contract/work permit.

• Repayment can be done through EMIs for a maximum period of 30 years or upto 60 years of borrower’s age, whichever is earlier.

Yuva Awas RIN - CANYAR

Yuva Awas RIN Housing Loan is made available for the purchase/construction of a ready-built house/flat, for purchase of site and construction of the house (for composite housing loans, utilization of loan amount for the plot is restricted to 60% of the eligible amount), for undertaking repairs/renovation/expansion/upgradation/creation of additional amenities, and for acquiring second house/flat if the borrower already has a house/flat with or without a loan.

Eligibility

• Salaried youth between 21-45 years of age with 2 years of confirmed service working for State Govts./Central Govt./Reputed PSUs/Reputed Corporates/Joint Stock Companies/Public Limited Companies/IT Companies/Private Institutions/BT Companies or working as Lecturers/Professors in Colleges/Asst. Professors/Research Institutes and Universities.

• Repayment can be done through EMIs with a maximum tenure of 30 years or up to 70 years of age, whichever is earlier.

PMAY – Pradhan Mantri Awas Yojana

Canara bank offers CLSS for Economical Weaker Section, Lower Income Group, and Middle Income Group categories under Pradhan Mantri Awas Yojana.

Credit Linked Subsidy Scheme (CLSS) is introduced by the Ministry of Housing & Urban Poverty Alleviation (MoHUPA), which was announced by Prime Minister Narendra Modi, with a vision of housing for all by 2022.

Under PMAY scheme, the beneficiary is eligible to avail interest subsidy on the purchase/construction/enhancement of a house.

Eligibility

• Available for Individuals only.

• Age should be above 18 years.

• Applicants should be of immediate family including self/spouse/unmarried children only.

• Annual combined income must be up to Rs. 6 lakhs for EWS & LIG category, Rs. 6.01 Lakhs to Rs. 12 Lakhs for MIG1 and Rs. 12.01 Lakhs to 18 lakhs for MIG2.

• Renovation/extension must be used to convert kuccha house to a pucca house.

• The beneficiary family must not own a pucca house in his/her/in the name of any member of his/her family in any part of India.

• The beneficiary family should not have availed any of the housing schemes from the Government of India.

Housing cum Solar Loan

Housing cum Solar Loan is offered to individuals for Grid-connected Roof Top Solar Photovoltaic (PV) System installation on the rooftop of the house as a part of Home Loan/without Housing Loan. Purchase/construction of flats is not permitted under this scheme.

Eligibility

• Salaried/self-employed individuals with a minimum service of 3 years.

• The age must be less than 60 years.

• NTH (Net Take Home) must be 25%.

• Should have a rooftop to install the Solar Equipment.

• Repayment can be done through EMIs with a maximum tenure of 20 Years or the period stipulated under Housing Loan, whichever is earlier.

Home Improvement Loan

Home Improvement Loan is offered to those who want to purchase household furniture, refrigerator, fans, air conditioners, wardrobes or any other household items.

Eligibility

• Salaried individuals/businessmen/professionals/self-employed who own a house/flat. NRIs are also eligible.

• Salaried individuals must have a minimum monthly net income of 25% of their gross salary or Rs. 2000/- after meeting the loan installments for the proposed loan.

• Professionals/businessmen/self-employed persons should must a minimum annual income of Rs. 50000/-..

• Repayment can be done through convenient EMIs of upto 60 months or borrower attaining the age of 70 years, whichever is earlier.

Canara Home Loan Plus

Canara Home Loan Plus is offered for any purpose other than speculative purposes.

Eligibility

• Individuals must be between 18 to 65 years, with a satisfactory repayment record for at least one year.

• Repayment can be made in 120 EMIs or period or borrower attaining the age of 70 years,  whichever is earlier.

How to Apply for Canara Bank Home Loans

Online Method (Through mymoneykarma for Balance Transfer and Top-up Loans)

• Visit mymoneykarma Home Loans Portal.

• Fill in your name, email address, and phone number.

• Our customer care executive will get in touch will you and give you the best and the lower interest rate schemes.

• After you select the bank you want to transfer to, an executive will be sent to your home/office to collect the required documents.

• After verification, your loan will be approved.

Offline Method (through branch)

• Visit the nearest Canara bank branch.

• Fill in the home loan application form.

• Submit the form along with the required documents.

• Your documents will be verified by the bank.

• Generally, it can take up to 30 days for the application to be processed and approved/rejected.

Documents Required for Canara Bank Home Loan

For Salaried Employees:

• Proof of Identity and Residence

  • Passport

  • Aadhaar Card

  • Driving License

  • Voter ID

• Proof of Income 

  • 3 months pay slip

  • Latest Form 16 and IT returns

  • 6 months bank statement showing salary credits

• Property related documents

  • Receipts of payments made to the developer

  • Copy of the allotment letter/buyer agreement

  • Title deeds of the plot  

  • Copy of the plans, approved by the local authorities

  • Proof of no encumbrances on the property

  • Construction estimate by an Architect/Civil engineer

• Other documents

  • Own contribution proof

  • Employment contract/appointment letter if current employment is less than a year old

  • Passport-size photograph of the applicants/co-applicants must be affixed on the Application form and signed across

  • 6 months Bank Statements that show the repayment of any ongoing loans

  • A cheque for processing fee favoring Canara Bank

For Self-employed:

• Proof of Identity and Residence

  • Passport

  • Aadhaar Card

  • Driving License

  • Voter ID

• Proof of Income 

  • Income Tax Returns along with computation of income for the last 3 Assessment Years (of the individual and the business entity attested by a CA)

  • Last 3 years’ balance sheet and profit & loss a/c statements, with annexures/schedules (of the individual and the business entity attested by a CA)

  • 6 months savings account statements of the individual.

  • 6 months savings account statements of the business.

• Property related documents

  • Receipts of payments made to the developer

  • Copy of the Allotment Letter/Buyer Agreement

  • Title Deeds of the Plot  

  • Copy of the plans, approved by the local authorities

  • Proof of no encumbrances on the property

  • Construction estimate by an architect/civil engineer

• Other documents

  • Latest Form 26 AS

  • Own contribution proof

  • Business Profile

  • Partnership deed for a business entity that is a partnership firm

  • Memorandum and Articles of Association of the Company

  • List of directors and shareholders with their individual shareholding that is certified by a CS/CA in case of the business entity being a company

  • Passport-size photograph of the applicants/co-applicants must be affixed on the application form and signed across

  • Details of ongoing loans of the business entity and the individual including the installments, outstanding amount, security, purpose, balance loan term, etc.

  • A cheque for processing fee favoring Canara Bank.

For NRIs:

• Identification documents

  • Passport size photograph

  • Copy of Passport

  • Photocopy of valid permanent resident card/valid visa (if Indian passport)/valid Work Permit.

  • Photocopy of address proof (recent bank statement/utility bill)

  • Postpaid bill if the landline is not available

  • Photocopy of PAN card

  • Signature proof (any of the above KYC documents)

  • KYC of local co-applicant in India (ID proof, address proof, sign proof) and should be in a mortgage location.

• Income documents:

  • last 3 months salary slips with corresponding bank credits established through bank statements.

  • Last 2 years B4/P60/IR8/employment contract/work contract/certificate for last 2 years.

  • Last 3 months bank statement.

  • Bank statement/loan statement confirming EMIs running (both for loans in India/abroad) for loan eligibility calculation purposes (in addition to salary a/c statement if other loans are running.)

• Property documents:

  • Copy of latest Sale Deed with chain-link allotment letter.

  • Payment plan and receipts in case of property that is under construction.

  • Agreement of sale, sanction plans, tax paid receipts, chain link title papers, etc. in case the property is ready.

Canara Bank Home Loan Eligibility Based on Property You may not receive the entire property value when you apply for a loan. Below is the maximum home loan that can be sanctioned based on the value of the property:     Loan Amount Old House/Flat   New House/Flat Up to 10 years old Greater than 10 years old Up to 30 lakhs 80% 75% 90% 30 Lakhs to 75 lakhs 80% 75% 80% More than 75 lakhs 75% 75% 75% Canara Bank Home Loan Eligibility based on the Salary The table given below shows the approximate loan amount that can be sanctioned based on the age, and maximum loan tenure. The EMI amount is between 40%-65% of the Net Income or in-hand income. In this table, the EMI is taken as 65% of the Net Income and the rate of interest is taken as 8.70%. Age MaximumLoan Tenure Loan amount (in Lakhs) for Salary (25,000) Loan amount (in Lakhs) for Salary (50,000) Loan amount (in Lakhs) for Salary (75,000) Loan amount (in Lakhs) for Salary (1,00,000) 25 years 30 years 20.75 41.50 62.25 83.00 30 years 30 years 20.75 41.50 62.25 83.00 35 years 25 years 19.84 39.69 59.54 79.38 40 years 20 years 18.45 36.90 55.36 73.81 45 years 15 years 16.30 32.61 48.92 65.22 50 years 10 years 12.99 25.98 38.98 51.97 How to Calculate Home Loan EMI There are a lot of EMI calculators available online. You can calculate the Home Loan EMI here at mymoneykarma. Top Banks Offering Lowest Home Loan Interest Rate in 2019 Home Loan Provider Home Loan Interest Rates Processing Fees Prepayment Charges Yes Bank 9.85%  0.5% of loan amt. or Rs.10,000 whichever is higher (+GST) NIL for floating rate loans SBI 8.55% Rs. 0 – 10,000 NIL HDFC Bank 8.65%  Up to 0.5% of loan amt NIL ICICI Bank 8.80%  0.5% – 1.00% of loan amt. NIL PNB Housing Finance 9.10%  Up to 1% of loan amt NIL Axis Bank 8.90%   Up to 1% of loan amt NIL IDBI Bank 8.75% 0.5% of the loan amount NIL Punjab National Bank 9.05% Nil NIL Canara Bank 8.70% Varies based on applicant profile NIL Bank of Baroda 8.70% - 9.70% 0.25-0.50% Nil for floating rate loans Kotak Bank 8.90% - 8.75% Maximum 2% of the loan amount + GST( it varies as per the loan amount) 6% of the foreclosure loan amount within one year and 5% plus GST otherwise. IndusInd Bank 9.50% Up to 2% NIL RBL Bank 10.45-11.80% Rs. 5000-15000 Nil for floating rate loans Andhra Bank 8.75% 0.5% of the loan amount NIL