Why pay rent monthly when you can easily own your very own small space by paying cheap EMIs? Purchasing a house is one of the significant financial decisions one has to make in their life. But with the ideal home loan scheme you can't just appreciate the pride of owning a long-term advantage of fantastic price, but also reap significant tax benefits.
Canara Bank offers home loan schemes at competitive interest rates and extends various special characteristics to its clients, such as- home loan balance transfer, no prepayment fees, minimal documentation, fast processing, plus a whole lot more.
Interest Rates on Canara Bank Home Loan
Canara Bank Home Loan Details
| Interest Rate |
8.35% to 8.55% |
| Processing Fees |
Nominal processing fee of 0.50% (Min Rs.1500/- and Max. Rs.10,000/-) |
| Loan Tenure |
30 Years |
| Pre-closure Charges |
Nil |
| Guarantor Requirement |
No Guarantor Required |
Canara Bank Home Loan Features:
Eligibility criteria for Canara Bank Housing Loan:
- Individuals with salary income 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 decades, can apply.
- The applicant shouldn't be over 55 years old at the time of availing the loan.
- Persons above the age of 55 years are eligible subject to certain stipulations.
Documents Required for Canara Bank House Loan:
- Duly filled loan application form
- Two passport size photographs
- Sale Deed
- Sale Agreement
- Copy of the accepted plan for the construction, extension or addition to the home.
- Price 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 in the Society/ Association/ /Builders/ Housing Board
- Legal Scrutiny Report, EC for the last 13 years, and permission to get mortgage, and Property
- Tax paid receipt when demanded.
- Salaried Individuals: Salary Certificate and Form No.16
- Non-salaried men: Last two years' IT Returns
- Self-Employed: A brief note in the necessary format, with details about the business, such as type of company, year of establishment, etc..
- Self-Employed: Beyond three years' Balance Sheet and P&L Account.
Interest Rates of Canara Bank Home Loan :
Currently, the fixed rate of interest for housing loan is at the range of 8.70%-8.90%. The interest rate varies as per the loan amount secured. The table below defines the interest rates related:
| Up to Rs. 30 Lakhs |
Women Borrowers - One year MCLR+ 0.05% |
8.70% |
| Other Borrowers - One year MCLR+ 0.10% |
8.75% |
| Above Rs 30 Lakhs & Upto Rs. 75 Lakhs |
Women Borrowers – One year MCLR+ 0.15% |
8.80% |
| Other Borrowers - One year MCLR+ 0.20% |
8.85% |
| Above Rs.75 Lakhs |
Women Borrowers – One year MCLR+ 0.20% |
8.85% |
| Other Borrowers - One year MCLR+ 0.25% |
8.90% |
One Year MCLR=8.70%
MCLR of Canara Bank Home Loan :
The benchmark Marginal Cost of Funds-Based Lending Rate (MCLR) for home loans from Canara Bank is your 1-year pace. The Current One Year MCLR Stands at 8.70%.
| Overnight |
8.20% |
| 1 month |
8.25% |
| 3 months |
8.40% |
| 6 months |
8.50% |
| 1 year |
8.70% |
Pradhan Mantri Awas Yojana By Canara Bank
Goal of This PMAY Scheme:
Construction of house, buy of flat/house or purchase of under construction flats.
Repair work or extension work like addition of bathroom, kitchen, rooms, etc. into the present kucha unit to ensure it is a pucca house for LIG/EWS beneficiaries.
Eligibility for Applying PMAY Scheme:
- The beneficiary has to be between the ages of 21 decades and 55 decades.
- The yearly earnings for your EWS (Economically Weaker Sections) beneficiaries could be around Rs.3 lakh. In the event of this LIG (Lower Income Group) beneficiaries, family income could be involving Rs.3 lakh and Rs.6 lakh, yearly.
- As income evidence, midsize beneficiaries should submit their wages slips, salary certification, form 16, etc.. The self-employed beneficiaries should submit self-declared revenue certification for an yearly income of around Rs.2.5 lakh. Suitable evidence of earnings has to be offered if the yearly income is over Rs.2.5 lakh.
PMAY Scheme Interest Rate:
Home loan currently stands 8.45percent for a loan amount of up to Rs.30 lakh. To get a loan amount involving Rs.30 lakh and Rs.75 lakh, the rate of interest stands in 8.55 percent. In case of loan amount above Rs.75 lakh, the interest related is 8.60%. Applicable deductions will be produced according to Pradhan Mantri Awas Yojana.
Subsidy Scheme Under Pradhan Mantri Awas Yojana:
Interest subsidy is available to the beneficiary. The subsidy stands at 6.5% for a 20 year tenure for a loan amount of Rs.6 lakh. The NPV or Net Present Value of the interest subsidy is calculated at 9% (discounted rate).
Further Reading: Pradhan Mantri Awas Yojana
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
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
| 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
| Up to Rs. 30 Lakhs |
Women Borrowers - One year MCLR+ 0.05% |
8.70% |
| Other Borrowers - One year MCLR+ 0.10% |
8.75% |
| Above Rs 30 Lakhs & Upto Rs. 75 Lakhs |
Women Borrowers – One year MCLR+ 0.15% |
8.80% |
| Other Borrowers - One year MCLR+ 0.20% |
8.85% |
| Above Rs.75 Lakhs |
Women Borrowers – One year MCLR+ 0.20% |
8.85% |
| Other Borrowers - One year MCLR+ 0.25% |
8.90% |
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
| Term Loan |
One Year MCLR + 2.80% |
11.45% |
| Overdraft |
One Year MCLR + 3.30% |
11.95% |
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 Premium Housing Loan for High Net Worth Individuals
Canara Bank has introduced Premium Loan that are targeted at servicing the housing finance needs of high net worth individuals. As the target market for these loans are high income groups the loans sanctioned under this scheme are for large projects and the loan amounts available to the individual are high. This scheme can be availed for the construction of a residential house/flat or for the purchase of a plot for construction or for the purchase of house/flat.
Eligibility
- The applicant should be a high net worth individual with an annual gross income of Rs.25 lakhs or more.
- The applicant should be a minimum of 21 years at the time of sanction.
Quantum of Finance
- The minimum loan amount an individual may avail under this scheme is Rs.1 crore.
- The loan amount is restricted to five time the Gross Annual Income of the individual as reflected in the latest Income Tax Assessment.
- The expected rental, less tax etc. or the income of close relatives can be clubbed to determine the eligible loan amount.
- The loan will be disbursed in stages with the last stage coinciding with the completion of the project.
Interest Rates: Loans over Rs.75 lakh
| For Women – One Year MCLR + 0.25% |
8.70% |
| For Others – One Year MCLR + 0.30% |
8.75% |
Security
- Equitable/Registered mortgage of property
- A tripartite agreement may be executed between the bank, borrower and the developer.
Guarantee
- The bank may require a third party guarantee depending on the nature of the application.
Charges
- A processing fee of 0.10% of the loan amount will be charged, not exceeding Rs.25,000.
- Rs.100 per lakh will be charged for documentation not exceeding Rs.25,000.
Moratorium Period
The moratorium period for this loan scheme ranges between 2 months and 36 months, depending on the nature of the project.
Repayment
- The total deduction including the EMIs towards servicing the loan should not exceed 70% of the gross annual income of the individual.
- Salaried individuals can repay this loan 5 years post retirement or 30 years from the first disbursement, whichever is earlier.
- Non-salaried individuals can repay this loan up to the age of 70 years or 30 years from the first disbursement, whichever is earlier.
- Interest will be recovered on a monthly basis during the moratorium period.
Canara Bank Housing Loans for Agriculturists
India is an agriculture based state and a large majority of our population is engaged in agricultural activities or allied activities. As the income for this industry isn't constant many agriculturists find it hard to access funds for constructing a house. Canara Bank has launched Home Loans for Agriculturists to address the financing requirements of people engaged in agricultural activities throughout the country. The several features of the loan strategy have been discussed in detail below.
Eligibility
- Individuals owning and cultivating agricultural property over 5 acres in case irrigated or over 10 acres of dry land.
- The agriculturalists should have 2 decades of satisfactory dealings.
- Agriculturalists engaged in allied activities with a minimum gross annual earnings of Rs.5 lakh.
Quantum of Finance
A maximum of four times the average annual income of the individual.
Margin
| 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
| Up to Rs. 30 Lakhs |
Women Borrowers - One year MCLR+ 0.05% |
8.70% |
| Other Borrowers - One year MCLR+ 0.10% |
8.75% |
| Above Rs 30 Lakhs & Upto Rs. 75 Lakhs |
Women Borrowers – One year MCLR+ 0.15% |
8.80% |
| Other Borrowers - One year MCLR+ 0.20% |
8.85% |
| Above Rs.75 Lakhs |
Women Borrowers – One year MCLR+ 0.20% |
8.85% |
| Other Borrowers - One year MCLR+ 0.25% |
8.90% |
Canara Bank Home Loans for NRIs
Canara Bank has introduced a housing scheme for its Non-resident Indian customers to permit them to get the financing they need to purchase a house in India. This strategy is a client centric and isn't hard to understand. The various features and interest rates applicable have been listed below.
Features
-
Canara Bank Home Loans for NRIs can be availed to construct a house/flat, to purchase a plot for construction or to purchase a house/flat.
-
This loan may be availed for the renovation, job of fixes, upgradation of a home with a ceiling limitation of Rs.15 lakh.
- Canara Bank under this strategy may take over and present Home Loan accountability of a person from different banks or Non-Banking Financial Companies (NBFCs) speed'A'.
Eligibility
- Individual who have a Non-Resident Indian status with a valid Indian Passport and Persons of India Origin (PIO) with valid foreign passports.
- The applicant should be a minimum of 21 years of age and a maximum of 60 years of age.
- Joint applicants may include Spouses or close family members who are Indian residents.
- The applicant should have a consistent flow of income with a minimum of 2 years’ employment abroad and a valid job contract/work permit.
- The applicant should have the NRI status for at least 3 years.
Quantum of Finance
A maximum loan amount of four times the annual gross income of the applicant. The Net Take Home of the applicant should not fall below 40% after the proposed EMI and margin requirements.
Margin
| 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 repairs, renovation, upgradation, etc. a uniform 25% margin will be required.
- For subsequent houses a uniform 25% margin will be required.
Processing Fee
A Processing Fee of 0.10 percent of the loan amount will be charged, with a minimum sum of Rs.500 and a maximum of Rs.10,000.
Repayment
- The loan will be secured through EMIs.
- Conventional banking channels ought to be used for remittances from abroad.
- The applicant may carry out a transfer of money via an Non Resident Rupee (NRE) account or a Foreign Currency Non Resident (Bank) [FCNR (B)] account.
- Local remittance can be made by close relatives.
- The most tenure of the loan is 30 years or before the borrower attains age 60 decades, whichever is earlier.
Moratorium
The moratorium period can last between 2 months to 18 months.
Security
- The applicant will need to provide an equitable mortgage by depositing the title deeds.
- A resident Indian that satisfies the bank's standards need to stand as Guarantee.
Document Execution
- NRI applicants are permitted to give Power of Attorney persons who are resident Indians as per the specified format and stamped as per law.
Rate of Interest
| Up to Rs. 30 Lakhs |
Women Borrowers - One year MCLR+ 0.05% |
8.70% |
| Other Borrowers - One year MCLR+ 0.10% |
8.75% |
| Above Rs 30 Lakhs & Upto Rs. 75 Lakhs |
Women Borrowers – One year MCLR+ 0.15% |
8.80% |
| Other Borrowers - One year MCLR+ 0.20% |
8.85% |
| Above Rs.75 Lakhs |
Women Borrowers – One year MCLR+ 0.20% |
8.85% |
| Other Borrowers - One year MCLR+ 0.25% |
8.90% |
Canara Bank Home Loan FAQ:
- What are the applicable processing charges?
The applicable processing fee is 0.50%. The minimum amount chargeable is Rs.1500/- and the cap on the amount charged as processing fee is Rs.10, 000/-.
- What is the applicable margin on home loan?
A margin of 25% is applicable for expansion of existing house, repairs & renovations, upgradation and creation of additional amenities, for constructing/purchasing a second house, etc.
- What will be my contribution?
| Up to Rs. 20.00 Lacs |
10% |
Up to 10 years old 20%
More than 10 years old 25%
|
| Above Rs. 20.00 Lacs & up to Rs.75.00 Lacs |
20% |
Up to 10 years old 20%
More than 10 years old 25%
|
| Above Rs. 75.00 Lacs |
25% |
Up to 10 years old 25%
More than 10 years old 25%
|
- What is the maximum repayment period?
The maximum repayment period is either 30 years or until the borrower reaches the age of 70 years, whichever comes first.
- What is the loan quantum offered to individuals?
The maximum loan offered is four times the gross annual income of the individual, in a financial year, or, four times the average gross annual income earned in the preceding four financial years.
Comments
0 comments
Please sign in to leave a comment.