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Fincash » Home Loan » Canara Bank Housing Loan

Canara Bank Housing Loan

Updated on July 14, 2024 , 60393 views

One of the substantial reasons that may deter you from purchasing or constructing a house could be a lack of funds. Thus, to fulfil this necessity, banks and financial institutes provide a perfectly curated loan option.

Canara Bank Housing Loan

A loan, if managed adequately, can be a huge help when it comes to buying a house of dreams. For sure, so far, this Facility has proven out to be advantageous for numerous people. Just like several other banks in the country, even Canara Bank is Offering a housing loan.

In this post, let’s discuss more about Canara bank Home Loan details and find out its interest rate, purpose, and other aspects.

Features of Canara Bank Housing Loan

With a housing loan from the Canara bank, there is an array of advantages that you can expect. Some of the Canara bank housing loan details include:

The bank provides a multi-purpose loan, such as for:

  • Buying an already built Flat or house
  • Constructing a flat or house
  • Buying a site and constructing a house from the scratch
  • For repairing, expanding, upgrading and renovating additional amenities
  • For buying a second flat or house

You can keep a flat or house mortgage in the form of security. The nominal processing fee is of 0.50%, while the minimum would be Rs. 1500; the maximum would be Rs. 10,000.

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How much Amount does the Bank Finance?

Canara bank finances up to:

  • 4 times of annual gross salary, according to ITR/ITAO of the settled financial year for salaried class
  • 4 times of average annual gross Income of four years for people engaged in business, according to the documentary evidence of the products relevant to the gross annual income
  • Selectively loan up to the gross salary of income up to 5 years
  • For renovations and repairs, an amount of Rs. 15 lakhs is sanctioned

Canara Bank Home Loan Eligibility

Taking the need for having a luxurious home in consideration, Canara bank hasn’t posed many restrictions when it comes to creating their eligibility guidelines. However, before you apply, make sure that you meet these below-mentioned eligibility requirements:

  • You should be an individual who is either:
    • A salaried employee with a minimum of 3 years in service; or
    • An individual engaged in self-employment, profession, or business with at least 3 years of work time in that stream
  • The age of entry should be lesser than 60 years during the time of acquiring the loan
  • The loan should get cleared before the borrower reaches 70 years of age
  • A person who is more than 60 years can get specific stipulations

Canara Bank Housing Loan Interest Rate 2024

As per the bank details, the interest rate varies according to the requirement and purpose of the loan. On top of that, additional factors, such as gender, risk Factor, amount, and tenure also play a substantial role in deciding the interest rate. All in all, here is what you can expect from this housing loan:

The following table describes interest rate on loans for purchase, extension, construction, repair or renovation of the house.

Risk Grade Women Borrowers Other Borrowers
1 6.90% 6.95%
2 6.95% 7.00%
3 7.35% 7.40%
4 8.85% 8.90%

How will you Be Contributing?

Housing Loan Amount New House/ Flat or Old Flat/House (Up to 10 years) Old Flat/ House (>10 years)
Up to Rs. 30 lakhs 10% 25%
More than Rs. 30 lakhs, up to Rs. 75 lakhs 20% 25%
More than Rs. 75 lakhs 25% 25%

This margin is specified on the total project cost. If the cost of housing loan is up to Rs. 10 lakhs, registration charges, stamp duty, and additional documentation cost will be included in the entire project.

Prepayment and Repayment Charges

  • There are no prepayment charges will be applicable on housing loans that have a Floating Rate of Interest
  • The equated monthly instalments would be up to 30 years or the borrower reaching the age of 75 years, whichever is earlier
  • If the loan is for obtaining an already built flat or house, the repayment will start within two months from the disbursement date
  • If the loan is for obtaining plot or construction of the house, the repayment will start within two months after completing the house or 24 months from the disbursement date, whichever would be earlier
  • If the loan is for obtaining flat that is under construction, the repayment will start within two months of construction completion or 36 months from the disbursement date, whichever would be earlier

Documents to Apply for Canara Housing Loan

If you are ready to take Canara bank housing loan, you would have to accumulate all the necessary documents for submission. The list includes:

  • Carefully and cautiously filled loan application form
  • 2 passport size pictures of the applicant as well as the guarantor
  • Sale Deed
  • Agreement of sale
  • For addition / extension / construction, a copy of approved plan
  • Detailed valuation or estimate report from the architect or chartered engineer included in the bank’s panel
  • P&L account and Balance Sheet for the last 3 years (for self-employed)
  • Allotment letter of housing board / builders / association / NOC from the society / apartment owners’ association / co-operative housing society
  • A brief note on the type of organization, nature of the business, establishment year and other relevant details regarding the business (for self-employed)
  • Permission for a mortgage, Khata, the property tax paid Receipt, EC for the last 13 years, and legal scrutiny report (whenever needed)
  • IT returns for the last 3 assessment years (for non-salaried individuals)
  • Salary certificate and Form 16 (for salaried individuals)

Customer Care Service Number

For any queries related to the housing loan, you can contact the Canara Bank customer care service @1800-425-0018.

FAQs

1. What are advantages of taking a housing loan from Canara Bank?

A: Like many other banks, Canara Bank offers housing loans to help individuals purchase or construct their houses. However, the Bank is known to be quick with disbursing of housing loans to eligible individuals. Moreover, the bank's loan comes with multipurpose use, which means you can use the money to purchase a readymade house or a plot to start building a house or even repair or renovate your existing house.

2. What are some of the critical features of the Canara Bank Housing Loan?

A: The Canara Bank housing loan is given to salaried and self-employed individuals. The bank also gives housing loans to women at special rates.

3. Are the loans available at a fixed rate and floating rates?

A: Yes, the bank offers housing loan both at a fixed rate and floating rates. The interest rates can Range from 6.9% to 8.9%.

4. Are there any special schemes under which Canara Home Loan can be taken?

Yes, the bank also disburses home loans under the following schemes:

  • Yuva Awas Rin
  • Canara Home Loan Plus
  • Canara Site Loan

These are special schemes offered to individuals like NRIs, senior citizens and women borrowers.

5. Is there any processing fee involved with the disbursement of the loan?

A: The bank charges a 0.5% processing fee for the disbursement of the loan. The value of the processing fee can range from Rs.1500 to Rs. 10,000.

6. What are the features of the Canara Home Loan Plus?

A: The interest rate of the Canara Bank Home Loan Plus is given at a rate of interest of 7.45% to 9.50% per annum. The loan is given as an additional amount on the existing loan. It is given to individuals with good repayment history for at least one year upto 10 years. It also has an overdraft facility of three years.

7. What are the features of Canara Home Improvement Loan?

A: It is given to individuals who want to purchase appliances, furnish and also want to renovate their homes. The loan has a higher interest rate ranging from 9.4% to 11.45%. The loan is given to NRIs depending on the eligibility criteria of the applicant. The loan has a repayment tenure of 5 years.

8. What is the most crucial factor to consider when applying for Canara Home Loan?

A: When you apply for a home loan from Canara Bank, you should consider the loan amount you require. The higher the loan value, the more excellent will be the EMI. Therefore it is vital to keep the loan amount to the minimum required without extensively depleting your savings. Discuss with the loan officer the amount of loan you would require and the amount you can repay. Based on that, decide the value of the home loan.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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