Canara Bank Home Loan

Features and Benefits of Canara Bank Home Loan

• Easy to Apply: The bank offers online and offline modes of loan applications to prospective borrowers. Canara Bank home loan online applications can be accessed via the bank’s website and mobile application. Canara Bank home loan offline applications are available through domestic branches and phone banking services.
• Different Types of Loans: Canara Bank has different home loans to cater to a wide customer base. These loans can be availed at affordable interest rates for renovation, residential, farming and investment purposes.
• Loan Amount: An applicant can raise up to 6 times their income, i.e. gross monthly salary in case of employees and average gross annual earnings of the past three financial years in case of business owners. The bank provides up to a 75 to 90% Loan To Value (LTV) ratio to minimise the applicant’s financial burden.
• Mortgaging the Property: Canara Bank home loans are secured loans where the estate serves as collateral. Applicants must mortgage their property with the bank until the loan is fully settled. The candidate must also contribute 10%-25% of the property value as a down payment while the bank finances the rest.
• Rates of Interest: Canara Bank’s interest rates vary from 8.9% to 13.80% across home loan options. The bank’s special concessions on interest charges lower the minimum rate to 8.85% for women borrowers.
• Longer Tenure: Canara Bank housing loans can be repaid within 30 years. However, while longer durations of tenure reduce the cost of monthly EMIs, they also cause greater interest outflows on the customer’s part.
• Repayment: Home loans can be settled via EMIs, post-dated cheques and digital services. Usually, home loan EMIs start within two months of the full loan amount disbursal.
• Prepayment Facility: Canara Bank allows its borrowers to prepay home loans in part or full. Prepayments significantly reduce EMI burdens on a borrower. Canara Bank’s consumer-friendly approach allows a borrower to repay the loan before maturity without levying additional prepayment charges.
• Approval Time: Home loans generally get approved within 2-4 weeks of application. A home loan approval is a long and complex process. Banks aim to minimise risks by thoroughly verifying the applicant and the property’s credentials. However, existing Canara Bank customers can apply for pre-approved loans, which offer hassle-free quick disbursements.
• Rigorous Verification: To avoid the risk of default on home loans, Canara Bank home loan applications undergo sharp scrutiny. Thorough background checks of the applicant and the property are conducted before approving the request.

Don’t miss to Check: Canara Bank Home Loan Interest Rates

Canara Bank Home Loan Overview

Amidst many loan options, Canara Bank provides a wide range of affordable housing loans. With basic documentation, individuals displaying sound financial credibility can easily apply for Canara Bank home loans. Owning your ultimate dream home, financing an agricultural land, sponsoring energy-efficient solar panels for your house or renovating your existing apartment – the bank’s home loans cater to all property-related needs.

Canara Bank is one of the country’s oldest and most reliable public sector banks. Canara Bank Home loans are secured loans which can be availed by self-employed, salaried and non-resident Indians.

Keeping the requirements of its customers in mind, Canara Bank offers the following housing loan options.

• Housing Loan/Home Loan
• Canara Home Loan Plus
• Housing-cum-Solar Loan
• Home Loans for NRIs scheme
• Housing Loan to Agriculturists
• Canara Home Loan Super Gain (CASA)
• Canara Kuteer – Housing Loan scheme

Eligibility Criteria and Factors Affecting Canara Bank Home Loan Eligibility 

Canara Bank home loan eligibility depends upon several factors discussed below in detail.

• Salaried Applicants: Salaried employees must showcase proof of 2 years of continuous work experience and 6 months of stable employment at the current organisation.
  
• Self-employed Applicants: Business owners, entrepreneurs and freelancers engaged with the business for at least 3 years can apply for a home loan at Canara Bank.
  
• Age: Canara Bank issues home loans to people between 18 and 75. Applicants below 60 years can be easily issued a loan. However, for candidates between 60-75 years, a home loan approval is subject to the bank’s scrutiny and discretion.
  
• Agriculturists: 5 acres of irrigated/ 10 acres of dry agricultural land is the minimum requirement for an agriculturist to apply for a home loan with the bank. A minimum gross annual income of 5 lakhs is also required for candidates engaged in other allied activities.
  
• Residency: Residents, as well as Non-Resident Indians, are eligible for Canara Bank home loan online applications.
• Credit Rating: Customers applying for a home loan must have sound credit score. A score of 750 or higher is generally preferred for home loan applicants.

Types of Canara Bank Home Loans

Canara Bank home loans offer customised options to fulfil a range of requirements. These include funding for building a home, buying real estate, or even setting up solar panels on rooftops. Loans for home improvements or purchasing a second house are also available. Every loan has adjustable terms, competitive interest rates, and no prepayment penalties. In addition to these advantages, the Canara Bank house loan is an easy and accessible option for homebuyers because of low processing costs and bonuses like a free credit card.

Home Loan for NRIs

Housing cum Solar Loan

Canara Kuteer Home Loan

Explore more about Kuteer Home Loan by Canara Bank.

Housing Loan to Agriculturists

Canara Bank Home Loan Fees and Charges

Financial institutions earn profits by lending money to borrowers. Banks levy different rates of interest on their loan offerings. Over the interest rates, the bank imposes several other additional charges, such as the processing fee and prepayment charges. Let us discuss these charges in detail.

Processing Fee

Canara Bank home loan applications bear a processing fee of 0.10%-0.50% across different home loan categories. The charge is imposed on the loan amount while issuing home loans to its customers. The cost of processing charges ranges from Rs. 500 – Rs. 10,000

The bank levies these nominal processing charges to recover the administrative costs they bear throughout the loan approval process.

Prepayment Charges

Canara Bank has a zero prepayment charges policy for housing loans issued at a floating interest rate. A loan balance transfer from Canara Bank to any other financial institution can be easily executed without paying any prepayment charges.

Documents Required for Canara Bank Home Loan

Home loans are issued against the property in consideration. Therefore, the documentation process is time-consuming and complex. Through these documents, the bank aims to establish a candidate’s credibility and gain ownership of the property to be kept as collateral. The Canara Bank’s home loan requirements are as follows –

• Loan application form
• 2 passport-size photographs
• Address Proof: Driving License/ Electricity Bill/ Water Bill
• Income Proof: Salary receipts/ Form 16; Tax returns for past 3 years/Balance sheet and P&L account
• A brief note giving a business overview (for self-employed people) 
• Agreement for Sale
• Sale Deed
• Copy of construction plan
• Copy of cost estimates
•  Legal Scrutiny report 
• Encumbrance Certificate of past 13 years/ Property tax paid receipt
• Allotment letter from the concerned authorities

How the EMI Calculation Works for Canara Bank Home Loan?

Canara Bank allows their customers to settle home loans through Equated Monthly Instalments. The EMIs are calculated based on the principal amount, loan tenure and the applicable interest rate. As per the reducing balance method, the interest is charged on the outstanding loan amount to calculate home loan EMIs. EMI is calculated on home loans using the following formula –

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

• P is the principal loan amount
• R is the rate of interest
• N is the loan tenure

Canara Bank provides an online EMI Calculator where applicants can get early estimates of the monthly instalments without additional charges. The Canara Bank’s online EMI calculator can be used by following these simple steps.

• Open the online EMI calculator.
• Set the loan amount, tenure and interest rate using the slider.
• Once the values are defined, the calculator will notify EMI estimates.

Balance Transfer Home Loan Canara Bank

Canara Bank offers affordable and attractive loan transfer options. 100% of outstanding loan amounts from other banks and lenders can be transferred to Canara Bank with up to 90% LTV. Further, the bank does not impose any prepayment penalty on transferring housing loans with floating interest rates to other banks.

Here is how you can apply for a balance transfer at Canara Bank:

• Apply for the loan transfer at your previous bank.
• Pay the necessary transfer fee and charges and regain your documents.
• Collect the NOC/ transfer acknowledgement receipt from the previous bank.
• Apply for the transfer at Canara Bank.

Don’t miss to Check: Housing Loan Balance Transfer Calculator