Canara Bank Home Loan
The interest rate on a Canara Bank home loan starts at 6.90% p.a. Canara Bank offers mortgage loans with flexible repayment tenures of up to 30 years. Get housing finance for purchase, construction, or home renovation. Affordable home loan interest rates are available to both salaried and self employed individuals. Apply online for Canara Bank's lowest EMI deal, starting at Rs 691 per lakh, and unlock plenty of features, including minimal documentation, balance transfer, top up loans and low processing fees
Features and Benefits of Canara Bank Home Loan
Give below are some of the features and benefits of obtaining a home loan from Canara Bank:
- Get up to 60% of the property value as a sanctioned loan amount.
- Low-interest rates, starting at 7.05% per annum.
- Minimal documentation requirement.
- Canara Bank home loans are linked to floating interest rates. This means that you will not have to pay any charges for the prepayment of the loan.
- Simple online digital application process.
- Get extended tenure of up to 30 years.
- Minimum and hassle-free documentation process
- Balance transfer facility available for eligible customers
- Low processing fees
Canara Bank Home Loan Eligibility Criteria
Given below are the eligibility criteria to obtain a home loan from Canara Bank:
|Minimum age of the applicant||21 years|
|Maximum age of the applicant||70 years|
|Residency status||Residents of India/Non-residents of India|
|Type of employment||Salaried/Self-employed/Businessmen/Professionals|
Canara Bank Home Loan Fees and Charges
In addition to the interest rates, there are a number of other fees and charges that Canara Bank levies on its home loan products, some of which are given below:
- Processing Fee: Canara Bank charges 0.5% of the sanctioned loan amount with respect to processing fees. This is for the amount spent to complete the lending process.
- Legal and Technical Charges: Canara Bank also charges legal and technical fees as decided during the loan processing period. You are required to pay this amount after the loan has been processed.
- Prepayment Fees: When the borrower wants to transfer the home loan to another provider, they are required to submit an application to Canara Bank informing the same. In accordance with the rules set by the Reserve bank of India, loans issued with floating interest rates will not have any prepayment charges.
Canara Bank Home Loan Interest Rates
Given below are the effective interest rates for a home loan from Canara Bank. These interest rates are based on the current RLLR of 7.30%:
|Type of Borrower||Credit Risk Premium over RLLR (%)||Concession (%)||Effective Rate of Interest under RLLR (%)|
|For Other Borrowers||0.05||(-0.25)||7.10|
Factors Affecting Canara Bank Home Loan Interest Rates
A home loan can be described as a financial product that enables you to own your dream home without needing to deplete your savings. Whether or not a home loan may be financially feasible for you depends on the EMI payments you will be required to make to repay your principal and interest amount. Banks and NBFCs consider several factors while deciding the interest rate for your home loan.
The interest rate for your home loan depends greatly on the loan amount you have applied for. Even though Canara Bank offers home loans of up to 6 times your annual salary, it does not mean you should necessarily take the entire amount.
You must first analyze your needs and apply for an amount based on the price of the property you are planning to purchase. The higher the loan amount, the more interest you will have to pay. So it is important to keep your loan amount restricted to the amount you need, rather than applying for a higher amount just because it is available.
Even though banks and other financial institutions grant you several years to repay your home loan, you should always try to choose the shortest loan tenure possible. Regardless of the high EMI amounts, shorter tenure loans attract low-interest rates.
If you opt for a longer tenure, you may get lower EMI payments, but you will end up paying higher interest. You can use the Urban Money Home Loan EMI Calculator to calculate your monthly payments and choose the shortest EMI accordingly.
Applicable Interest Type
The interest rate decided by your lender can be based on the fixed or floating rate metric. In accordance with RBI guidelines, floating interest rates are subject to change from time to time. If RBI lowers the floating rate of interest, you will save on interest payments and will have to pay a lower EMI amount. Alternatively, if RBI increases the floating interest rate, your EMI will also increase.
In a fixed interest rate loan, the applicable interest rate does not change during the entire loan tenure. This means that you will not be able to take benefits of an interest rate reduction if that occurs. Some loan providers also give the option of opting for a fixed interest rate for the initial 2-3 years and a floating interest rate for the rest of the tenure.
Your credit score and history play a crucial role in determining your Canara Bank Home Loan interest rate. If your credit score is less than 725, you might get higher interest rates or even lead to rejection of your application. When you make an application for a home loan, the loan provider will check your credit profile to determine your creditworthiness, repayment history and financial habits. A low credit score may be viewed as credit risk, and you may be granted higher interest rates.
A higher credit score means that you are a reliable borrower, and you may be granted lower interest rates. So always remember to make timely payments to maintain a healthy credit profile.
Loan-To-Value Ratio (LTV)
LTV can be defined as the percentage of property value for which you are obtaining the home loan. A higher LTV ratio usually means higher interest rates, owing to the increased risk factors involved. You can reduce the LTV ratio by paying a higher down payment. This will eventually lower the applicable interest rates.
Employment Type and Income
Usually, banks and lenders in the country sanction home loans to both salaried and self-employed applicants. Those who have a steady source of income are viewed as low-risk borrowers and are granted lower interest rates. Lenders usually prefer government employees, PSU employees, salaried employees and professionals working in leading firms as applicants. Business owners, especially startups and SMEs, may be considered high-risk applicants as their ROIs and repayment capabilities are difficult to estimate.
Documents Required for Canara Bank Home Loan
Given below are some of the documents required to be submitted while making a home loan application with Canara Bank:
- Completed and signed home loan application form
- Two passport size photographs
- Identity proof documents
- DOB proof documents
- Address proof documents
- Copy of PAN Card
- Property documents
- Processing fee cheque
Income Documents for Salaried Applicants
- Recent 6 month salary slips
- Bank account statement from the previous 6 months
- Confirmed employment proof of 3 years
Income Documents for Self-Employed Applicants
- P&L account statements from the previous 3 years and balance sheet
- ITR from the previous 3 years
- A broad summary regarding the nature of business, present banker, year of establishment, net worth of the applicant, etc.
- Bank statements from all bank accounts
- Business license
How Does Canara Bank Compare With Other Lenders?
The table given below depicts how Canara Bank compares with other lenders and loan providers in the market:
|Lender||Interest Rate upto Rs. 30 lakhs (%)||Interest Rate above Rs. 30 lakhs to Rs. 75 lakhs (%)||Over 75 lakhs (%)|
|Canara Bank||7.05 – 11.85||7.05 – 11.85||7.05 – 11.85|
|State Bank of India||6.65-7.65||6.65-7.65||6.65-7.65|
|Kotak Mahindra Bank||7.00 onwards||7.00 onwards||7.00 onwards|
|PNB Housing Finance||6.75-12.00||6.75-12.00||6.90-9.75|
|Punjab National Bank||6.95-8.35||6.90-8.05||6.90-8.00|
|Bank of Baroda||6.90-8.40||6.90-8.40||6.90-8.65|
|Union Bank of India||6.50-8.25||6.50-8.45||6.50-8.45|
Canara Bank Home Loan Customer Care Number
If you have any doubts or queries regarding Canara Bank Home Loan, you can contact their customer care in the below mentioned ways:
|E-mail Address||[email protected]|
|Address||Canara Bank Head Office, 112, J C Road, Bangalore – 560 002|
From refinancing to reducing your interest, we have the answers right here.
Can the applicant choose between floating or fixed interest rates?
No, the Canara Bank offers home loans at floating interest rates only.
What is the home loan eligibility determined by?
The Canara Bank home loan eligibility depends on various factors like credit score, age, income, job profile, employer’s profile, etc.
Is there any concession on home loans for women?
Yes, Canara Bank offers a concession of 0.25% on the interest rate for women.
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