Urban Money

Canara Bank Loan Against Property

Canara Bank
4.5

Canara Bank was founded by Shri. Late Ammembal Subbarao Pai in July 1906. The bank was founded in Mangalore in Karnataka and has evolved into one of the foremost Indian banking institutions today. Post nationalization in 1969, Canara Bank has diversified rapidly into several business segments.

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Urban Money

Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Canara Bank Loan against property Interest Rate

Up to 9.95%

Up to 0.5%

-

Tenure(Up to 10 Years)

Details

Features and Benefits of Canara Bank Loan Against Property

The Canara Bank Loan Against Property (also referred to as Canara Mortgage) caters to individuals for non-business purposes. The loan product is designed to meet any urgent, personal or medical needs. It can be availed for up to ₹10 Crores for a tenure of 7 years.

Loan Amount Up to ₹ 10 Crores
Interest Rate 10.35% onwards
Loan Tenure Up to 7 years
Loan-to-Value Ratio (LTV) Up to 50% of the property value
Processing Fee 1% of the loan amount

Although Canara Bank Loan Against Property is only meant for fulfilling non-business purposes, it has several other features as follows:

  • You can avail a higher loan amount of up to ₹10 crores.
  • Competitive interest rates start from 10.35%.
  • The bank doesn't levy any hidden charges on Loan Against Property later.
  • If you avail of Loan Against Property at floating rates, you won't be levied any prepayment charges.
  • You can repay the loan up to a maximum of 7 years.

Eligibility Criteria for Obtaining Canara Bank Loan Against Property

To obtain a Loan Against Property from Canara Bank, you must meet the following eligibility criteria:

  • Individual customers should have a good relationship with Canara Bank.
  • NRI customers can avail of Canara Bank LAP with their close relatives as co-borrowers who should be Indian citizens.  
  • Individuals availing of Canara Bank LAP for the first time should be creditworthy and have healthy market/bankers reports.

Canara Bank Loans Against Property Fees and Charges

Canara Bank levies the following fees and charges on Loans Against Property.

Types of Charges Applicable Amount
Processing Fee 0.50% of loan amount (minimum ₹5000/-)
Documentation Charges ₹100 per or partial lakh with minimum ₹1,000 and maximum ₹25,000
Guarantee  Applicants need to provide a personal guarantee regarding adequate net worth that is acceptable to Canara Bank. Selective waiver is considered. 
Security Value of the property should be 200% of the loan amount.

Canara Bank Loan Against Property Interest Rates

The interest rate of Canara Bank Loan Against Property varies from one person to another based on their credit score. Given below are the different rates of interest offered on Canara Mortgage.

CRG* RLLR* Credit Risk Premium over RLLR Effective Rate of Interest under RLLR
CRG: 1 7.30% 3.05% 10.35%
CRG: 2 7.30% 3.10% 10.40%
CRG: 3 7.30% 3.60% 10.90%
CRG: 4 7.30% 5.10% 12.40%

*CRG, known as the Credit Risk Grading, is a predefined scale that reflects the underlying credit risk for a given exposure. CRG 1 is for borrowers with a higher credit score.

*RLLR, known as Repo Linked Loan Rate, is a lending rate which is linked to the RBI's repo rate.

Factors Affecting Canara Bank Loan Against Property Interest Rates

There are various factors that affect the interest rate of the Canara Bank Loan Against Property.

Credit Score

The CIBIL/credit score of the borrower must be at least 750 to be eligible for securing a loan against property from Canara Bank. The higher the CIBIL score, the lower the interest rate could be.

Income of the Borrower

Borrowers under the higher salary bracket are more likely to receive Loans Against Property at lower interest rates. This is because the repayment capacity of borrowers with higher salaries is more, and so lenders consider them trustworthy.

Financial Status

Besides income, the financial history of the borrower is another most important factor that the lender examines before offering an interest rate. Applicants with a lower Debt-to-Income (DTI) ratio, higher income, and employed in a highly reputed organisation can seek lower interest rates on Canara Bank Loan Against Property.

Mortgage Property

The property that the borrower is pledging must be in a good state, or the lender will charge a higher rate of interest on the loan. The age of the property and its market value is the most important parameters considered before the lender decides the final interest rate on Loans Against Property.

Loan Tenure

Since Loan Against Property is a long-term loan, the interest rates offered on it are usually lower than other kinds of loans. Therefore, if you opt for a short loan tenure, the interest rate will be higher.

Documents Required for Obtaining Canara Bank Loan Against Property

Submit the following documents when applying for Canara Bank LAP.

  • Duly filled loan application form
  • Two passport size photographs
  • Copy of lease agreement
  • Approved plan of building
  • Income proof of the borrower and guarantor – Income Tax Assessment Order or Income Tax Returns
  • Certificate of balance if Loan Against Property is availed from any other source
  • EC, latest tax paid receipt/ Title deeds of the property/ Legal Scrutiny Report
  • Last two years' annual financial statements (if not salaried)

Canara Bank Loan Against Property EMI Calculator

Calculating your EMIs before taking a loan is imminent. To do so, go for Canara Bank Loan Against Property EMI Calculator. It’s easy and fast, helping you plan your finances better with precise EMI estimations. You can also use Urban Money EMI Calculator to do the same. AI-backed, this calculator only requires your loan amount, interest rate and tenure to estimate your LAP EMIs without any errors. 

However, if you want to calculate your EMIs manually, you can do so with the help of the below-mentioned mathematical formula.

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

Where,

  • P= Principal Amount
  • R= Interest Rate
  • N= Repayment Tenure

How Does Canara Bank LAP Compare with Other Lenders?

The below comparison of Canara Bank Loan Against Property with other lenders is based on different interest rates.

Name of the Lender Interest Rate (% p.a.)
Canara Bank 10.35% onwards
Federal Bank 10.10 onwards
Bank of Baroda 8.20-13.85
Axis Bank 7.90 – 9.30
State Bank of India 8.40-8.80
IDFC First Bank 6.50-14.00
HDFC 7.35-10.30
PNB Housing Finance 7.75-11.00
L&T Housing Finance 10.30-10.90
LIC Housing Finance 7.50-10.50
ICICI Bank 7.85-9.50
Bajaj Housing Finance 8.00-9.05
Godrej Housing Finance 7.99-10.99
Kotak Mahindra Bank 9.50-11.70
Tata Capital 10.10 onwards

Canara Bank Loan Against Property Customer Care Number

For any queries or additional information on Canara Bank LAP, you can connect with the customer care executives of Canara Bank on their toll-free numbers:

  • 1800 425 0018
  • 1800 103 0018
  • 1800 208 3333
  • 1800 3011 3333
  • +91-80-22064232 (if calling from abroad)

FAQs

From refinancing to reducing your interest, we have the answers right here.

What is Canara Bank LAP’s applicable benchmark rate?

The benchmark rate applicable for Canara Mortgage is 1-year MCLR, which is 8.70%, with effect from 7 May 2019.

What is the maximum amount offered under Canara Bank Loan Against Property?

The maximum loan amount that you can get depends on the market value, age, and condition of your property and your repayment capacity. As per the Panel Valuer’s valuation of the bank, customers are allowed to receive up to 50% of the property value. The maximum capital on the loan amount is ₹ ten crores.

What is the maximum repayment tenure available for Canara Bank Loan Against Property?

The maximum loan term Canara Bank offers is seven years on the Loan Against Property. This tenure can later be extended to 10 years in special cases. The loan will be paid only in EMIs.

What is the offered interest rate at Canara Mortgage?

Canara Mortgage interest rate starts from 10.35%.

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