Canara Bank Loan Against Property
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.
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, 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.
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.
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.
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.
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]
- 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|
|PNB Housing Finance||7.75-11.00|
|L&T Housing Finance||10.30-10.90|
|LIC Housing Finance||7.50-10.50|
|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)
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Canara Bank's Other Products
Canara Bank's IFSC Codes
- Canara Bank Andaman and Nicobar
- Canara Bank Andhra Pradesh
- Canara Bank Assam
- Canara Bank Bihar
- Canara Bank Chandigarh
- Canara Bank Chhattisgarh
- Canara Bank Dadra and Nagar Haveli
- Canara Bank Delhi
- Canara Bank Gujarat
- Canara Bank Haryana
- Canara Bank Himachal Pradesh
- Canara Bank Jammu and Kashmir
- Canara Bank Jharkhand
- Canara Bank Karnataka
- Canara Bank Kerala
- Canara Bank Lakshadweep
- Canara Bank Madhya Pradesh
- Canara Bank Maharashtra
- Canara Bank Manipur
- Canara Bank Meghalaya
- Canara Bank Mizoram
- Canara Bank Nagaland
- Canara Bank Odisha
- Canara Bank Puducherry
- Canara Bank Punjab
- Canara Bank Rajasthan
- Canara Bank Tamil Nadu
- Canara Bank Telangana
- Canara Bank Tripura
- Canara Bank Uttarakhand
- Canara Bank Uttar Pradesh
- Canara Bank West Bengal
Loan Against Property By Other Banks
- Axis Bank Loan Against Property
- Bank of Baroda Loan Against Property
- ICICI Bank Loan Against Property
- HDFC Bank Loan Against Property
- Bajaj Finserv Loan Against Property
- IndiaBulls Loan Against Property
- Union Bank of India Loan Against Property
- CITI Bank Loan Against Property
- YES Bank Loan Against Property
- DHFL Loan Against Property
- Federal Bank Loan Against Property
- IndusInd Bank Loan Against Property
- State Bank of India Loan Against Property
- Punjab National Bank Loan Against Property
- IDFC FIRST Bank Loan Against Property
- Hero FinCorp Loan Against Property
- IDBI Bank Loan Against Property
- Digikredit-SME Corner Loan Against Property
- Kotak Bank Loan Against Property
- Poonawalla Fincorp Limited Loan Against Property
- Ujjivan Small Finance Bank Loan Against Property
- Shriram Urban Co Operative Bank Limited Loan Against Property
- Muthoot Finance Ltd Loan Against Property
- Piramal Housing Finance Loan Against Property
- Fullerton India Loan Against Property
- Punjab National Bank Housing Finance Loan Against Property
- Reliance Bank Loan Against Property
- RBL Bank Loan Against Property
- Standard Chartered Bank Loan Against Property
- Tata Capital Financial Services LTD Loan Against Property
- Tata Capital Housing Finance Limited Loan Against Property
- Housing Development Finance Corporation Loan Against Property
- IIFL Finance Loan Against Property
- InCred Financial Services Loan Against Property
- Godrej Housing Finance Loan Against Property
- Home First Finance Company Loan Against Property
- DCB Bank Loan Against Property
- Edelweiss Financial Services Loan Against Property
- Vastu Housing Finance Loan Against Property
- Aditya Birla Finance Limited Loan Against Property
- HDFC Sales Loan Against Property
- Aadhar housing Finance Loan Against Property
- Capri Global Loan Against Property
- Capital First Ltd. Loan Against Property
- L&T Finance Loan Against Property
- Cholamandalam Finance Loan Against Property
- Deutsche Bank Loan Against Property
- Clix Capital Loan Against Property
- HSBC Loan Against Property
- Emirates NBD Loan Against Property
- Hero Housing Finance Loan Against Property
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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