Canara Bank Home Loan Documents Required

Canara Bank Home Loans are easy to apply for and completely transparent. You can get a loan to purchase a residential or commercial property, renovate a residential or commercial property, purchase of plot and construct of property on the land, and transfer the balance of any existing Home Loan with another bank or NBFC.

Canara Bank Housing Loans come packed with multiple benefits and features. The goal of each type of Housing Loan with Canara Bank is to make funds accessible to each customer with maximum ease.

The types of loans and their features are as follows:

Document verification is one of the key aspects for the success of your loan application. To fulfill the Canara Bank Home Loan eligibility criteria, the following documents are required:

• Duly filled loan application form with 2 passport-sized photos
• Sale deed of the property
• Sale agreement
• Copy of the approved plan for construction and renovation
• The estimate of the cost in Detail or valuation of the property by a Chartered Engineer appointed by the bank or architect
• Allotment letter for a property by the Housing society or NOC from society, builder, or housing board
• Complete legal scrutiny report
• Property tax receipt
• Permission or khata for mortgage
• For salaried individuals, the Salary Certificate and Form 16
• For non-salaried individuals, IT returns for the last three years, PL Account, and Balance Sheet, along with a note about the nature of business

Here is a checklist of the categories of documents that are mandatory for applying for housing loans with all banking institutions, including Canara Bank.

• 1. Home Loan Application form along with 2 passport-size photos.
• 2. ID Proof: PAN Card, Adhaar Card, Passport, Driver's License, or Voter's ID.
• 3. Age Proof: PAN Card, Adhaar Card, Passport, Birth Certificate, Passbook, or Driver's License.
• 4. Address Proof: Voter's ID, Bank Passbook, Ration Card, Passport, Utility Bills, LIC Policy, or a letter from any authorized personnel.
• 5. Income proof:
  • a) For salaried individuals: Last 3 years ITR, Form 16, 2 months' payslip, investment proof such as FD and shares, Promotion or increment letter as required, Letter of Employment.
  • b) For non-salaried individuals: Last 3 years ITR, Balance sheet and P&L statement, proof of business address, Business license, certificate of business registration.
  • 6. Property Documents: NOC from the builder or society, estimation of construction cost, sale deed, the sale agreement or Allotment letter, occupancy certificate, property tax receipts, maintenance and utility bills, receipts for any advance payments made, approved floor plan and building plan copy, possession certificate and land tax receipt, bank account statements showing all payments made to the builder or property owner.

The documents from salaried individuals must show the required income for approval of the loan. Here is a checklist of the documents to be submitted:

• Home Loan application form with 2 recent passport-sized photos.
• Employer ID card or tag.
• Account statements: 6 months' bank statements for all the accounts that the applicant holds, and the loan account statement for the last year if applicable
• Income Proof: Salary slip for the last 3 months, Form 16, copy of 2 years' IT returns.
• ID proof: PAN Card/ Adhaar Card/ Passport/ Drivers License/ Voters ID
• Proof of Address: Driver's License/ Passport/ Utility Bills/ Rental Agreement/ Adhaar Card
• Property Documents:
  • Permission for construction, if applicable
  • Registered Sale Agreement (Maharashtra only), Stamped Sale Agreement, Allotment Letter
  • Occupancy Certificate in case of a property that is ready to move in.
  • Share certificate (applicable only in Maharashtra)
  • Copy of the approved plan
  • Conveyance Deed in case of New Property
  • Registered development agreement from the builder
  • Account statements or receipts for payments made to the seller or builder

In case of self-employed individuals, the income proof documents vary from salaried individuals. The other documents, including ID proof, property documents, proof of residence, and age proof, are the same as mentioned above.

The documents to be submitted by self-employed individuals are:

• Proof of address for business
• IT returns for the last 3 years
• Balance Sheet for the last 3 years, along with Profit and Loss Statements.
• Details of the business license or any other equivalent.
• TDS Certificate or Form 16A if applicable.
• For professionals like CA and Doctors,a certificate of qualification is necessary.

The documents required for senior citizens or pensioners are as follows:

• Application form with 1 recent passport-size photo
• ID proof: Driving License/ Passport/Voter's ID/ PAN Card/ Adhaar Card
• Residence proof: Registered rental agreement/ Adhaar Card/ PAN Card/ Passport
• Age Proof: PAN Card or Passport
• Income Proof: Pension returns and Bank Statements for the last 6 months.

The documents to be furnished for PIOs and NRIs for a Home Loan are as follows:

• Application form with 3 passport-size photos.
• An attested copy of the latest Passport and Visa.
• Address proof with the current address overseas.
• Copy of the CDC or Continuous Discharge Certificate of Merchant Navy Employees.
• Government-issued PIO card.
• ID proof: Aadhaar Card, passport, Voter's ID, Driving License, or PAN Card.
• All documents for NRIs and PIOs may be attested by FOs, officers of the Indian Embassy, Overseas Notary Public or Consulate, officials of the brand, or any Indian Based sourcing outfits.
• Property papers:
• Authorization for construction
• Registered Sale of Agreement in case of Maharashtra, or stamped sale agreement or allotment letter.
• An occupancy certificate if the property is complete
• Approved plan copies or conveyance deed for a new property
• Share Certificate for Maharashtra
• Receipts for Property Tax Paid
• Utility and Maintenance bills
• Receipts or account details for all payments made to the builder or seller
• Last 6 months Bank Account details for any overseas account showing savings or salary.
• Loan Account Statement for 1 year, if applicable
• Income proof for salaried individuals:
• Valid work permit
• Contract of employment in English
• 3 months' salary certificate or slip
• Attested copy of recent Individual Tax Retur,n except for PIOs and NRIs in the Middle East or for Merchant Navy employees
• Income proof for non-salaried individuals:
• Address proof for business
• Income proof for self-employed professionals or business owners
• Attested copy of the last 2 years' Individual Tax Return, except for PIOs and NRIs in the Middle East or for Merchant Navy employees
• Bank Account Statement of overseas account for the last 6 months.

A Bank Statement or Passbook is necessary for a Home Loan for the following reasons:

• It aids banks in checking your average monthly income.
• EMIs paid towards any existing loan may be assessed using the Passbook.
• The bank can verify if you have the margin amount required for the loan, as it must reflect in the Passbook or Bank Statement. This may also reflect in your account statement as payments made to the builder or vendor.
• Lenders can assess the various income sources available to you.
• Assets mentioned in the Home Loan application are verified using the Passbook or the Bank Statement.
• The bank is also able to calculate your debt-to-income ratio using credits and debits reflected in the account statement.
• The bank ensures that there are no fraudulent transactions in your account or funds obtained from unknown sources before granting your loan.

A No Objection Certificate (NOC) is issued by the bank after you have paid all the EMIs and dues towards your loan. The NOC is extremely important for the following reasons:

• It helps remove the bank's lien from your property.
• You can get another loan.
• Your credit score improves.
• You will be able to sell your property only after obtaining an NOC.
• You can claim insurance if required.

Different factors affect your eligibility for a home loan, as mentioned below:

• Age: Every bank has a minimum and maximum age threshold for the applicant to be eligible for a loan.
• Income: To ensure that you have enough funds to make regular repayments towards your loans, banks require a minimum income for the applicant after making all necessary deductions. The higher the income, the more eligible the individual.
• Property value: Banks give you between 75% and 90% of your property value as the loan amount. The age of the property, location, resale value, and other factors also play a vital role as the property is provided as security against the loan.
• Credit Score: Your credit score is a reflection of your credit behavior. It shows if you are a reliable candidate to provide a Home Loan or not. Usually, banks require a Credit Score above 750 to sanction a Home Loan.