Canara Bank Home Loan Eligibility

Canara Bank is one of the most prominent public sector banks in India that has been offering banking and financial services since 1906. Headquartered in Bengaluru, Canara Bank is one of India's oldest banks. Along with attractive financial services and banking products to Indian customers, Canara Bank has pioneered innovative and attractive products for NRI customers as well. The bank offers Home Loans to its customers at attractive interest rates and with favorable terms and conditions. You can use the Home Loans not only for purchasing a ready possession apartment but also for purchasing a plot and building a home thereon, renovating or conducting home repairs, an extension on an existing house.

Canara Bank Home Loans have the following features:

• Purpose:
  • Purchase of an already built house/ flat
  • Construction of a new house/ flat
  • Purchase of a plot and constructing a house on it
  • Repairs, upgradation, renovation, expansion, and creation of additional amenities on an existing property.
  • Purchase of a second house/ flat even if you already have a house/ flat with or without a loan.
  • For taking over of the Home Loan from another bank (public sector/ private sector)/ NBFC/ HFC (rated externally as A and above).

• The bank offers Home Loans to all kinds of applicants including salaried individuals, self-employed professionals, and business owners, who have a regular source of income.
• You can get a loan amount of up to 4 times your gross annual salary as per the latest ITR/ITAO (if salaried), or up to 4 times of your average gross annual income for last four years (if business owner or self-employed person).
• For repairs and renovations, you can avail the maximum loan amount of 15 Lakhs.
• You can opt for prepayment with no additional charges
• The current interest rates for Canara Bank Home Loans vary between 8.70% to 95%, depending on the type of applicant, loan scheme, the income of the borrower, and loan amount.
• The maximum repayment tenure for Canara Bank Home Loans is up to 30 years (depending on the loan scheme, age of the borrower, and other eligibility factors).

Additional Info: Canara Bank Balance Check Number

Below are the eligibility criteria for different housing loan schemes of Canara Bank:

Housing Loan Eligibility Criteria

• Applicant's age should not be above 60 years at the time of loan application and the maximum age at loan maturity should not be more than 70 years.
• Applicant should be a confirmed salaried individual with minimum service experience of 3 years.
• The applicant can also be an individual engaged in business or a self-employed professional with a minimum business/profession experience of 3 years.

House Improvement Loan Eligibility Criteria

• Salaried individuals, self-employed professionals, and business owners who own a house/ flat.
• NRIs can also apply
• Salaried applicants should have a minimum net take home monthly salary of 25% of their gross salary or 2,000 after the deduction of the equated monthly instalment (EMI) for the proposed loan.
• Professionals and business owners should be earning a minimum annual income of 50,000 as per ITR.

Canara Site Loan Eligibility Criteria

• Creditworthy existing customers of the bank or new customers of the bank
• Applicant's age should not be over 60 years
• NRIs can also apply

Canara Home Loan Plus Eligibility Criteria

• Existing borrowers of Home Loan
• Applicant should have a good track record of Home Loan repayment for over a year
• The minimum age should be 18 years for loan application and the maximum age should not be over 65 years at loan maturity.
• Net take-home salary of the salaried individual should not be less than 40%, post deduction of the EMI towards Housing Loan and Canara Home Loan Plus.

Home Loan to NRIs Scheme Eligibility Criteria

• Applicant should be an NRI/POI with a foreign passport
• Applicant's age should be minimum 21 years at loan application and maximum 60 years at loan maturity.
• NRI applicant's spouse and close relative who are Indian residents can jointly apply for the loan with NRI.
• Applicant must have a steady source of income and minimum 2 years of employment abroad with valid work permit/ job contract to support the same.
• Applicant should have an NRI status of 3 years
• Net take-home salary of the salaried individual should not be less than 40%, post deduction of the proposed EMI.

Housing Loan to Agriculturists Eligibility Criteria

• Agriculturists, individuals engaged in allied activities such as Diary or Poultry activity, Horticulturists, Planters, etc. can apply for this loan.
• Applicant's age should be minimum 21 years at loan application and maximum 60 years at loan maturity.
• All agriculturists should own and cultivate agricultural land of over 5 acres of irrigated/ 10 acres of dry land.
• Applicant must have 2 years of satisfactory dealing record
• Net take-home income of the applicant should not be less than 25% (minimum 10,000) after the EMI deduction of the proposed loan.
• Agriculturists who are engaged in allied activities should have a minimum gross annual income of 5 Lakhs.
• The loan will be sanctioned only for those properties which are non-agricultural and have valid documents for using the loan for housing/ non-agricultural purposes.

Housing-cum-Solar Loan Eligibility Criteria

• Applicant's age should not be above 60 years at the time of loan application
• Applicant should be a confirmed salaried individual with minimum service experience of 3 years.
• The applicant can also be an individual engaged in business or a self-employed professional with a minimum business/profession experience of 3 years.
• Applicant should have a free rooftop for the installation of the Solar Equipment
• Net take-home income should be minimum 25% after deduction of the proposed EMI

Yuva Awas Rin Eligibility Criteria

• Salaried youth between the age group of 21 years - 45 years
• Applicant should have a minimum work experience of 2 years in Central Govt./ State Govt./ Reputed PSU/ Joint Stock Company/ Reputed Corporate/ Public Limited Company /Private Institution/ IT Company/ BT Companies, or as Lecturer/ Assistant Professor/ Professor in a College, Research Institute, and University.
• Salary of the applicant should not be less than 10,000 after deducting the proposed loan EMI.

Pradhan Mantri Awas Yojana Eligibility Criteria

• Age of the applicant should be minimum 21 years at the time of loan application and maximum 60 years at loan maturity.
• Annual household income required is:
• Up to 3 Lakhs for EWS beneficiaries
  • Above 3 Lakhs and up to 6 Lakhs for LIG beneficiaries
  • Above 6 Lakhs and up to 12 Lakhs for MIG I  beneficiaries
  • Above 12 Lakhs and up to 18 Lakhs for MIG II beneficiaries
• Carpet area of the house should be as follows:
  • EWS: up to 30 sq mt
  • LIG: 60 sq mt
  • MIG I: 120 sq mt
  • MIG II: 150 sq mt

Note: know about the Canara Bank Mini Statement Number service.

• Age of the applicant: Home Loans are long duration loans typically taken for 10 years or more. Hence, your age becomes a very important factor in deciding your Home Loan amount eligibility and its tenure. If you take up a Home Loan at a lower age, you have a long working life left to repay the Home Loan and hence you may be eligible for a higher loan amount or a longer duration loan. The maximum Home Loan tenure by Canara Bank is up to 30 years.
• Salary/ income of the applicant: Your salary or monthly income decides your capacity to service a Home Loan. Hence, your take-home monthly salary (in case of a salaried loan applicant) or monthly income (in case of self-employed applicant) is one of the most important criteria that govern your Home Loan eligibility. A person with a higher salary will be able to service a higher equated monthly instalment (EMI) every month compared to a person with a lower salary. Hence, the higher salaried loan applicant stands eligible for a higher loan amount compared to the one with a lower salary.
• Nature of employment: Before approving any loan, Canara Bank does a thorough check of the company you work for, in case you are salaried. The bank considers your total work experience, job stability, and nature of employment to decide your eligibility. Canara Bank requires a minimum income history of 3 years to be eligible for a Home Loan. For self-employed individuals as well, the bank thoroughly checks the type of work you do and requires minimum 3 years income history to determine your Home Loan eligibility.
• Value of property: The property for which you seek a Home Loan acts as a security for the bank. Hence, the market value of the property plays an important role in deciding whether to sanction a loan or not. Also, Canara Bank does not provide finance for the entire property value as Home Loan. The borrower has to pay some part of the total value of the property as down payment. The maximum Home Loan amount eligibility depends on the loan to value (LTV) ratio. Canara Bank provides Home Loan up to 90% LTV. The borrowers have to fund the remaining amount on their own.
• Availability of the co-applicant: If you want to be eligible for a higher loan amount, you should consider adding a co-applicant. The co-applicant can be your spouse or any other earning family member who has a good credit history and low monthly obligations compared to his or her income.
• CIBIL Score: CIBIL score reflects your past credit behaviour and provides a complete account of all your past borrowings, their repayments, and defaults if any. CIBIL stands for Credit Information Bureau (India) Limited and it captures all your repayment transactions. CIBIL score is calculated based on your credit behaviour. Higher the credit score means you have a higher propensity to repay a loan and hence bank may sanction your loan application. Canara Bank considers CIBIL as a primary barometer to gauge your credit behavior. Bank orders for a complete CIBIL report before deciding your loan eligibility. At Canara Bank, the minimum CIBIL score to be eligible for a Home Loan is 650.

To have a good credit score, follow the tips mentioned below:

• Pay your EMIs on time
• Keep a proper balance between secured and unsecured loans
• Utilise your credit limit sensibly and don't exhaust the entire limit
• Don't apply for a loan with the multiple lenders
• FOIR: Fixed Income to Obligation Ratio (FOIR) is used by Canara Bank to determine the Home Loan eligibility. It is one of the most important factors. All the current obligations of the borrowers such as current EMIs and Credit Cards are taken into consideration to ascertain the repayment capacity of the borrower. The minimum FOIR of 0.65 is must to be eligible for the Home Loan at Canara Bank.

Following are the tip to improve your eligibility for Canara Bank Home Loan:

• Clear all the existing short-term loans and Credit Card dues if any
• Show the income from other sources as well such as rent, bonus, etc. to increase repayment capacity.
• Apply for the joint loan with your spouse, parent or any other eligible co-applicant
• Maintain a good track record of all your payments
• Know the eligibility criteria beforehand
• Calculate the proposed EMI with the help of MyMoneyMantra's online EMI Calculator to know your EMI in advance, and apply for a loan accordingly.

The Home Loan Eligibility Calculator is very easy to use and helps the borrowers to know their eligibility prior to applying for a Home Loan. The Home Loan Eligibility Calculator is freely available on many websites and can be used a number of times to check your Home Loan eligibility and apply for the Home Loan amount accordingly.

Following are the benefits of using Home Loan eligibility calculator:

• Saves time:The borrower can save a lot of time by calculating the Home Loan eligibility at the comfort of home or on the go before applying for the loan. It does not require you to visit the bank branch often to know the eligibility criteria.
• Saves efforts: The Home Loan Eligibility Calculator helps you to save your efforts by doing all the multiple complex calculations online in a jiffy.
• An easy and better comparison: You can compare loan terms and conditions and other parameters to select your desire lender for the Home Loan. It helps the borrower to make an informed and well-thought decision.
• It's free of cost: The eligibility calculator is available for free of cost on many websites and can be used for end number of times.

You have to enter the following details to calculate your eligibility for Canara Bank Home Loan using Home Loan Eligibility Calculator:

• Gross monthly income
• Loan tenure
• Applicable Home Loan interest rate
• The total amount of other EMIs (if any)

After submitting all the details, the eligible Home Loan amount will be displayed on the screen.

Documents Required for Salaried Applicants

1. 2 latest passport-sized photographs
2. Address proof
3. Age proof
4. PAN Card's photocopy
5. Salary slips for the last 6 months
6. Latest original salary certificate with deductions details
7. Salary account bank statement for the last 6 months
8. Proof of service continuation of last 3 years
9. A mandate by the borrower stating to deduct loan EMI from salary
10. ECS mandate
11. Any other document(s) required by the bank

Documents Required for Business Owners/ Self-employed Individuals

1. 2 latest passport-sized photographs
2. Address proof
3. Age proof
4. PAN Card's photocopy
5. Balance Sheet and P&L account for the last 3 years
6. Copy of land records if the applicant also includes income from agriculture in ITR
7. A brief note about the nature of the business, establishment year, type of organisation, present banker, applicant's engagement and net worth in the business.
8. Where the applicant is not maintaining any savings or current account with the bank, then last 6 months' passbook sheet of an existing bank account.
9. Copy of the license from a local/ government authority (if required)
10. Any other document required by the bank

Documents Required for House Construction

1. Last 13 years' Title Deed of the property & link documents
2. Last 13 years' NIL Encumbrance Certificate
3. Property tax receipts (up to date)
4. Khata certificate/extract
5. Approved plan
6. Cost estimation in detail from Bank's panel Chartered Architect/Engineer
7. An affidavit/undertaking stating that borrower shall not violate the sanctioned plan
8. Copy of Lease Deed
9. Allotment letter issued by Co-operative Society/ Housing Board
10. NOC issued by Society/ Builder/ Association/ Housing Board
11. If the plot is allotted by the society: Society's bye laws, extract of resolution, title certificate, original payment receipts, original share certificate, building completion & occupation certificate (for ready-built flat), NA Order's photocopy, Index II copy, 7x12 extract copy, property register card extract, building commencement certificate.
12. Any other document(s) required by the bank
13. Last 3 years' land record and income proof (for Housing Loan to Agriculturists)

Documents Required for Purchasing Ready-built House

1. Khata certificate/extract
2. Approved plan
3. Last 13 years' Title Deed of the property & link documents
4. Last 13 years' NIL Encumbrance Certificate
5. Property tax receipts (up to date)
6. Sale of property agreement
7. Certificate by Panel Architect declaring that the built-up property is according to the sanctioned plan/ building bye laws.
8. An affidavit/undertaking by the borrower stating that the construction of the property is according to the sanctioned plan/ building bye laws.
9. Property seller's KYC documents (i.e. ID and address proof)
10. Valuation report issued by the Bank's panel valuer
11. Lease Deed's copy
12. Any other document(s) required by the bank

Documents for Purchase of Flats

1. Flat's sketch
2. Last 13 years' Title Deed of the property & link documents
3. Last 13 years' NIL Encumbrance Certificate
4. Sanctioned plan and license issued by the competent authority
5. Occupancy certificate's copy issued by the local authority
6. Khata certificate/extract
7. Property tax receipts (up to date)
8. Sale of property agreement with the applicant
9. Original Sale Deed in favour of purchaser executed by the builder
10. NOC from builder's banker (if project's finance is availed by the builder)
11. Builder's profile
12. Development agreement between land owner and builder
13. Original stamp duty receipts, original registration receipts, original receipts in favour of purchaser issued by the builder, building commencement certificate's copy, demand notice of builder, NA Order, ULC Order, Index II copy, 7x12 extract copy, property registration extract.
14. If the flats are built on a plot of land not owned by the builder: Power of Attorney's true copy executed in favour of the builder by the land owner.

Documents for Takeover of Loans

1. NOC from the existing banker regarding pre-closure
2. Sanction letter's copy
3. Account statement from the date of sanction
4. List of original documents which are held by the Transfer or bank with attested copies
5. OPL from transferor Bank
6. Any other document(s) required by the bank

Documents for NRIs

1. Completely filled Home Loan application with 2 latest passport-sized photographs
2. Identity proof - Copies of first 4 pages of Passport & page with Visa Stamp or IC/PIO card
3. Employment contract's copy
4. Valid work permit
5. Original latest salary slip/ certificate
6. ID card's copy issued by the present employer/ income proof (if business owner/ self-employed professional).
7. Salary certificate's copy attested by Consulate/ Employer/ Indian Embassy
8. Last 6 months' bank account statement/ passbook
9. Applicant's brief profile and work establishment
10. Previous employment details
11. Account statement or passbook of the overseas bank showing applicant's salary and savings
12. Residence proof - Driving licence or utility bills
13. Agreement of Sale/ Sale Deed
14. Copy of approved plan of the building
15. Copy of CDC (Continuous Discharge Certificate) if the applicant is employed in the Merchant Navy
16. Approval for construction/extension/purchase
17. Original NOC
18. Copy of order giving permission for land conversion (in the conversion of the agricultural land case)
19. Copy of builder tax receipt/ land tax receipt
20. For construction or purchase of a house: 13 years' no encumbrance certificate, original title deed, land tax receipt, possession certificate.
21. For flat purchase: Allotment letter, construction agreement, estimates payment schedule, a copy of the approved plan, undertaking from the builder in the format specified by the Bank.
22. Copy of the allotment letter of builder/ housing board/ cooperative society
23. A detailed cost estimate or valuation report by an approved valuer (for outright purchase of an existing flat/ house).
24. Notarised Power of Attorney: If the applicant authorises a third party to complete mortgage formalities/ execute the documents/ avail the loan instalments.
25. Any other document(s) required by the bank

Additional Info: Also check Documents Required For Home Loan