|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
5
|
10
|
15
|
20
|
25
|
30

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About Canara Bank Home Loan

Canara Bank offers some of the best Home Loan schemes and offers to meet the varied needs of the borrowers. It continually strives to provide the best service to its esteemed customers and patrons. Canara Bank is one of the largest and well known public sector banks in India. It has a wide network of branches across the nation. The Home Loan provided by Canara Bank can be used for the construction of the house, purchase of house/flat or for renovation or extension purpose. Canara Bank also offers loan to borrowers wishing to buy the second house. Canara Bank is known for its competitive interest rates and easy loan procedure.

Features of Canara Bank Home Loans

Below are the features of Canara bank Housing Loans:

  • Purpose of the loan: Canara Bank provides a Home Loan to its borrowers for the purchase of a new/ second-hand house, construct a house on a plot or renovate and upgrade the existing house. The housing loan from Canara Bank can also be used for the internal and external repairs of the house such as roofing, waterproofing, etc. The loan can also be used to make some aesthetic changes in the current residence.
  • The bank provides housing loans to all: Salaried employees, self-employed professionals, and non-professionals/ business owners.
  • The minimum age required to be eligible to apply for the Home Loan at Canara Bank is 21 years.
  • The property a borrower is wishing to buy itself acts as security/ mortgage to avail the Home Loan from Canara Bank.
  • The maximum Loan to Value (LTV) ratio available for Canara Bank Housing Loan is 90% of the cost of the property.
  • The maximum Home Loan tenure available is 30 years
  • The interest rates on the Home Loan range between 8.75% (8.70% for women) to 11.95%.
  • The lowest EMI per Lakh at Canara Bank on the housing loan is 783 at an interest rate of 8.70% for 30-year tenure.
  • The Canara Bank also facilitates Home Loan Balance Transfer facility wherein you can transfer your existing Home Loan from another lender to Canara Bank.
  • Processing fees: Canara Banks levies a processing fee of 0.05% on the Home Loan amount (minimum 1,500 and maximum 10,000).
  • Special schemes: Special interest rates, Home Loan schemes, and customised offers are offered by Canara Bank to its existing customers. The bank can also offer good interest rates to women borrowers. Some of the special loan offers at Canara Bank include:
    • Housing Loan
    • House Improvement Loan
    • Canara Site Loan
    • Housing-cum-Solar Loan
    • Housing Loan to Agriculturists
    • Canara Home Loan Plus
    • Yuva Awas Rin - CANYAR
    • Pradhan Mantri Awas Yojana
    • Home Loan to NRIs Scheme

Canara Bank Home Loan EMI Calculator

The fixed amount that a borrower needs to pay to the bank every month against the Home Loan for fixed loan tenure is the Home Loan EMI (equated monthly installment). The EMI has to be paid every month on the fixed date towards the repayment of the Home Loan.

The EMI Calculator plays a very important role in determining the equated monthly instalment (EMI) the borrower has to pay against the Home Loan from Canara Bank. The estimation of the EMI amount helps the borrower to plan finances accordingly and reduce the potential financial stress.

If the EMI amount calculated is more and does not fit into the monthly budget, the borrower can apply for lower Home Loan amount. Therefore, the online EMI Calculator can be used to determine the value of EMI as per the preference of the borrower. One does not have to do complex maths again and again manually, the various combination of interest rate, loan tenure and loan amount can be tried by a borrower to arrive at the preferable EMI amount.

The lowest EMI on the Home Loan is 787 per lakh at an interest rate of 8.75% for 30-year tenure (( 783 for women borrowers @ 8.70% interest rate).

Following is the EMI on Home Loan using Canara Bank Home Loan EMI Calculator at different tenures at the interest rate of 8.75%.

Loan Amount

Loan Tenure

 

15 years

20 years

30 years

25,00,000

24,986

22,093

19,668

50,00,000

49,972

44,186

39,335

75,00,000

74,959

66,278

59,003

1,00,00,000

99,945

88,371

78,670

As given in the above table, the EMI amount on the Home Loan changes as per the loan tenure. Though the rate of interest remains the same, the EMI amount increase or decreases as per the loan tenure. The longer the loan tenure the lower will be the EMI. It is advised to choose the loan tenure wisely to reduce the overall interest outgo.

The principal amount and interest payment together make the EMI on the Home Loan. With every payment of the EMI, the proportion of these two component changes even if the EMI is constant. The principal repayment proportions keep increasing and the proportion of interest keeps reducing with every monthly EMI the borrower pays.

The below-mentioned table shows the interest calculation at various Home Loan tenures. The Home Loan amount in the below table is 1 Lakh with the rate of interest of 8.75%.

  5 years 10 years 15 years 30 years

EMI when loan amount is 1 Lakh @8.75% interest rate

2,064

1,253

999

787

Total amount payable to bank (principal + interest)

1,22,823

1,50,392

1,79,901

2,83,213

Interest payable over the loan tenure

23,823

50,392

79,901

1,83,213

 The table gives us a clear understanding of the effect of the loan tenure on the EMI. The shorter the loan tenure, higher will be the EMI amount. For example, if you apply for the Home Loan of 1 Lakh for the period of 5 years at the rate of interest of 8.75% the total interest outgo will be 23,823 as opposed to the interest amount you will be paying if you apply for the same loan amount at the same rate of interest for the period of 30 years.

The overall outflow of the interest increases if you apply for longer tenure Home Loans. It is just to keep all these factors in mind and then take an informed and well-thought decision to finalise the Home Loan tenure. The Home Loan tenure can have a considerable impact on your EMI amount as well as your interest savings. 

Canara Bank Home Loan EMI Calculator Formula

The formula used by the EMI Calculator is P*r* (1+r)^n/([(1+r)^n]-1)

Here, for Canara Bank Home Loans:

P = Loan amount which ranges between 15 Lakhs to 5 Crores

r = Rate of interest/month, which starts at 8.75% (8.70% for women) at present

n = Tenure in months, which can be maximum 360 months for Canara Bank Home Loans

Factors Affecting Canara Bank Home Loan EMI

  • Loan amount: The Home Loan amount determines the EMI that a borrower will have to pay every month to the bank towards the repayment of the loan. The higher the loan amount the higher will be the EMI. The Canara Bank offers Home Loan of minimum 15 Lakhs up to maximum 5 Crores.
  • Interest rate: The interest rate plays a very important role in determining the EMI value. The current interest rate on Home Loans at Canara Bank is 8.70%. The higher the rate of interest levied by the bank the greater the EMI amount will be. Therefore, it is recommended to do complete research before choosing a lender for your housing loan.
  • Loan tenure: The maximum Home Loan tenure at Canara Bank is 30 years. The loan tenure can also be determined based on the age of the borrower while applying for the Home Loan. The longer the loan tenure the higher will be the EMI.
  • Occupation of the borrower:Canara Bank offers good interest rates to salaried employees as compared to self-employed individuals.
  • Type of loan opted for:The EMI amount also depends up to the type of Home Loan you are opting for. Different rates are offered on different schemes. Such as interest rate for Housing Loan is different from than that of CANYAR.
  • Type of borrower:The bank offers discounted interest rate to the women borrowers than their male counterparts. The interest rate for women starts at 8.70% at present whereas the interest rate starts at 8.75% for other categories of borrowers.

Tips to Decide the Right Amount of Home Loan EMI

  • Decide the loan amount you actually need: An estimation of the Home Loan amount is must before approaching the bank. The eligible Home Loan amount is derived based on the value of your property and income of the borrower. Since the Home Loan is a secured loan and involves a huge interest cost for a long tenure, it is recommended to apply for the minimum Home Loan amount. Also, it is important to choose the loan tenure taking into consideration current expenses and obligations.
  • Review your current obligations: A complete evaluation of all your current expenses including your lifestyle and current EMIs (if any) is must before applying for the Home Loan. This evaluation will help you to determine the EMI amount you can pay comfortably after meeting your current expenses. After arriving at the desired EMI amount you proceed towards finalising the loan tenure for your Home Loan.
  • Calculate your Canara Bank Home Loan eligibility: It is very important to know the eligibility prior to applying for the Home Loan at Canara Bank. The Home Loan eligibility is calculated on the basis of the repayment capacity of the borrower. Canara Bank provides Home Loan LTV up to 90%. The remaining margin amount has to be paid by the borrower from own funds. If the borrower does not have the capacity to pay 20% margin money, they can apply for higher LTV loans. However, higher LTV loans come with high EMI and are available on the high rate of interest.
  • Fixed Income to Obligations Ratio (FOIR): It is one of the most important factors considered by Canara Bank to estimate the repayment capacity of an applicant. All the current obligations such as EMIs and current expenses are taken into consideration to arrive at FOIR. The ratio of your obligations to income gives a bank the FOIR. FOIR helps the bank to determine and assess the borrower's capacity. This can be different from your own assessment. In such case, the borrower can readjust the Home Loan amount and apply again. The minimum FOIR of 0.65 is must to be eligible for the Home Loan at Canara Bank. The individuals with low FOIR are not considered by a bank for the Home Loan. Paying any short term loans with higher EMI will help the applicant to increase the FOIR.

Change in the Canara Bank Home Loan EMI

  • The Home Loan EMI remains unchanged at Canara Bank. The borrower can request for some change in EMI by applying a nominal charge to initiate the request to change the EMI amount.
  • If the rate of interest increases on the Home Loan availed under floating rate, the EMI shall remain constant only the loan tenure shall increase. If the loan tenure is crossing the permissible limit the Canara Bank will increase the EMI amount on the Home Loan.
  • The EMI will increase with each disbursement if the Home Loan is availed by the borrower under the tranched EMI scheme.
  • The borrower is allowed to make a prepayment of the Home Loan at NIL charges. The outstanding balance of the principal amount gets reduced with the prepayment on the Home Loan.
  • The borrower can opt to keep the EMI same and reduce the Home Loan tenure or can even choose to reduce the EMI and amount and keep the loan tenure same. Reducing the loan tenure will help the borrower to repay the loan faster and save the total interest outgo.

The borrower can opt for any one of the options depending upon the financial condition and preferences.

Importance of Calculating EMI Before Taking a Canara Bank Home Loan

It is very beneficial to calculate the Home Loan EMI prior to applying for the Home Loan. Some of the benefits of calculating the Home Loan EMI before applying for the loan at Canara Bank are given below:

  • If the EMI amount calculated is more than the monthly budget, you can consider readjusting the Home Loan amount to arrive at the affordable Home Loan EMI amount.
  • You can also plan your expenses and financial well in advance if you know the exact EMI amount you will be required to pay towards the repayment of your Home Loan.
  • You can also plan to prepay or foreclose the Home Loan if you are aware of the monthly EMI amount you will be required to pay. This will help you to manage the surplus amount.

How to Use MyMoneyMantra EMI Calculator to Calculate Canara Bank Home Loan EMI?

The Home Loan EMI Calculator at MyMoneyMantra is very easy to use. The user needs to follow a few simple steps mentioned below to calculate the Canara Bank Home Loan EMI using MyMoneyMantra's EMI Calculator:

  • Log on to the MyMoneyMantra's EMI calculator under the finance tools tab
  • You will be directed to a page where you need to enter all the loan parameters like Home Loan amount, interest rate, and loan tenure.
  • Click on the Calculate button after entering the required parameters
  • You will instantly get the monthly payable EMI amount on the Canara Bank Home Loan
  • You can apply for the Canara Bank Home Loan at MyMoneyMantra

Benefits of Using MyMoneyMantra's EMI Calculator

The most important benefit of MyMoneyMantra EMI Calculator is that you get the exact EMI amount you will be required to pay against the Home Loan that helps you plan the finances accordingly.

  • Instant access - anytime anywhere: It is very easy and convenient to access the online EMI calculator at MyMoneyMantra. One does not need to do the complex calculations, again and again, to arrive at EMI. The calculations are done in a jiffy without visiting the bank personally.
  • Accurate outcome: The online EMI Calculator gives you instant accurate results. Now calculating an EMI is no more a tedious and confusing task. It also reduces the chances of errors as the calculation is not done manually.
  • Saves you from time-consuming & complex calculations: The chances of confusion and errors are less when you use an online EMI Calculator. You can use the calculator to calculate different interest rates offered by different banks. The calculations are done in no time with online EMI Calculator.
  • Aids the financial planning process: The EMI Calculator can be of great help to plan the finances prior to taking the Home Loan. You can also change the loan parameters number of times to arrive at the comfortable EMI amount as per your monthly budget.
  • You can use the same EMI Calculator for every loan: The loan calculations are very simple and less time consuming with the EMI Calculator. This calculator can be used to get EMI for every type of loan. There are very few instances when the loan specific EMI calculator is required to get exact results.

FAQs on Canara Bank Home Loans

Is it allowed to foreclose my Home Loan at Canara Bank?

The applicant can foreclose the Home Loan at Canara Bank without pay any prepayment charges.

Is it possible to transfer my currently running housing loan from another bank to Canara Bank?

Yes, Canara Bank gives flexibility to the borrower to transfer their existing Home Loan from another bank to Canara Bank to get the maximum benefit on EMI, interest rate, and save money. 

What is the lowest EMI per lakh offered on Canara Bank Home Loan?

The lowest EMI offered on the Canara Bank Housing Loan is 783/lakh for women borrowers and 787/lakh for others (as on 25.04.2019).

What are the types of housing loans offered by Canara Bank?

The bank offers the following types of housing loans:

  • Housing Loan
  • Home Improvement Loan
  • Canara Site Loan
  • Canara Home Loan Plus
  • Home Loan to NRIs Scheme
  • Housing Loan to Agriculturists
  • Housing-cum-Solar Loan
  • Yuva Awas Rin - CANYAR
  • Pradhan Mantri Awas Yojana

What is the current 1-year MCLR of Canara Bank?

The current 1-year MCLR of Canara Bank is 8.65% (as updated on 07.03.2019).

How can I calculate my Canara Bank Home Loan EMI for free of cost?

You can easily calculate your EMI for Canara Bank Housing Loan using MyMoneyMantra's EMI Calculator. This online tool comes at no cost to you.

Are the results generated by MyMoneyMantra's EMI Calculator genuine?

Yes, the EMI Calculator available on MyMoneyMantra provides accurate results depending on the information entered by you.

Which factors affect my Home Loan EMI?

The Home Loan EMI is affected by several factors including the loan amount applied for, interest rate applicable, loan repayment tenure, your income, and so on.

Latest News on Canara Bank Home Loan

24.04.2019: Canara Bank fire engulfs loan documents

A fire recently broke out in Canara Bank Noida Sector 6 branch's record room on Tuesday morning. As per the reports, at least 4 fire tenders reached on the spot around 11.30 am evacuated the employees safely. The cause of the fire was not clear immediately, however, the fire department later linked it to a short circuit in the bank's UPS room.

16.04.2019: Canara Bank has become the first public sector bank in India that meets RBI's EMV mandate

ACI Worldwide, which is a global provider of real-time electronic payment & banking solutions, announced recently that Canara Bank has successfully rolled out a major functionality to support EMV cards acquiring across its huge ATM network and Aadhaar Authentication, leveraging UP Retail Payments solution of ACI to achieve market firsts.

16.04.2019: R A Sankara Narayanan appointed as the new MD & CEO of Canara Bank

Canara Bank has appointed R A Sankara Narayanan as its new MD & CEO until January 2020, following a government-issued notification on Monday. The bank in a notice to the stock exchanges, said that Narayanan took charge of the post on the same day. Earlier he was the chairman of Vijaya Bank, which merged with the Bank of Baroda with effect from 1st April, 2019.