Canara Bank Home Loan Interest rate
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About Canara Bank Home Loan

Canara Bank is a public sector bank, which offers different banking services to its customers. It has a variety of Home Loan schemes that offer attractive and affordable Home Loans at reduced rates of interest. There are different housing loan schemes which are available for the non-resident Indians (NRIs) as well. There are various purposes for which housing loan is availed like buying a new house, building or constructing a house, purchasing a plot or a land, undertaking a repair or renovation or any modification for the house, upgradation of the house, and so on. The Canara Bank Home Loan can also be utilised for acquiring a second home, or flat where the applicant has a home with or without any Home Loan in advance. 

Canara Bank Home Loan Features

The Key features of Canara Bank Home Loans are:

  • Canara Bank Home Loans can be availed for various purposes, such as:
    • Purchase of a house/ flat already built
    • Construction of house/ flat
    • Purchase of a plot and construction of a house thereon. In case of composite Housing Loans (loan for plot purchase and house construction on it), applicant can get a loan amount of up to 60% of the eligible loan amount for plot purchase.
    • Repairs, renovation, upgradation, expansion, and creation of additional amenities on existing property with a ceiling of 15 Lakhs in case of repairs and renovations.
    • Purchase of a second house/ flat even if the borrower is already having a house/ flat with or without loan.
    • For taking over of the Home Loan liability from other Public Sector Banks/ Private Sector Banks/ NBFCs/ HFCs (rated externally as A and above). The takeover from NBFC or HFC is available only for salaried borrowers with due diligence and on ensuring that the assessment by the NBFC is acceptable as per the bank's policy guidelines.
  • The bank offers housing loans to all - salaried individuals, self-employed professionals, and business owners, having 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), 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, the maximum loan amount available is 15 Lakhs.
  • You can opt for prepayment with no additional charges

Canara Bank Home Loans Interest Rates

The Canara Bank Home Loan interest rates are linked to its 1-year Marginal Cost of Funds Based Lending Rate (MCLR) which is 8.65% (as updated on 07.03.2019).

Canara Bank Home Loans Interest Rates

Type of Scheme Loan Amount Interest Rate for Women Borrowers Interest Rate for Other Borrowers

Housing Loan/ Housing Loan to Agriculturists/ Housing Loan to NRIs/ Yuva Awas Rin (CANYAR)/ Housing Loan to Senior Citizens/ Pradhan Mantri Awas Yojana (PMAY)/ Housing Cum Solar Loan

 

Up to 30 Lakhs

1-Year MCLR +  0.05%: 8.70%

1-Year MCLR +  0.10%: 8.75%

Above 30 Lakhs Up to 75 Lakhs

1-Year MCLR +  0.15%: 8.80%

1-Year MCLR +  0.20%: 8.85%

Above 75 Lakhs

1-Year MCLR +  0.20%: 8.85%

1-Year MCLR +  0.25%: 8.90%

Housing Loan CRE (3rd & subsequent dwelling unit)

Up to 30 Lakhs

1-Year MCLR +  0.55%: 9.20%

1-Year MCLR +  0.60%: 9.25%

Above 30 Lakhs Up to 75 Lakhs

1-Year MCLR +  0.65%: 9.30%

1-Year MCLR +  0.70%: 9.35%

Above 75 Lakhs

1-Year MCLR +  0.70%: 9.35%

1-Year MCLR +  0.75%: 9.40%

Home Improvement Loan

All Loan Amounts

1-Year MCLR +  2.45%: 11.10%

Canara Home Loan Plus

Term Loan

1-Year MCLR +  2.80%: 11.45%

Overdraft

1-Year MCLR +  3.30%: 11.95%

The Factors Affecting Canara Bank Home Loan Rates of Interest

The interest rates applied on Home Loans are calculated on the basis of the bank's internal cost of raising new funds, and borrower's occupation, income level, repayment capacity, and the type of property. Here are some common factors that can affect your Canara Bank Home Loan Interest Rate:

  • The salary of the borrower:The income or salary of an individual helps the bank in identifying the interest rate to be applied on the loan. Usually a higher income helps in getting a lower interest rate.
  • The loan amount applied for:The total amount of the Home Loan that is borrowed from the bank has a major affect on the interest rate that is charged for the same. As the loan amount increases, the rate of interest decreases.
  • Type of borrower: The bank offers different interest rates for women Home Loan borrowers. Similarly, the rates will vary for a salaried, self-employed, business owner, and pensioner.
  • Type of loan:The bank offers different interest rates for different loan schemes. For instance the rate of interest for Housing Loan is lower than the rate of interest for Housing Loan CRE (3rd & subsequent dwelling unit).
  • Existing relationship with the bank: Usually banks offer reduced Home Loan interest rates to their existing customers.

The Tips to Reduce Canara Bank Home Loan Rate of Interest

  • Opt for a shorter tenure:The rate of interest for a Home Loan is affected by its repayment period. The shorter the tenure of the loan, the lower is the total interest paid.
  • Increase EMIs: By increasing the amount of EMI to be paid, it will not only reduce the total interest paid but it will help you to also pay the loan amount faster.

Canara Bank Housing Finance Home Loan Processing Fee and Other Charges

In addition to Home Loan interest rates, Canara Bank also has some other charges which include:

Types of Charges Amount

Processing fee

  • Housing Loan to NRIs: 0.10% of the loan amount (minimum 500 and maximum 10,000)
  • For All Other Home Loan Variants: 0.50% of the loan amount (minimum 1,500 and maximum 10,000)

 

Prepayment charges

NIL

How to Apply for a Canara Bank Home Loan?

MyMoneyMantra is an online partner that helps you to apply for a Home Loan online. This online procedure is very simple and instant. You just have to go to the Home Loan section at MyMoneyMantra's home page and follow the instructions that are given. It has a sequence of steps to be followed. Your application process will be processed online and then our Mortgage Specialists will get in touch with you to discuss the further process. You will be assisted and directed by our Home Loan advisor in order to ensure that the entire process is smooth and you get the best deal as per your requirements.

Types of Housing Loans Offered By Canara Bank

Canara Bank offers the following types of Housing Loan schemes:

  • 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

Canara Bank offers customised schemes for specific customer segment designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Housing Loan

Purpose

This loan can be availed for:

  • Purchase of a house/ flat already built
  • Construction of house/ flat
  • Purchase of a plot and construction of a house thereon. In case of composite Housing Loans (loan for plot purchase and house construction on it), applicant can get a loan amount of up to 60% of the eligible loan amount for plot purchase.
  • Repairs, renovation, upgradation, expansion, and creation of additional amenities on existing property with a ceiling of 15 Lakhs in case of repairs and renovations.
  • Purchase of a second house/ flat even if the borrower is already having a house/ flat with or without loan.
  • For taking over of the Home Loan liability from other Public Sector Banks/ Private Sector Banks/ NBFCs/ HFCs (rated externally as A and above). The takeover from NBFC or HFC is available only for salaried borrowers with due diligence and on ensuring that the assessment by the NBFC is acceptable as per the bank's policy guidelines.

Eligibility

  • 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 a minimum service experience of 3 years.
  • Applicant can also be an individual engaged in business or a self-employed professional with a minimum business/profession experience of 3 years.

Features

  • Maximum repayment tenure: Up to 30 years or applicant attaining the age of 70 years (whichever is earlier)
  • Repayment holiday: 2 months
  • Loan amount: You can get a loan amount of up to 4 times your gross annual salary as per the latest ITR/ITAO (if salaried), and 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, the maximum loan amount available is 15 Lakhs.

House Improvement Loan

Purpose

This scheme helps the customer to purchase household items such as consumer durables, air conditioners, fridge, furniture, fans, and so on.

Eligibility

  • 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.

Features

  • Loan amount: Up to 2 Lakhs
  • Acceptable Security: The assets which are created using the loan or use of house/flat as mortgage.
  • Loan tenure: Up to 60 months

Canara Site Loan

Purpose

It is a loan scheme for purchasing a housing site from State Development or Town Planning Development, Central Government, and State Government Local Authorities exclusively or in partnership with any private sector entity, or from any other Government constituted body for distribution of sites if such layouts are approved by the concerned statutory authority.

Eligibility

  • 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

Features

  • Loan amount: Gross annual salary/ income of 4 years or 75% of the cost of the site (whichever is less).
  • Loan period: 10 years or before the borrower turns 65 years old
  • Acceptable Security: The proposed plot will be mortgaged as security
  • Takeover of loan account from other banks is permitted if the applicant fulfills the original sanctioned loan for the above purpose.

Canara Home Loan Plus

Purpose

It is a Home Loan top up scheme for existing housing loan customers. The loan can be used for any purpose (except for speculative reasons).

Eligibility

  • 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.

Features

  • Loan tenure: 120 EMIs or period left to pay off an existing loan. Extended till maximum age of borrower reaches 70 years (whichever is earlier).
  • Loan amount: Up to 75% of the cost of the property
  • For salaried class: Maximum loan amount is limited to 10 months' gross salary of the applicant (maximum 25 Lakhs).
  • For non-salaried class: Maximum loan amount is limited to 75% of applicant's 3 years average gross income (maximum of 25 Lakhs).
  • Applicant can choose either Overdraft or Loan Facility (subject to meeting the terms and conditions of the bank).

Home Loan to NRIs Scheme

Purpose

This scheme is perfect for NRIs wanting to purchase a house/ plot, construct a house, renovate/ upgrade/ repair/ extend an existing home, or transfer an existing Home Loan to Canara Bank.

Eligibility

  • 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.

Features

  • Maximum repayment tenure: Up to 30 years or applicant attaining the age of 70 years (whichever is earlier)
  • Repayment holiday: 2 months
  • Loan amount: You can get a loan amount of up to 4 times your gross annual salary as per the latest ITR/ITAO (if salaried), and 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, the maximum loan amount available is 15 Lakhs.
  • Higher quantum of up to 5 years' gross annual salary/ income is provided to selective customers.

Housing Loan to Agriculturists

Purpose

This is a loan scheme for agriculturists to purchase a house/ flat, construct a house/flat, purchase a plot and construction thereon.

Eligibility

  • 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.

Features

  • Maximum repayment tenure: Up to 30 years or applicant attaining the age of 70 years (whichever is earlier)
  • Repayment holiday: 2 months
  • Loan amount: You can get a loan amount of up to 4 times your gross annual income
  • For repairs and renovations, the maximum loan amount available is 15 Lakhs
  • Takeover of the Home Loan from other recognised financial institution is also available

Housing-cum-Solar Loan

Purpose

This is a loan scheme for:

  • Installing grid-connected Rooftop Solar Photovoltaic (PV) System as a part of Home Loan/ without Housing Loan.
  • Purchasing Solar Equipment is permitted to applicants who have subsisting Housing Loans with the bank.
  • Purchase of Solar Equipment is permitted to applicants against the mortgage of their residential/ house property that has free rooftop for installation of the Solar Equipment even without a Housing Loan.

Eligibility

  • Applicant's age should not be above 60 years at the time of loan application
  • Applicant should be a confirmed salaried individual with a minimum service experience of 3 years.
  • 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

Features

  • Maximum repayment tenure: Up to 20 Years
  • Housing Loan amount component:
  • 4 times of applicant's gross annual income (GAI) for General Housing Finance Scheme/ Housing Loan Scheme for NRIs
  • 4 times of applicant's average annual income for Housing Loan to Agriculturists
  • 6 years gross salary for Yuva Awas Rin Scheme
  • Solar Loan amount component:
  • 20% of eligible Housing Loan quantum OR 80% of the cost of the installation of solar system OR 10 Lakhs (whichever is less).
  • You are also eligible for the following subsidies under this loan scheme:
  • 30% of benchmark cost: In general States
  • 70% of the benchmark cost: In special States, like North-eastern States including Sikkim, Himachal Pradesh, Uttarakhand, Lakshadweep, J&K, and Andaman & Nicobar Islands.

Yuva Awas Rin

Purpose

This scheme provides loans only to earning youth to construct a house, buy a plot and construct a house on it, renovate an existing house, buy a completed flat/house, buy a second property, or transfer the existing Home Loan to Canara Bank.

Eligibility

  • 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.

Features:

  • Loan amount: Up to 6 years gross annual salary as per latest ITR/ Form 16. For repairs and renovations, the maximum loan amount available is 15 Lakhs
  • Loan repayment tenure: Up to 30 years or before the borrower turns 70 years old, whichever is sooner.
  • Moratorium period: 2 months for purchasing a completed flat/ ready built house/ takeover loan, and 36 months for loans used for construction purpose.
  • Free Credit Card is available to the applicant with a suitable limit as per their income level
  • Third party guarantee is good for loan amount

Pradhan Mantri Awas Yojana

Purpose

This scheme provides loans only to individuals from the EWS, LIG, and MIG. It helps to purchase a house/ flat, construct a house, renovate, repair, or add rooms to an existing unit, buy a completed flat/ house, buy a second property, or transfer the existing Home Loan to Canara Bank.

Eligibility

  • 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 12 Lakhs for MIG I  beneficiaries
  • Above 12 Lakhs and up to 18 Lakhs for MIG II beneficiaries
  • Carpet area of 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

Features

  • Loan amount: 4 times of gross annual income with net take-home of 40% after deducting the EMI of the proposed loan (maximum 12 Lakhs for EWS, 24 Lakhs for LIG , 48 Lakhs for MIG I, and 72 Lakhs for MIG II beneficiaries)
  • Repayment tenure: The loan has to be repaid within 20 years including the moratorium period.

FAQs on Canara Bank Home Loan Interest Rate

Can I foreclose my housing loan with Canara Bank? What are the charges that are applicable?

You can foreclose the Home Loan with Canara Bank at zero charges.

What is the maximum repayment tenure for Canara Bank housing loan?

The maximum repayment tenure available for the Canara Bank Housing Loan is 30 years.

Can I transfer the Home Loan from another bank to Canara Bank?

You can transfer the presently running housing loan with a hassle-free process to Canara Bank by availing their Home Loan Balance Transfer facility.

Can I club my partner's income with mine to apply for a joint Home Loan with Canara Bank?

Yes. You can add your spouse's income to yours so as to increase your eligibility for Canara Bank Home Loan. The spouse can be a co-owner or the guarantor of the property.

What is the standard benchmark that is applicable for a Home Loan with Canara Bank?

The benchmark applicable for Canara Bank housing loan is one year MCLR.

How does part pre-payments affect the Canara Bank Home Loan EMI?

Part pre-payments help you to reduce the amount that is outstanding and this will also reduce the interest component that is due for payment.

How to increase the Home Loan eligibility with Canara Bank?

In case, your spouse or family members are earning well, you can make them as a co-applicant of the loan and hence the combined earnings will also increase your eligibility.

How will the rate of interest with Canara Bank Home Loan change in future?

The floating rate on Home Loan is linked to its 1-year MCLR, which is currently 8.65% (as updated on 07.03.2019). In case the bank offers a housing loan at 8.70% then it applies a premium of 0.05% to its MCLR rate in order to arrive at this housing loan rate. When the RBI increases the rates, then the bank also increases its MCLR rate and the applicable rate of interest for all its current and new housing loans would increase and vice-versa.

What is a moratorium or holiday period?

A moratorium/ holiday/ waiting period in context of Home Loa is a time during the term of the loan when the borrower does not need to make any repayment.

What type of interest rate is applicable on Canara Bank Housing Loan?

Canara Bank charges floating interest rates on its housing loans. These rates are linked to the 1-year MCLR of the bank.

Canara Bank Housing Loan News

07.03.2019: Canara Bank revises its MCLR

The bank has revised its marginal cost of funds based lending rate (MCLR) on 7th March, 2019. The revised MCLR stands at 8.65%. The previous MCLR was 8.70%. The revised MCLR has resulted in reducing the interest rate on Home Loan. The current housing loan interest rates at Canara Bank start at 8.70% per annum.

12.03.2018: The Canara Bank holds expo on retail loans

In order to provide a chance to the customers to avail retail loan products, Canara Bank organised a mega retail expo in the premises of the bank last week. As per the sources, more than hundred customers attended the retail expo in order to avail loans and received leads up to the extent of 122 Crores.

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