Canara Bank

Canara Bank Loan Against Property

Apply Canara Bank Loan Against Property

About Canara Bank Loan Against Property

In present times, financial exigencies have become an integral part of life. No matter how hard you try to avoid them, there are chances that at a point in time, you will have to face the financial problems you dread. In such a situation, your savings come to your rescue and help you tide over tough times without any problems. However, in many cases, the requirement that you have might not be sufficed by your savings. Moreover, emptying your savings in one go will leave you vulnerable for the future, and you will need to start rebuilding your corpus from scratch, which is not an easy task.

You must, therefore, explore other options to meet your financial requirements other than using your savings. One of the best options that you can exercise is to avail a loan from banks or other financial institutions. In order to help their customers during times of financial difficulties, most banks and non-banking financial companies (NBFCs) in India offer a variety of loans. Different loans have different utility for customers and allow you to choose an option most suitable for your requirements. If the amount required is in lakhs or crores and the repayment tenure required is more than five years, then the best option at your disposal is to avail a Loan Against Property.

Canara Bank is one of the leading public sector banks in India and offers a wide range of financial services to its customers. Canara Bank has been offering its services since 1906 and over the years has diversified its service portfolio to ensure that the customers can access the latest financial solutions offered by the bank. Canara Bank is considered as one of the oldest public sector banks in India and enjoys an excellent reputation amongst the clients. The government of India nationalised this bank in the year of 1969 and paved the way for its expansion across the country, in urban as well as rural centres. Currently, Canara Bank has 6000+ branches across India and an extensive ATM network comprising of 8000+ ATMs across cities and villages.

Canara Bank has always been known to offer innovative financial products to its customers, including bank accounts and a variety of loans. Canara Bank has an extensive loan portfolio wherein individual as well as corporate customers can avail different types of loans suitable for their financial requirements. Personal loan, car loan, gold loan, home loan are some of the major types of loans available from Canara Bank, but one of the most popular offerings from the bank is the Loan Against Property.

Loan Against Property from Canara Bank is offered under the name of Canara Mortgage. Herein, borrowers need to mortgage their commercial or residential property with the bank and create a primary charge in favour of the bank. Canara Bank will then extend a Loan Against Property to the applicant based on the LTV (Loan to Value) ratio, which can go up to 50% of the value of the property or 10 Crores, whichever is lesser.

The money borrowed as the Canara Bank Loan Against Property can be used by the borrowers for meeting their non-speculative financial requirements. Individual borrowers can avail the facility of Loan Against Property for meeting their urgent and unavoidable personal expenses such as medical treatment, wedding or higher education expenses, repayment of debts, renovation of the property, and so on.

Non-individual borrowers can use the money from a Loan Against Property for the purpose of business expansion, purchase of commercial property, investment in machinery and equipment, or repayment of debt. Though there is no need to inform the bank regarding the ultimate use of money but using the money for speculative purposes such as investment in equities, commodities or gambling is not allowed.

Various benefits offered by Canara Banks Loan Against Property make it an ideal option for individuals who own a property and require a high-value loan to meet some urgent financial requirement.

What is a Loan Against Property?

Loan Against Property is a secured loan which you can avail from a financial institution by mortgaging a property registered under your name. In simpler terms, it is the kind of secured loan that you get by keeping your property as collateral. The lender would create a primary charge against the property and offer you the loan amount depending on the property value. In most cases, the maximum LTV (Loan to Value) ratio, followed by financial institutions in India is between 40-90%. The amount offered also depends on the credit profile and the income earned by the borrower.

Loan Against Property can help you out during many occasions. You can use this money of loan for your international trips, children's wedding, higher education, repayment of the debt, or just to avail any upcoming business opportunities. There are no restrictions on the usage of the amount, and you can sue the money for any genuine financial requirement.

There is one condition that is specified by most lenders offering Loan Against Property wherein you are not allowed to use the amount availed as a Loan Against Property for speculative purposes such as investment in equities or gambling. If the lender finds out that you have flouted this rule, they have the right to cancel the loan altogether and ask you to repay the amount.

Why Canara Bank Loan Against Property?

Canara Bank is on the leading and oldest banks in the country. It has served the nation for more than 100 years. Canara Bank is a big name in the financial industry and enjoys an excellent reputation amongst the customers across India. 

Canara Mortgage is one of the most popular offerings from Canara Bank and is highly sought after by its customers. This high-value loan comes with an extended repayment tenure and attractive interest rates, making it an ideal option for the customers facing paucity of funds. Canara Bank offers Loan Against Property for a variety of personal or business requirements allowing the customers to enjoy significant financial freedom while meeting their liabilities in a time-bound manner.

If you are wondering as to why you should opt for Canara Bank Loan Against Property, then here are some of the key benefits on offer for the customers:

  • The interest rate for Canara Bank Loan Against Property starts from as low as 11.50%
  • The maximum loan amount available under Canara Bank Loan Against Property is 10 Crores
  • Canara Bank follows a transparent process and levies no hidden charges
  • The maximum repayment tenure offered by Canara Bank can go up to 84 months
  • The processing fee charged by Canara Bank for its Loan Against Property is just 1% of the loan amount.
  • LTV ratio followed during Canara Bank's Loan Against Property can go up to 50% of the market value of the property.

The loan can be obtained against residential, commercial, and industrial properties.

Features and Benefits of Canara Bank Loan Against Property

The multiple features and benefits on offer for Canara Bank Loan Against Property make it a preferable option for the bank customers facing scarcity of funds.

Some of them are mentioned below:

  • Flexible repayment tenure: Canara Bank offers excellent flexibility in terms of repayment. The maximum repayment tenure available can go up to 84 months. This allows the borrowers with the benefit of lower equated monthly instalments (EMIs) and extended repayment tenure, thereby reducing the possibilities of default on repayments.
  • High-value loans: Canara Bank offers high-value loans of up to 10 crores or 50% of the property's value, whichever is less, under its Loan Against Property, making it ideal for customers looking for a high-value loan. These high-value loans can help you tide over any financial difficulties without any need to dip into your hard-earned savings.
  • Attractive interest rates: Canara Bank offers attractive interest rates for its Loan Against Property offers. The interest rates start from 11.50% per annum, making it a cheaper option than availing a personal loan. Low interest rates ensure that the interest cost you have to bear is also low, helping you save a lot of money over the extended repayment tenure.
  • No hidden charges: Canara Bank is a reputed public sector bank that offers a transparent working culture. The bank will disclose all the applicable charges upfront. This will help you understand the total cost which you have to bear in a given year against this loan. No other hidden charges will be levied by the bank, thereby helping you organise your repayments in a planned manner.
  • No prepayment charges: When you avail Canara Bank's Loan Against Property at floating rates, you enjoy the option of zero foreclosure charges. This facility allows you to foreclose your loan without incurring any additional charges. This translates into significant savings as not only you will save on the interest cost, but will also need not pay any foreclosure charges, which in some cases can go up to 6% of the value of the remaining loan amount.
  • Freedom to use the money: When you avail Loan Against Property from Canara Bank, you can use the amount as per your wishes. There is no need to inform the bank regarding the ultimate use of the money. This financial freedom helps you maximise the benefits from the loan.

Canara Bank Loan Against Property - Interest Rates

The interest rate for Canara Mortgage is linked to its 1-year MCLR, which is 8.50% (as updated on 07.08.2019). The interest rate s as follows:

Canara Mortgage/ Loan Against Property:  1-Year MCLR + 3% = 11.50%.

Interest rates for other Mortgage Loans offered by Canara Bank are:

Scheme Name Description Rate of Interest Current Interest Rate

Canara Site

1-Year MCLR + 1%

9.60%

 

 

Canara Rent (Loan Against Rent Receivables)

For Navratna PSUs, Fortune 500 Companies, AAA Rated Companies, MNCs, Banks, Insurance Companies

1-Year MCLR + 2%

10.50%

For General Companies

1-Year MCLR + 2.30%

10.80%

For Properties Leased out to Canara Bank

1-Year MCLR + 1.80%

10.30%

Canara Jeevan (Reverse Mortgage Loan Scheme for Senior Citizens)

1-Year MCLR + 1.50%

10%

Types of Canara Bank Loan Against Property

Canara Bank offers the following two more types of Mortgage Loans apart from Canara Mortgage (described above):

1. Canara Rent: This is a loan provided against rent receivables.

Purpose

To extend a loan to owners/lessors) of the property against rent receivables for helping them meet their business-related and/ or other genuine personal needs, but not for speculative purposes.

Loan amount

Up to 75% of the net rent receivables for the unexpired period of the lease, advance rent taken, net of TDS, and other applicable taxes (if any).

Repayment tenure

  • Up to 120 months or unexpired period of the lease, whichever is earlier
  • If the loan is granted against rent received from PSUs, Navarathna Companies, AAA rated reputed Companies, Canara Bank, Insurance Companies, tenure is up to 144 months or up to the lease period is considered.

Eligibility

  • Existing customers having satisfactory dealings
  • New customers having satisfactory OPL/market report
  • The property should have been rented or leased to Central/ State/ Semi Government Undertakings/ PSUs / Reputed Corporates/ Banks/ Financial Institutions/ Insurance Companies/ MNCs including the property rented/ leased out to Canara Bank's Branch/Office or Flat/ House leased or rented to the bank as Quarters to the bank's Officers/Executives.
  • If the tenant is a Corporate, their minimum external rating should be BBB and above.

2. Canara Jeevan: This loan is offered to meet the financial requirements of Senior Citizens who own self-occupied residential property.

Purpose

To meet the financial needs of Senior Citizens who own self-occupied residential property.

  • For supplementing their pension/other income
  • For maintenance of their family, and medical/emergency expenditure
  • For repaying an existing loan obtained for the residential property which is to be mortgaged.
  • For upgradation/renovation/extension of the residential property
  • For uses related to home maintenance/improvement/insurance of the residential property.
  • To meet any other genuine need

Loan amount

The loan amount is determined based on the following factors:

  • The age of the borrower and property/flat/house's assessed value
  • In case of independent house, the minimum loan amount offered is 5 Lacs and maximum 50 Lakhs.
  • In case of flats, minimum loan amount offered is 5 Lakhs and maximum 25 Lakhs.

Repayment tenure

The loan will become due and payable only in the case of death of the last surviving borrower or if he/she wants to sell the house or permanently moves out of the house.

Eligibility

  • Residential house/flat owners, who are Indian residents and above 60 years of age.
  • Property must be self-acquired and self-occupied as a permanent primary residence.
  • Property must be free from any encumbrance
  • Residual life of the property should be minimum 20 years
  • In case of flats, the flat's age should not be over 10 years
  • Couples are eligible as joint borrowers. In such cases, at least one of them should be more than 60 years of age and the spouse or joint borrower should be above 55 years of age.
  • In case of jointly-owned properties, the joint owner aged above 60 years should be the first borrower.
  • Commercial property is not eligible under this scheme
  • No loan will be granted against the ancestral property

Canara Bank Loan Against Property Eligibility Criteria

In order to be eligible for a Loan Against Property, financial institutions lay clear eligibility criteria which must be fulfilled by the borrowers.

Following are the main criteria to be met to avail Canara Bank Loan Against Property:

  • Indian residents and NRIs can apply for this loan
  • All the individual customers must have satisfactory dealings with the Canara Bank
  • NRI customers with their Indian resident close relatives as co-borrowers can also avail the facility of Canara Bank Loan Against Property.
  • Those customers who are new to the bank must be introduced by an existing customer and should be creditworthy with as per recent CIBIL report.

The NTH (Net Take Home) income of the applicant should be at least 20% per month or 20,000 per month, whichever is higher after meeting the EMI of the proposed loan.

Documents Required for Canara Bank Loan Against Property

In order to get your application for a Loan Against Property from Canara Bank approved, you need to submit the following documents:

Documents Required for Canara Mortgage

  • Stipulated loan application form along with a passport sized photographs: 2 copies each
  • Lease deed's copy
  • Proof of income of the applicant as well as a guarantor: ITR/ Income Tax Assessment Order
  • Title Deeds of the property/ EC, Legal Scrutiny Report/ latest tax paid receipt
  • Approved plan of the building
  • Certificate of balance in case the finance is obtained against the property from any other source
  • Past 2 years' Annual Financial Statements (for non-salaried individuals)

Documents Required for Canara Rent

  • Application form: NF 964
  • Credit Report-cum-Rating Sheet: NF 990
  • Registered Lease Deed which is executed between the lessor and lessee along with any of the following:
    • Tripartite Agreement (stamped as agreement-cum-power of attorney) which is executed between lessors, lessee, and the financing branch authorising the lessee to remit lease rentals directly to the financing branch.
    • A Power of Attorney (stamped and notarised) which is executed by the lessors in Canara Bank's favour authorising the bank to receive rents from the lessee (lodged with the lessee) and acknowledgement obtained.
  • Sanctioned plan's copy issued by the Competent Authority in seller/developer/earlier owner/land owner's name as the case may be.

Why Apply for Canara Bank Loan Against Property on MyMoneyMantra?

If you want to avail the Canara Bank Loan Against Property, making use of MyMoneyMantra's online platform can be advantageous.

Our Mortgage Specialists will help you through the entire loan process, including application, documents collection and submission, loan approval, and disbursal. We have partnerships with over 90+ banks and other financial institutions. With our decades of experience, we can get you the loan in the shortest time possible. You can also use our EMI Calculator to know your eligibility before applying for the loan.

You avail multiple benefits when you apply for Canara Bank Loan Against Property on MyMoneyMantra, as the entire process is effortless and convenient. Ours is an online platform that specializes in finance and loans.

Our experts can make your journey, right from the application to the disbursal, easy, instant, and hassle-free. Moreover, as all the operations are conducted online, you don't even have to leave the comfort of your home to avail the advantage and convenience offered by our services.

How to Apply for Canara Bank Loan Against Property through MyMoneyMantra?

To apply for Canara Bank Loan Against Property through MyMoneyMantra, all you have to do is go to our website and provide your information, and we will take care of the rest. This is what you have to do:

  • Go to MyMoneyMantra
  • Hover on the loans tab and select "Loan Against Property"
  • Enter your details and click on "Submit"
  • Enter the OTP that you will get to your registered mobile number

And, you are through; all you have to do now is to wait for a call from our representative who will walk you through the entire process of applying for and getting a Canara Bank Loan Against Property simply, quickly, and conveniently.

Other Products from Canara Bank

In addition to offering Loan Against Property at attractive interest rates, Canara Bank also offers a host of other products for its customers. Some of the most popular offerings from Canara Bank include:

List of Personal Banking Products

Housing Loan

Home Improvement Loan

Canara Site Loan

Canara Vehicle

Canara Cash (Shares)

Canara Budget

Teachers Loan

Canara Pension-General Public

Housing-Cum-Solar Loan

Swarna Loan (Gold Loan)

Canara Consumer Loan

Housing Loan To Agriculturists

Canara Home Loan Plus

PRADHAN MANTRI AWAS YOJNA

Home Loan For NRIs Scheme

YUVA AWAS RIN - CANYAR

Canara Vehicle To Agriculturists

Canara Pension (Canara Bank Ex-Employees)

International Services

Mutual Funds

Technology Products

Life Insurance

Health Insurance

General Insurance

Credit Cards

Debit Cards

Prepaid Cards

Gift Cards

International Travel Prepaid Cards

Consultancy Services

Depository Services

Ancillary Services

Approved Housing Projects

Saving Account

Package Saving Bank Account

Unclaimed Deposit

Inoperative Accounts

Savings Bank Account

Current Account

Recurring Deposits

Kamadhenu Deposit (Re-Investment Plan)

Canara Small Savings Bank Deposit Account

Canara Cham Deposit Scheme

Ashraya Deposit Scheme (For Senior Citizens)

Canara Basic Savings Bank Deposit Account

Canara NSIGSE Savings Bank Deposit Account

Canara SB POWER PLUS

Canara Jeevandhara-SB Account For Senior Citizens

Canara Privilege Current Account

Canara Dhanvarsha - A Flexi Recurring Deposit Scheme

Canara Payroll

Fixed Deposit

Canara Junior

SB Gold Scheme

List of Personal Banking Products

Current Deposits

Recurring Deposits

Fixed Deposits

Kamadhenu Deposits

Supply Chain Finance Management (SCFM)

Term Loans

Working Capital Finance

Infrastructure Financing

Export Finance

Syndication Services

Merchant Banking Services

IPO Monitoring Activity

TUF Schemes

Canara eTax

Other Products & Services

  • NRI Banking
  • MSME Banking
  • Canara Easy Fee
  • Priority Portal
  • Net Banking

How to Calculate Canara Bank Loan Against Property EMI?

Loan Against Property is a high-value loan that entails significant financial commitment over an extended repayment tenure. Therefore, it is essential for you to calculate your EMI or equated monthly instalment in order to understand the extent of financial commitment that you are about to make. As you have to repay the loan through EMIs only, you need to plan your repayments accordingly.

The EMI that you will have to pay for a Canara Bank Loan Against Property can be calculated using the MyMoneyMantra EMI Calculator. Here are the steps involved:

  • Click on the EMI Calculator that is mentioned under Financial Tools tab on the MyMoneyMantra
  • Enter the following details:
    • Amount of Loan
    • Rate of Interest
    • Loan Tenure
  • After entering these details, click on the Calculate button to get your EMI amount

Canara Bank Loan Against Property - Processing Fees and Other Charges

The bank levies the following charges on Mortgage Loans:

Processing fees

Canara Mortgage

1% of the loan granted, with a minimum of 5,000 and a maximum of 50,000

Canara Rent

0.5% of the loan amount, with a minimum of 5,000 and maximum of 1,00,000

Canara Jeevan

0.25% of the loan amount, with a maximum of 5,000

Documentation charges

Canara Mortgage

100 per lakh or part thereof, with a minimum of 1,000 and maximum of 25,000

Canara Rent

100 per lakh or part thereof, with a minimum of 1,000 and maximum of 25,000

Inspection charges

Canara Rent

  • Up to 10 Lakhs: 200 per inspection per borrower, maximum 600 per year.
  • Above 10 Lakhs: 300 per inspection per borrower or actual expenses borne, whichever is higher.
  • Out of pocket expenses (if any)

Canara Bank Loan Against Property - Customer Care

In order to offer its customers an easy way of addressing their grievances, Canara Bank's customer care department is always ready to provide the required assistance. If you have any query or complaint, you can call the customer care department through a toll-free number. The customer care service is available 24x7, except on 15th August, 2nd October, and 26th January.

  • Customer Care Phone Number (Toll-Free): 1800-425-0018
  • Head Office: Canara Bank Head Office, 112, J. C. Road, Bangalore - 560002
  • Email: imbhelpdesk@canarabank.com

FAQs

What is the maximum repayment tenure for Canara Bank Loan Against Property?

The maximum repayment tenure available is generally 84 months. However, if you are obtaining Canara Rent loan, it can be extended up to 120 months.

Who can avail Canara Bank Loan Against Property?

Canara Bank extends Loan Against Property salaried as well as non-salaried borrowers clients for personal and professional financial requirements. Senior citizens can also avail Mortgage Loan under Canara Jeevan scheme.

Are NRIs eligible for Canara Bank Loan Against Property?

Only NRIs with Indian resident close relatives as co-borrowers can avail the facility of Canara Bank Loan Against Property.

What is the processing fee for Canara Bank Loan Against Property?

The processing is 1% of the loan amount, with a minimum of 5,000 and a maximum of 50,000.

What is the maximum amount of loan offered under Canara Bank Loan Against Property?

The maximum amount of loan offered by Canara Bank against property is up to 50% of the property?s value or up to 10 Crores, whichever is less.

What kind of property can be kept as collateral to avail Canara Bank Loan Against Property?

Customers can keep the residential, commercial, and industrial property as collateral.

Does Canara Bank levy any hidden charges from the customer for a Loan Against Property?

No, the bank levies no hidden charges. All the applicable charges are disclosed to the customer at the time of application.

How long does it take for Canara Bank Loan Against Property to be approved?

Usually, a Canara Bank Loan Against Property is approved within 10-12 working days, provided that the borrower meets the eligibility criteria specified by the bank.

Latest News Snippets

24 July 2019: Canara Bank net profit up 17% in Q1 FY20

On Wednesday, Canara Bank stated that its net profit in the April to June quarter had risen 17% year on year basis to 329 Cr. Because of improves assets standard and lower provisions. In the statement made by the Canara Bank, this figure stood at 281.5 Cr. in Q1 of FY19.

18 June 2019: Canara Bank Board approves capital raising plan for FY 2020

The Canara Bank Board has approved the following in its meeting held on 18 June 2018:

  • To raise equity share capital share, amounting share up to 6,000 Cr. by way of Qualified Institutional Placements/ Right Issue/ ESPS/ Private Placement/ Preferential Allotment/ any other approved means during FY 2019-2020 subject to market conditions and necessary approvals.
  • To raise funds through Additional Tier I Basel lll Compliant Perpetual Bonds to the extent of 3,000 Cr. and Basel lll Compliant Tier ll Bonds to the extent of 3,000 Cr. during the FY 2019-2020 subject to market conditions and necessary approvals.

OTP is sent to your mobile number

Enter OTP

Resend OTP

×

Get Personal Loan up to 40 Lakh Chat
& get instant approval