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Canara Bank Home Loan Interest Rate
Canara Bank is among the oldest Indian scheduled Banks. Like other scheduled and non-scheduled Banks, Canara Bank offers its customers a variety of financial products including home loans. If you are looking to purchase a home or construct one on land you own, Canara Bank home loan is one option open to you. With interest rates as low as 8 and 9 percent per annum, this Bank is one of the most competitive institutions in the home loan market.
About Canara Bank Home Loan Interest Rate
Canara Bank Current Home Loan Interest Rate
Canara Bank has a wide range of home loan options that individuals can choose from:
| Name of Loan | Women Borrowers | Other Borrowers | |||
|---|---|---|---|---|---|
| Quantum of Loan | Rate of Interest | Present Rate of Interest | Rate of Interest | Present Rate of Interest | |
| 1. Housing Loan to Agriculturists 2. Housing Loan to NRIs 3. Yuva Awas Rin (CANYAR) 4. Housing Loan to Senior Citizens* 5. Pradhan Mantri Awas Yojna (PMAY)* 6. Housing Cum Solar Loan | Up to Rs 30 lakhs | 1 yr. MCLR + 0.05% | 8.75% | One year MCLR + 0.10% | 8.80% |
| Above Rs 30 lakhs and up to Rs 75 lakhs | One year MCLR + 0.15% | 8.85% | One year MCLR + 0.20% | 8.90% | |
| Rs 75 lakhs and above | One year MCLR + 0.20% | 8.90% | One year MCLR + 0.25% | 8.95% | |
| Loan for Home Improvement | One year MCLR + 2.45% | 11.15% | |
| Home Loan Plus of Canara Bank | Term Loan | One year MCLR + 2.80% | 11.50% |
| Canara Home Loan Plus | Overdraft | One year MCLR + 3.30% | 12.00% |
Canara Bank Home Loan Overview
Canara Bank home loans are not only for ready to move in properties but also for construction on land you own and even for purchasing a site for construction. You can also transfer your home loan from other institutions to Canara Bank subject to certain conditions.
Home loans are available to all Indian residents whether they are salaried, self-employed, professionals, or businesspersons. The amount of loan you would be available for would depend on which category you belong to among other factors.
The Canara Bank home loan is available for tenures ranging from 5 to 30 years and you can take a loan for an amount of up to 10 crores. The property or site you purchase is mortgaged to the Bank as collateral against the loan for the period of the repayment.
Canara Bank only charges a nominal processing fee of .50% of the loan amount subject to a minimum of Rs. 1500 and a maximum of Rs. 10,000. There are no charges for prepayment or foreclosure of loan under the floating rate of interest.
The maximum age for repayment of loan is 70 years. The EMI will be computed based on the present age of the applicant and the tenure subject to maximum age for repayment along with other eligibility conditions.
Factors that Affect interest Rate on your Home Loans
The interest rates charged for home loans vary from individual to individual depending on various factors. Some of the factors are listed below -
Credit Score
A credit score represents your creditworthiness and this is used by Banks to evaluate you for a loan. If your credit score is good and you have made repayments in previous loans in a timely manner, you may be eligible for lower interest rates.
Loan amount
The amount of loan you wish to take and the purpose for the same are also factors that can affect the interest you pay on your loan.
| Housing Loan Amount | New Flat/House | Old flat/House | |
|---|---|---|---|
| Up to 10 years old | Above 10 years old | ||
| Up to Rs 30 lakhs | 10% | 20% | 25% |
| Above Rs 30 lakhs and up to Rs 75 lakhs | 20% | 20% | 25% |
| Above Rs 75 lakhs | 25% | 25% | 25% |
If repairs and renovations, are to be done on an existing unit to create additional amenities than a uniform 25% margin on the cost of the project is applicable.
The margin is specified on the total cost of the project:
In housing loan when the cost of the project is up to 10 lakhs, registration charges, stamp duty and other documentation charges can be included in the cost of the project for specifying margin and LTV ratio.
When the cost of a housing project exceeds 10 lakhs the margin is specified on the basic project cost and will not include stamp duty, registration charges or any documentation charges. The minimum net income should be 25% after EMI.
Down Payment
Most institutions including Canara Bank require an upfront payment for the property before sanctioning loan. The amount you can put up as down payment factors into the amount of loan you need and therefore affects the rate of interest you will be charged.
Type of Interest
Canara Bank home loans are available with both fixed and floating rates of interest. Your final interest rate may vary depending upon the option you choose.
While this list is indicative of the factors affecting Canara Bank home loan interest rates, it may not be comprehensive. Also, the terms mentioned here are subject to change by the Bank at any time. It is therefore advisable to visit the Bank website or a Bank branch for current details.
Canara Bank Home Loan Eligibility
The following is the eligibility criteria for Canara Bank home loan –
- Individuals who are residents of India
- Individuals who have been in service for a minimum period of 3 years
- Minimum age for application is 21 years
- Maximum age for application is 60 years
- Maximum age for repayment of loan – age at the end of the term – is 70 years
- Businesspersons, entrepreneurs, proprietors, partnerships, and other forms of businesspersons or businesses must have been in existence for minimum 3 years
- Professionals must have been in practice for a minimum of 3 years
- Individuals above the age of 60 can also apply subject to certain conditions
There may be certain other criteria based on individual circumstances. Please visit the Bank website or Bank branch for more details.
How to calculate EMI on Canara Bank Home Loan
It can be difficult to align the amount of loan you need to your income and plan for repayment of loan. To help you do this, Canara Bank has an EMI calculator on its website, which allows you to compute the EMI for various loan amounts and tenures depending on your eligibility criteria. Though this might only be an estimate, it makes the decision making process easier.
Canara Bank Home Loan Status
Although the loan application process is simple, delays can occur when applicants do not meet eligibility criteria or some additional information is required. In such cases, you can track your application either online or by contacting the branch where you submitted the physical application form. The Bank will also intimate you from time to time via SMS on the mobile number you registered on your application.
How to Apply for Canara Bank Home Loan
You can apply for Canara Bank Home Loan by going to the nearest branch and filling in the application form or you can apply for the home loan online by going to the Bank website and filling the online application form. If you are eligible for the loan a Canara Bank representative will contact you for the documents and verification as well as other details.
Canara Bank Home Loan FAQs
1. Do the EMIs remain constant or change as years go by?
The EMIs remain constant during the term of the loan unless the customer asks for a change, which is approved by the Bank.
2. What is the tenure of Canara Bank Home Loan?
You can opt for tenure of 5 to 30 years depending on your age and certain other factors.
3. Why should I calculate The EMI before availing of the Home Loan?
If you calculate the EMI before you apply for the loan, you will know whether you can pay the equated monthly installment and you can reduce the amount of the loan to make the amount convenient for repayment.
4. Will EMI on home loan change in case of prepayment?
Canara Bank allows prepayment with nil charges on a home loan with a floating rate of interest. When you make prepayment the principal amount will be reduced. You can continue to pay the same EMI and decrease the loan tenure or decrease the EMI and keep the loan tenure the same.
5. Can an individual at 60 years of age apply for Canara Bank Home Loan?
Yes, but it is subject to certain conditions.
Canara Bank Home Loan Interest Rate - Customer Reviews
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