Affordable and Flexible: Apply Canara Bank’s Housing Loan

Introduction

Canara Bank Housing Loan is a loan scheme that helps you to buy your dream home with ease and convenience. Whether you want to purchase a ready-built house or flat, construct a house or flat on your own land, buy a plot of land and construct a house thereon, or acquire a second house or flat, Canara Bank Housing Loan can cater to your needs. You can also use the loan for repairs, renovation, expansion, upgradation, and furnishing of your existing house or flat. Canara Bank Housing Loan offers attractive interest rates, flexible repayment tenures, low processing charges, and other benefits to make your home loan experience hassle-free and rewarding. You can apply online or offline for Canara Bank Housing Loan and track your application status easily. You can also check your eligibility and EMI using online calculators provided by the bank. If you are interested in knowing more about Canara Bank Housing Loan, please read on.

Benefits and Purposes of Canara Bank Housing Loan

Canara Bank Housing Loan is a loan scheme that helps you to buy your dream home with ease and convenience. Here are some of the benefits and purposes of Canara Bank Housing Loan:

Benefits:

• You can avail a loan amount up to Rs. 10 crore, depending on your income and repayment capacity.
• You can enjoy a lower interest rate, starting from 8.85% p.a. for general borrowers and 8.75% p.a. for women borrowers.
• You can repay the loan in flexible tenures, ranging from 5 to 30 years.
• You can save on processing charges, which are only 0.50% of the loan amount, subject to a minimum of Rs. 1,500 and a maximum of Rs. 10,000.
• You can get a complimentary credit card with the loan.
• You can also avail additional loans for repairs, renovation, expansion, upgradation, and furnishing of your house.

Purposes:

• You can use the loan for purchasing a ready-built house or flat, or constructing a house or flat on your own land.
• You can use the loan for buying a plot of land and constructing a house thereon. However, the loan amount for the plot should not exceed 60% of the total loan amount.
• You can use the loan for acquiring a second house or flat, if you already own one with or without a loan.
• You can use the loan for taking over your existing home loan from another bank or financial institution.

Who can apply for Canara Bank Housing Loan?

• Canara Bank Housing Loan is available to individuals who are salaried, self-employed, professionals, businessmen, agriculturists, NRIs, PIOs, and OCIs.

• The applicant should be at least 21 years old and not more than 65 years old at the time of loan application. The maximum age at loan maturity should not be more than 70 years.

• The applicant should have a satisfactory repayment track record for the past one year.

• The applicant should have a regular and stable source of income to repay the loan.

How much loan amount can be availed?

• The loan amount depends on the income and repayment capacity of the applicant, the cost of the property, and the margin requirement.

• There is no upper limit on the loan quantum, subject to income eligibility.

• For salaried employees, the loan amount can be up to 10 months’ gross salary. For non-salaried employees, the loan amount can be up to 75% of the average gross income of the last three years.

• For repairs and renovation of the house or flat, the maximum loan amount is Rs. 15 lakh. However, a higher amount may be considered on a case-to-case basis.

What is the margin requirement?

• The margin is the difference between the cost of the property and the loan amount. It is the amount that the borrower has to contribute from his or her own sources.

• The margin varies depending on the age and type of the property and the loan amount. Here are some examples of the margin requirement:

Loan Amount	New House/Flat & Old House/Flat (Up to 10 Years Old)	Old House/Flat (>10 Years Old)
Up to Rs. 30 lakh	10%	25%
Above Rs. 30 lakh & Up to Rs. 75 lakh	20%	NA
Above Rs. 75 lakh	25%	NA

What is the security or collateral required for Canara Bank Housing Loan?

• The security or collateral required for Canara Bank Housing Loan is the equitable mortgage of the property that is financed by the loan. This means that the borrower transfers the ownership of the property to the bank as a security, but retains the possession and use of the property.

• In case of lease rental discounting, where the loan is given against the future rent receivables of a leased property, the security will be the equitable mortgage of the leased property and the assignment of lease rentals in favor of the bank. The value of the leased property should be at least 100% of the loan amount. If equitable mortgage is not possible, the security will be by mortgaging an alternate property with value not less than 150%.

• In some cases, the bank may also require a third party guarantee of person/s of adequate net worth as an additional security.

What is the repayment period and mode of payment for Canara Bank Housing Loan?

• The repayment period for Canara Bank Housing Loan depends on the loan amount, income and repayment capacity of the borrower, and the age of the borrower at loan maturity.

• The maximum repayment period for Canara Bank Housing Loan is 30 years or until the borrower reaches the age of 75 years, whichever is earlier.

• The mode of payment for Canara Bank Housing Loan is through equated monthly installments (EMIs), which are calculated based on the reducing balance method. This means that the EMI amount decreases as the principal amount reduces over time.

• The borrower can choose to pay the EMIs through post-dated cheques, standing instructions, or electronic clearing system (ECS).

What are the prepayment options and penalties for Canara Bank Housing Loan?

• Prepayment is the option to pay off the remaining loan amount in one go instead of in EMIs. Prepayment can help reduce the interest cost and save money in the long run.

• Canara Bank allows prepayment without any charges in case of floating rate home loans. Floating rate home loans are those where the interest rate varies according to market conditions.
• However, in case of fixed rate home loans, where the interest rate remains constant throughout the loan tenure, Canara Bank may levy a prepayment penalty of 2% on the outstanding balance if the prepayment is made from sources other than own funds. Own funds are those that are not borrowed from any other lender.

• The borrower can choose to either keep the EMI amount the same and reduce the tenure or reduce the EMI amount and keep tenure the same after prepayment.

What are the KYC documents required for Canara Bank Housing Loan?

KYC stands for Know Your Customer, which is a process of verifying the identity and address of the loan applicants. The KYC documents required for Canara Bank Housing Loan are as follows:

Identity Proof: Any one of the following documents can be submitted as identity proof:

• Aadhaar Card
• PAN Card
• Passport
• Driving License
• Voter ID Card
• ID Card issued by Government or PSU

Address Proof: Any one of the following documents can be submitted as address proof:

• Aadhaar Card
• Passport
• Driving License
• Voter ID Card
• Utility Bill (not more than 3 months old)
• Bank Statement (not more than 3 months old)
• Rent Agreement (if applicable)

What are the income proof documents required for Canara Bank Housing Loan?

Income proof documents are required to show the income and repayment capacity of the loan applicants. The income proof documents required for Canara Bank Housing Loan vary depending on the employment status of the applicants:

For Salaried Applicants:

• Salary Slip or Certificate for the last 3 months
• Form 16 or Income Tax Returns (ITR) for the last 3 years
• Bank Statement showing salary credit for the last 6 months

For Self-Employed Applicants:

• Business Profile or Proof of Business Existence
• Income Tax Returns (ITR) with computation of income for the last 3 years
• Balance Sheet and Profit and Loss Account for the last 3 years, audited by a Chartered Accountant
• Bank Statement showing business transactions for the last 6 months

What are the property documents required for Canara Bank Housing Loan?

Property documents are required to show the legal ownership and valuation of the property that is financed by the loan. The property documents required for Canara Bank Housing Loan depend on the type and age of the property and the purpose of the loan:

For Purchase of a Ready-Built House or Flat:

• Title Deeds of the Property and Link Documents for the last 13 years
• Encumbrance Certificate for the past 13 years
• Khata Certificate or Khata Extract
• Up to date Tax Paid Receipts of the Property
• Copy of the Approved Plan and Sketch of Flat
• An Affidavit-cum-Undertaking from the Applicant declaring that the Built Up Property has been constructed as per the Sanctioned Plan and/or Building Bye-Laws
• Completion Certificate by Local Authority
• Allotment Letter of Co-operative Society/Housing Board (wherever applicable)
• Agreement of Sale of Property
• Original Registration Receipts and Stamp Duty Receipts (if any)
• NOC from Society/Association/Builder/Housing Board (wherever applicable)
• KYC Documents of Seller of Property

For Construction of House or Flat:

• Title Deeds of the Property and Link Documents for the last 13 years
• Encumbrance Certificate for the past 13 years
• Khata Certificate or Khata Extract
• Up to date Tax Paid Receipts of the Property
• Copy of the Approved Plan for the Proposed Construction/Extension/Addition
• An Affidavit-cum-Undertaking that Applicant shall not violate the Sanctioned Plan, Construction shall be strictly as per the Sanctioned Plan
• Completion Certificate (within 3 months of completion of construction)

For Purchase of Site and Construction of House Thereon:

• Title Deeds of the Property and Link Documents for the last 13 years
• Encumbrance Certificate for the past 13 years
• Khata Certificate or Khata Extract
• Up to date Tax Paid Receipts of the Property
• Copy of Lease Deed (wherever applicable)
• Copy of Occupancy Certificate by Local Authority (wherever applicable)

Canara Bank Housing Loan interest rate

Canara Bank Housing Loan is a loan scheme that offers attractive interest rates for buying, constructing, or renovating your dream home. The interest rate varies depending on the loan amount, the type and age of the property, and the category of the borrower. Here are some of the interest rates you need to know:

• The interest rate starts from 8.85% p.a. for general borrowers and 8.75% p.a. for women borrowers.
• The interest rate is lower for new houses or flats (up to 10 years old) than for old houses or flats (more than 10 years old).
• The interest rate is fixed for the first three years of the loan tenure and then becomes floating.
• The interest rate is subject to change as per the bank’s discretion and market conditions.

What is the minimum credit score required for Canara Bank Housing Loan?

The minimum credit score required for Canara Bank Housing Loan is 650. This means that you need to have a good or excellent credit history and repayment track record to be eligible for the loan. However, the credit score is not the only factor that determines your loan approval. The bank also considers your income, property value, loan amount, loan tenure, and other factors before sanctioning the loan.

How to apply online for Canara Bank Housing Loan?

To apply online for Canara Bank Housing Loan, you can follow these steps:

• Visit the official website of Canara Bank and click on the ‘Corporate Banking’ tab.
• Select the ‘Loans & Advances’ tab and click on the ‘Apply Online’ button.
• Fill in the loan application form with your personal details, property details, income details, and contact details.
• Upload the required documents such as KYC, income proof, and property documents.
• Submit the application and note down the reference number for future reference.
• You will receive an SMS or email confirmation from the bank about your application status.

How to apply offline for Canara Bank Housing Loan?

To apply offline for Canara Bank Housing Loan, you can follow these steps34:

• Visit the nearest branch of Canara Bank and meet a loan officer.
• Obtain the loan application form and fill it with your personal details, property details, income details, and contact details.
• Attach the required documents such as KYC, income proof, and property documents.
• Submit the application and collect the acknowledgement receipt from the bank.
• You will receive a call or SMS from the bank about your application status.

How to track the status of Canara Bank Housing Loan application?

To track the status of Canara Bank Housing Loan application, you can use any of these methods5678:

• Online: You can visit the official website of Canara Bank and click on the ‘Corporate Banking’ tab. Select the ‘Loans & Advances’ tab and click on the ‘Loan Application Status Tracking’ button. Enter your reference number and captcha code and click on ‘Submit’. You will see your loan application status on the screen.

• Offline: You can visit the branch where you applied for the loan and enquire about your loan application status. You will need to provide your reference number and identity proof to the loan officer.

• Phone: You can call the toll-free number 1800 1030 or the non-toll-free number +91-80-22064232 of Canara Bank and speak to a customer care executive. You will need to provide your reference number and identity proof to verify your loan application status.

• Email: You can send an email to [email protected] with your reference number and identity proof. You will receive a reply from the bank with your loan application status.

Conclusion

Canara Bank Housing Loan offers a reliable and accessible pathway to homeownership. With flexible terms, competitive interest rates, and a commitment to customer satisfaction, Canara Bank empowers individuals and families to turn their dreams of owning a home into a reality. Whether you’re a first-time buyer or looking to upgrade, Canara Bank’s Housing Loan provides the support you need to make your homebuying journey a success.

Frequently Asked Questions (FAQs)

1. What is Canara Bank Housing Loan?

• Canara Bank Housing Loan is a financial product offered by Canara Bank that helps individuals purchase or construct residential properties.

2. Who is eligible for a Canara Bank Housing Loan?

• Eligibility criteria vary, but typically include age, income, and creditworthiness. Salaried and self-employed individuals can apply.

3. What types of properties can I purchase with a Canara Bank Housing Loan?

• Canara Bank Housing Loan can be used to buy or construct residential properties such as apartments, houses, and villas.

4. What is the maximum loan amount I can get?

• The maximum loan amount depends on various factors, including your income, credit score, and the property’s value. Canara Bank typically offers loans up to 90% of the property’s value.

5. What is the interest rate for Canara Bank Housing Loan?

• Interest rates may vary over time. It’s recommended to check with Canara Bank for the current interest rates.

6. What is the loan tenure available?

• Canara Bank offers various loan tenure options, usually ranging from 1 to 30 years, allowing borrowers to choose a repayment plan that suits their financial situation.

7. Are there any processing fees or charges associated with the loan?

• Yes, there may be processing fees and other charges associated with Canara Bank Housing Loan. It’s advisable to inquire about these fees during the application process.

8. Can I make part-prepayments or foreclose the loan before the tenure ends?

• Yes, Canara Bank typically allows borrowers to make part-prepayments or foreclose the loan before the tenure ends. However, certain terms and conditions may apply.

9. Is it possible to transfer my existing home loan to Canara Bank?

• Yes, Canara Bank often offers loan balance transfer facilities, allowing you to transfer your existing home loan from another lender to Canara Bank for potentially better terms and rates.

10. What documents are required to apply for a Canara Bank Housing Loan?

• Commonly required documents include proof of identity, address, income, property documents, and bank statements. The exact list may vary based on your specific circumstances.

11. How long does it take to get approval for a Canara Bank Housing Loan?

• The approval process may vary, but it typically takes a few weeks after you submit a complete application with all necessary documents.

12. Is there any insurance associated with Canara Bank Housing Loan?

• Canara Bank may offer insurance options like home loan insurance to protect your loan and property in case of unforeseen events. These are optional but advisable.

Please note that the answers provided are general in nature, and specific terms and conditions may apply to Canara Bank Housing Loan products. It’s essential to contact Canara Bank directly or visit their official website for the most accurate and up-to-date information regarding their housing loan offerings.