Housing Loan – How can I get Top-Up Housing Loan from Canara Bank – Real Home Loan Experience
Canara Bank is the third largest nationalized bank in India. It is under the ownership of the Ministry of Finance, government of India. It is headquartered in Bangalore. Established in 1906 at Mangalore by Ammembal Subba Rao Pai, the bank also has offices in London, Hong Kong, Dubai and New York.
Canara Bank home loan interest rate starts from 6.65% p.a. for women and 7.00% p.a. for others, with loan tenures of up to 30 years. The eligible home loan amount is 4 times your gross annual income and up to 5 years’ gross income permitted in select cases. The bank charges a nominal processing fee of 0.50% of the loan amount and zero prepayment charges for floating rate home loans. Also, you can avail up to 90% of the property value if it’s a new house/flat. The bank also offers loans of up to Rs.15 lakh for repairs or renovations. With certain preconditions, persons above the age of 60 years can avail the Canara Bank housing loan.
| Loan Amount | Minimum: NA, Maximum: 6x Gross Annual Salary |
| Processing Fees | Up to 0.50% (Max. Rs.10,000) |
| Penal Interest Rate | Not available |
| Prepayment/Foreclosure Charges | Nil |
| Max Tenure | 30 Years |
| Rate Packages Available | Floating |
Canara Bank Home Loan Interest Rates 2022
Canara Bank housing finance schemes are linked to its Repo Linked Lending Rate (RLLR). The table below shows the interest rates you need to know:
| Canara Home Loan Schemes | Interest Rates |
|---|---|
| Canara Housing Loan | 6.65% to 8.90% p.a. |
| Canara Home Loan Plus | 7.45% to 9.50% p.a. |
| Canara Site Loan | 7.95% to 9.00% p.a. |
| Canara Home Improvement Loan | 9.40% to 11.45% p.a. |
| Canara Mortgage Loan | 9.95% to 12.00% p.a. |
| Canara Home Loan Secure | 7.00% p.a. |
Canara Bank Home Loan EMI Calculator
| Loan Amount | 10 Year EMI | 20 Year EMI | 30 Year EMI |
| Rs.10 lakh | Rs.11,431 | Rs.7,544 | Rs.6,420 |
| Rs.20 lakh | Rs.22,863 | Rs.15,089 | Rs.12,839 |
| Rs.30 lakh | Rs.34,294 | Rs.22,633 | Rs.19,259 |
| Rs.40 lakh | Rs.45,725 | Rs.30,177 | Rs.25,679 |
| Rs.50 lakh | Rs.57,156 | Rs.37,722 | Rs.32,098 |
Canara bank home loan EMI per Rs lakh is Rs. 659, which is the lowest EMI offered by the bank. The housing loan EMI amount is calculated based on loan amount, loan tenure and lowest interest rate as 6.65%.
Canara Bank Home Loan Schemes
Canara Bank has a range of home loans to meet your requirements. These are: Canara Housing Loan, Canara Site Loan, Canara Home Loan Plus, and Home Improvement Loan.
- Interest rate: 6.65% to 8.90% p.a.
- Processing fee: 0.50% of the amount (min. Rs.1,500 and max. Rs.10,000)
- For purchase/construction of house, purchase of plot, and renovation/expansion
- Available for individuals with stable employment/business and income for at least 3 years
- Also available for persons aged 60 or more who fulfil certain conditions
- Canara Site Loan
- Interest rate: 7.95% to 9% p.a.
- Processing fee: 0.50% (min. Rs.1,500 and max. Rs.10,000)
- Specifically to buy sites sold by the State/Central governments, Town Planning departments, or any authorized govt. organization
- Additional housing finance can be taken for construction of house on the site
- Repayment tenure of up to 10 years
- Canara Home Loan Plus
- Interest rate: 7.45% to 9.50% p.a.
- Processing fee: NA
- Additional amount on an existing housing loan from the bank
- Only available to borrowers with good repayment history for at least 1 year
- Available as term loan of up to 10 years as well as overdraft of up to 3 years
- Canara Bank Home Improvement Loan
- Interest rate: 9.40% to 11.45% p.a.
- Processing fee: 0.50% (min. Rs.1,500 and max. Rs.10,000)
- Curated for purchase of household appliances and furnishing the house
- Also available for NRIs
- Maximum borrowing of Rs.2 lakh on top of existing home finance from the bank
- Repayment tenure of up to 5 years
Canara Bank Home Loan Eligibility Criteria
| Eligibility criteria | Requirements |
|---|---|
| Minimum age of the applicant | 21 years |
| Maximum age of the applicant | 70 years |
| Residency status | Residents of India/Non-residents of India (Depending on the scheme chosen) |
| Type of employment | Salaried/Self-employed/Businessmen/Professionals |
Documents Required for Canara Bank Home Loan
Generally, when you apply for housing finance, you will be required to submit the below documents:
- Identity proof (Any one)
- Valid passport
- PAN Card
- Driving license
- Voter’s ID
- Aadhaar Card
- Address proof (Any one)
- Aadhaar Card
- PAN Card
- Copy of utility bills
- Voter’s ID
- Driving license
- Valid passport
- Income proof (Any one)
- Salaried individuals
- Salary/Employment Certificate
- Recent salary slips
- Latest Form No.16
- Self-employed individuals
- ITAO/IT Returns of the last 3 assessment years
- Letter about nature of business, type of organization, year of establishment, etc.
- Last 3 years’ Balance Sheet and P&L Account
- Salaried individuals
- Other documents
- 2 passport-sizes photos of the applicant/guarantor
- Filled application form
- Sale Deed
- Agreement for Sale
- Approved plan for the proposed construction/extension/addition (Duplicate copy)
- Detailed cost estimate/valuation report designed by Bank’s Architect/Panel Chartered Engineer
- Allotment letter of Co-operative Housing Society/Apartment Owners’ Association/Housing Board/NOC from the Society/Association/Builders/Housing Board
- Legal Scrutiny Report
- NIL Encumbrance Certificate (EC) for the past 13 years
- Property Tax paid receipt
- Khata Certificate, Khata Extract
- Permission for mortgage, wherever necessary
- Cost estimates and Proforma Invoices
- Lease Deed copy, if applicable
- Valuation Report of the property from Panel Valuer of the bank
- Documents for NRIs
- Identity proof: Copy of the first 4 pages of passport and the page with visa stamp, OR IC/PIO card
- Work permit
- Short profile of the applicant and employer
- Employment contract copy
- Salary Certificate copy attested by Indian Embassy/Consulate/Employer.
- Copy of identity card from current employer
- Proof of income for self-employed businessmen and professionals
- Information about past employment
- Last 6 month’s bank account passbook or statement
- Passbook or account statement of overseas bank with savings and salary details
- Residence proof: Driving license/utility bills
- Continuous Discharge Certificate (CDC) copy – for merchant navy employees
- Original NOC under the Provisions of ULC Act
The bank may ask for some other documents based on the purpose for which the money is being borrowed.
Canara Bank Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana (PMAY), introduced in 2015 by the government, is aimed at providing affordable housing schemes to the economically-challenged section of the country. Canara Bank offers housing finance under PMAY to eligible applicants. You can get an interest rate subsidy for loans up to Rs.18 lakh.
Canara Bank Home Loan FAQs
- Can I apply for a housing loan from Canara Bank online?The bank doesn’t allow direct online application as of now.
- Does the bank charge an additional interest on loan opted for purchase of a second residential property?No, you will not be charged any additional interest of case of money borrowed for a second house.
- How do I transfer my existing home loan to Canara Bank?You can transfer your existing housing loan to Canara Bank by applying for the balance transfer option. Before applying, get in touch with the executives to know the interest rate and other terms and conditions.
- How do I contact the customer care section of Canara Bank to resolve my home loan queries?The executives of Canara Bank customer care can be reached at the toll-free number 1800-425-0018. The number can be accessed from any part of India.
