Canara Bank Home Loan – Details, Interest Rate & Application Process
Canara Bank offers home loan products to cater to various customer needs, with interest rates starting from 8.40% per annum and tenures extending up to 30 years. Canara Bank's home loan interest rates vary based on the borrower's profile and the loan amount, with rates for women borrowers starting at 8.50% and other borrowers at 8.55% for amounts up to ₹50 lakh. Borrowers can access loans up to six times their gross annual income, with specific limits for repairs or renovations capped at ₹15 lakh. The bank offers a margin of up to 90% for new properties and 75% for older properties. Canara Bank also provides additional benefits such as no prepayment penalties and life insurance cover for all home loan borrowers, enhancing the appeal of its home loan products
Canara Bank Home Loans
Canara Bank Home Loans are made in a manner which makes people from all walks of society dream of home ownership. The bank has home loan products to buy a new home, a construction of a new home, renovation of an existing home and a plot purchase and a construction. Canara Bank has benefits with its best Interest rates and customer friendly approach for hassle free application and approval process.
- The loan amount offered is based on an effective property valuation and borrower eligibility, with a maximum of ₹3 crore.
- The interest rate starts as low as 8.50% per annum.
- Borrowers can enjoy manageable EMIs with a repayment tenure of up to 30 years.
- This loan can be used for various purposes, including the purchase of a new home, home construction, renovation of an existing property, or the purchase or arrangement of funds to buy a plot.
Canara Bank Home Loan Features
A very affordable and transparent home loan financing option, Canara Bank Home Loans provides a Home Loan scheme for homebuyers. Providing competitive interest rates and flexible repayment terms that provide the financial help needed to realize the dream of homeownership, Canara Bank.
Key Features and Benefits:
- Affordable for the borrower on attractive interest rates at 8.50% p.a.
- The EMIs are to be paid by the borrowers up to 30 years depending on the repaying capacity.
- Up to ₹30 lac if loan up to 90 per cent of the property value is lent.
- 0.50% of the loan amount with a max limit of ₹ 10,000 with low processing fee.
- There are no prepayment or foreclosure charges associated with the floating rate loans.
- Borrowers are entitled to take deduction as per sections 80C and 24(b) of the Income Tax Act for loans.
Canara Bank Home Loan Interest Rates Comparison
| Bank Name | Interest Rate (p.a.) | Processing Fees | Loan Tenure (Max) |
| Canara Bank | 8.50% - 9.00% | 0.50% (Max ₹10,000) | 30 years |
| SBI Home Loan | 8.55% - 9.10% | 0.35% (Min ₹2,000) | 30 years |
| HDFC Home Loan | 8.60% - 9.15% | Up to ₹10,000 | 30 years |
| ICICI Bank | 8.65% - 9.25% | 0.50% (Min ₹3,000) | 30 years |
Canara Bank Home Loan Eligibility Criteria
For widespread access, Canara Bank has clearly defined eligibility criteria as below:
- Age: Loan maturity of 21 years to 75 years.
- Income: Minimum of ₹25,000 per month. For salaried and self employed this income will be different.
- Employment: More than two years of stable employment or business continuity.
- CIBIL Score: At least 750 for smooth approval.
- Property: The property had to be in accordance with bank technical and legal standards.
Eligibility Criteria Summary
| Criteria | Details |
| Age | Minimum: 21 yearsMaximum: 75 years |
| Employment Type | Salaried individuals, Self-Employed (Professionals and Non-Professionals) |
| Minimum Income | Salaried: ₹25,000 per monthSelf-Employed: ₹25,000 per annum |
| Employment Duration | Salaried: Minimum 2 years continuous service, with at least 6 months in the current job |
| Self-Employed: Minimum 3 years in the profession or business | |
| Credit Score | Good credit score preferred (750 and above) |
| Debt-to-Income Ratio | Net take-home pay should be at least 25% after deducting EMI of the proposed home loan |
| Loan Amount | Up to 6 times of gross annual income for salaried applicantsAverage gross annual income for self-employed |
| Property Specifications | Newer properties are preferred; LTV ratios apply based on property value |
Application Process for Canara Bank Home Loan
Users need to fill up the application form at the website of Canara Bank or any nearby head office.
- All the documents such as KYC, income proof, property papers and bank statements need to be attached.
- The bank checks eligibility, credit score, evaluation of the property.
- Once sanctioned, the account may be credited with the loan after approval.
Loan Amount vs. Tenure Analysis
| Loan Amount (₹) | Interest Rate (p.a.) | EMI (10 Years) | EMI (20 Years) | EMI (30 Years) |
| 25,00,000 | 8.50% | ₹30,991 | ₹21,646 | ₹19,267 |
| 50,00,000 | 8.50% | ₹61,982 | ₹43,293 | ₹38,533 |
| 75,00,000 | 8.50% | ₹92,974 | ₹64,939 | ₹57,800 |
| 1,00,00,000 | 8.50% | ₹1,23,966 | ₹86,586 | ₹77,067 |
Canara Bank offers a home loan solution that caters to a wide range of customer needs, making it an attractive option for prospective homeowners. With no upper limit on loan amounts and lower interest rates, the bank ensures that borrowers can finance their dream homes without excessive financial strain. The reducing balance interest rate feature further enhances affordability by lowering the interest burden over time. Additionally, Canara Bank does not impose a prepayment penalty, allowing customers to pay off their loans early without incurring extra costs.
Frequently Asked Questions
Ques. Do home loans from Canara Bank have pre payment charges?
Ans. No, there are no pre payment charges on floating rate loans.
Ques. Is Canara Bank home loan processed within 7 to 10 working days after providing documents?
Ans. Yes, After submitting documents, processing normally takes 7-10 working days.
Ques. Can I avail of a home loan for property renovation or construction?
Ans. Yes, Canara Bank provides home loans specifically for property renovation and construction, with tailored terms and conditions.
Ques. What is the tenure period for Canara Bank home loans?
Ans. The tenure for Canara Bank home loans can range from 5 years to 30 years, allowing borrowers to choose a repayment period that suits their financial situation.
