Canara Bank Home Loan Interest Rate

Last Updated 14th Aug 2019

Canara Bank Home Loan Rate Aug 2019

7th August 2019 – RBI cuts repo rate by 35 bps to 5.40%

Canara Bank's home loan interest rate starts from 8.75%, which is one of the best home loan rates in India. The rates vary by loan amount, occupation, income and type of loan availed. Check Best Offers

Loan Amount	Canara Bank Home Loan Floating Interest Rate	Rate for Female Borrower	Rate
Upto ₹ 25 Lakh	8.80%	8.75%	N/A
₹ 25 Lakh - ₹ 75 Lakh	8.90%	8.85%	N/A
₹ 75 Lakh - ₹ 1 Cr	8.95%	8.90%	N/A
Above ₹ 1 Cr	8.95%	8.90%	N/A

Canara Bank Home Loan

Canara Bank offers housing loan to people who want money to purchase a house, home renovation and home extension etc. The house itself acts as a security to the loan.

Compare Home Loan Rates of All Banks in India

Canara Bank Home Loan Details

Interest Rate	8.75% onwards Compare with Other Banks
Processing Fee	Upto 0.50% Minimum ₹ 1,500 Maximum ₹ 10,000
Max Tenure	30 years
Lowest EMI	₹ 787 per lakh
Prepayment Charges	Allowed with Nil charges for floating rate loans Check Prepayment Rules
Age	Min 21 and Max 55 years for Salaried Min 21 and Max 55 years for Self Employed

Home Loan Interest Rates Canara Bank

Canara Bank home loan interest rates are in the range of 8.75% to 8.95%, with special discounted rates for specific category of borrowers such as ladies borrowers for whom the bank offers the lowest interest rate of 8.75%.

Products	Interest Rates
Canara Bank Home Loan Floating	8.75% - 8.95%

Latest Canara Bank home loan rate starts from 8.75% , as applicable based on the 1 Year MCLR, last announced on 07th Aug 19. Any change in Canara Bank benchmark 1 Year MCLR rate will translate into a similar change in the bank’s home loan rate. For instance, if Canara Bank slashes 1 Year MCLR rate by 0.15%, its current home loan rate will be cut from 8.75% to 8.6%

Canara Bank housing loan interest depends upon

Loan amount: Housing loan rate in Canara Bank depends upon the loan amount you apply for. Higher the loan amount, lesser will be the rate
Your Salary: Income helps you in identifying your rate of interest. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate
Type of loan opted for: Canara Bank also offers differential rates for women borrowers and also under their fixed and floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers.
Existing bank customers: Canara Bank offers one of the lowest home loan rates to its existing bank account customers in view of their past relationship with the bank.

Canara Bank Home Loan Processing Fee and Other Charges

In addition to interest rates, home loan from Canara Bank also carry some other charges which include:

Processing Fee - Canara Bank applies 0.50% processing charges to account for its expenses incurred for conducting a credit appraisal and completing the lending process.
Technical and Legal Charges - Canara Bank also charges technical and legal charges which are explained to the customer during the loan process. Once you go through the loan application process, you will need to pay these charges based on Canara Bank rules.
Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to Canara Bank. As per RBI rules, banks are not allowed to charge prepayment penalty on floating rate home loans. Hence, you can prepay your home loan with Canara Bank at Nil charges.

Canara Bank Housing Loan: Apply

If you want to get a housing loan from Canara Bank, the process to get the loan is fairly easy. All you need to do is to apply for a home loan at MyLoanCare. We are a channel partner of all top banks in India including HDFC, SBI, Axis Bank, Citibank. Your loan application will be processed online and Canara Bank’s representatives will get in touch to begin the process of getting a home loan. You will also be assisted by MyLoanCare’s personal housing loan advisor to ensure that all the lending process is smooth, quick and you get the best house loan from Canara Bank.

You can also do a comparison of HDFC Bank Canara Bank’s Home Loan Interest rates and other charges using MyLoanCare comparison tool. Once you apply online, you can check the real time status of your home loan application in your customer account section of MyLoanCare.

Canara Bank Home Loan Documents

For Salaried employees

Filled up loan application form
2 Passport Size Photo
ITR of last 2 years
Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

For Self-Employed

Filled up loan application form
2 Passport Size Photo
Identity Proof - Passport/ Driving License/ Voter ID/ PAN
Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Illustration on Home Loan Canara Bank

Maximum Annual Percentage Rate (APR)

8.75% to 8.95%

Representative example of the total cost of the loan, including all applicable fees

Here is an illustration of the total cost of the loan:

Total amount borrowed: Rs. 1 Lakh
Time period: 5 years to 30 years
Canara Bank Home Loan Interest Rate: 8.75% to 8.95%
Processing Fee payable to Canara Bank: Upto Rs. 10,000. Current offer for processing fee is Upto 0.50%
Minimum Rs. 1,500 Maximum Rs. 10,000
Fee payable to MyLoanCare: NIL
Total Monthly Cost – From Rs. 787 for a 30 years Rs. 1 Lakh loan at 8.75% (lowest rate, longest time period) to Rs. 2,073 for a 5 years Rs. 1 Lakh loan at 8.95% (highest rate, shortest time period). This is inclusive of principal repayment.
Annual Percentage Rate (APR) of charge including all applicable fees: 8.75% to 8.95%
Total cost payable over loan tenure: Rs. 34,405 for 5 years loan to Rs. 1.93 Lakh for 30 years loan

Canara Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Canara Bank.

Frequently Asked Questions

What is Canara Bank home loan procedure?

You can apply for a Canara Bank home loan by contacting the bank directly or by applying through online marketplaces like myloancare.in. Availing a loan through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results. You can also check your Canara Bank home loan status by logging in your customer account with MyLoanCare.

Why should I opt for balance transfer to Canara Bank?

Canara Bank offers competitive home loan rates with best EMI of ₹ 787 per lakh availed at low interest rate of 8.75% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 787 per lakh, you should consider option for a loan transfer to Canara Bank from your existing bank.

What is the maximum loan tenure I can opt under Canara Bank house loan?

Canara Bank offers you a longer tenure of 30 years to repay your loan with a benefit of paying less EMI per month.

Do I get tax benefit on home loan from Canara Bank?

As per Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on principal amount and interest components of a home loan under the section 24 and section 80C of Income Tax Act.

Can I foreclose my home loan? What are the charges applicable?

Yes, you can foreclose your loan with Nil charges.

Can I transfer my house loan from another bank to Canara Bank?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Availing loan transfer to Canara Bank can allow you to save interest, pay lower EMIs and save money.

Can I club the income of my spouse with mine and apply for joint home loan?

You can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

What is the benchmark applicable for housing loan?

The benchmark applicable for home loan in Canara Bank is 1 Year MCLR.

What is the effect of part prepayments on Canara Bank housing loan EMI ?

Part prepayments help you in reducing the outstanding amount of loan which in turn will reduce the interest amount due. After making part payments, paying the same EMI will increase your involvement towards the principal amount which will help you in repaying the loan faster.

How to increase my eligibility on Canara Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get loan.

How will interest rate on Canara Bank housing loan change in future?

Floating rate on Canara Bank housing loan is linked to its 1 Year MCLR Rate, which is currently at 8.50%. When Bank offers a home loan at 8.75%, it applies a premium of 0.25% to its MCLR Rate to arrive at this home loan rate.
When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new home loans would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new house loan accounts.

COMPARE Home Loan DETAILS OF BANKS

Loan Amount	Cashback
Rs. 1 cr and above	Rs. 5,000
Rs. 75 lakh - less than Rs. 1 cr	Rs. 3,000
Rs. 50 lakh - less than Rs. 75 lakh	Rs. 2,000
Rs. 35 lakh - less than Rs. 50 lakh	Rs. 1,000
Rs. 20 lakh - less than Rs. 35 lakh	Rs. 500
Less than Rs. 20 lakh	Rs. 200