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Canara Bank Loan Against Property Interest Rate Aug 2019

Last Updated 14th Aug 2019

Canara Bank Mortgage Loan Interest Rates

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

Canara Bank offers Loan Against Property starting at interest rate of 11.70% which is one of the best mortgage loan rates in India. Current 1 Year MCLR benchmark rate is 8.50%. Check Best Offers

Canara Bank Loan Against Property Features
Processing Fee Upto 1.00%
Max Tenure 7 years
Lowest EMI ₹ 1,749 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 21 and Max 60 years for Salaried
Min 21 and Max 65 years for Self Employed
Apply for Loan Against Property @ 8.70%*Get upto ₹ 5,000* Cashback
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Canara Bank Floating Rate Loan Against Property
Canara Bank Mortgage Loan Interest Rates
Canara Bank Loan Against Property Floating 11.70%
Canara Bank Loan Against Property Floating
Loan Amount Rate
Upto ₹ 25 Lakh 11.70%
₹ 25 Lakh - ₹ 75,00,00011.70%
₹ 75 Lakh - ₹ 3,00,00,00011.70%
Above ₹ 3 Cr 11.70%
Loan against property rate in Canara Bank depends upon
  • Loan amount: Property loan rates in Canara Bank depends upon the loan amount you apply for. You can get minimum loan of ₹ 10 Lakh from Canara Bank.
  • Your Net Monthly Income: 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 different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
  • Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
  • Your profession: Canara Bank may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

Interest Rate and its impact on Canara Bank Loan Against Property Eligibility

Canara Bank has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

Eligibility Criteria Details
Age 21 to 60 years
Minimum Income ₹ 20,000
Loan Amount ₹ 10 Lakh to ₹ 10 Cr
Minimum years of business existence 5 years
Minimum work experience 3 years
Minimum Credit Score 650 and above
Loan to Value Ratio Upto 50%
FOIR (Fixed Obligations to Income Ratio) 0.65
  • Age: Age is one of the important factors to examine your eligibility. Canara Bank offers loan to salaried and self employed at the age of 21 years. Any person taking loan at the age of 25, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
  • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
  • Business Stability: Self employed person should be in business for a minimum of 3 years during which the business should be profitable.Canara Bank will ask for ITRs of 3 years to consider you as eligible for LAP.
  • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Canara Bank grants loan to borrowers with a CIBIL score of 650 and above.
  • Loan Amount: Canara Bank gives you an amount ranging from ₹ 10 Lakh to ₹ 10 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Canara Bank will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
  • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Canara Bank mortgage loan is 0.65.

Canara Bank Loan Eligibility Calculator

Canara Bank Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

Canara Bank Mortgage Loan EMI and Interest Calculator

You can also use online Canara Bank Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

  • EMI calculator of Canara Bank helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
  • Higher the loan amount, higher the EMI. You can compared the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
  • Loan tenure matters equally as higher loan tenure reduces your EMI
  • Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility

What are the benefits of calculating Canara Bank Mortgage loan EMI?

  • EMI calculator helps you to calculate your monthly EMI at different rate of interest
  • Canara Bank Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
  • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
Other Charges

In addition to interest rates, property loan also carry some other charges which include:

  • Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Canara Bank allows prepayment of loan against property with Nil prepayment charges.
  • Processing Fee - Canara Bank charges a processing fee of 1.00% loan amount.
  • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
Canara Bank Loan Against Property Top up, Transfer

Transfer of LAP from another bank to Canara Bank

Canara Bank offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Canara Bank.

You can avail additional top-up loan against property from Canara Bank, subject to your eligibility.

Canara Bank Loan against property documents required

For Self-Employed
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 3 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
For Salaried employee
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 3 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
  • Registered Sale Deed/ Conveyance/ Lease Deed
  • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
  • Latest House Tax Return/ Receipt
  • Approved Building Plan from Municipal Corporation

Frequently Asked Questions

What is Canara Bank's loan against property interest rate?

Canara Bank offers loan against property at rate of 11.70% with the lowest EMI of ₹ 1,749. If you are currently paying higher interest rate than Canara Bank rate, you can opt for balance transfer of loan to Canara Bank.

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

Canara Bank offers you a longer tenure of 7 years to repay your loan with a benefit of paying less EMI per month.

What is the benchmark rate applicable for Mortgage loan?

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

Do I get tax benefit on Loan against property from Canara Bank?

There are no tax benefits available for loan against property.

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

Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

Can I transfer my LAP from another bank to Canara Bank?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Canara Bank offers you to pay lower EMIs and save money.

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

Yes, 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.

How to increase my eligibility on Canara Bank Mortgage 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 LAP change in future?
  • Floating interest rate on Canara Bank property loan is linked to its 1 Year MCLR, which is currently 8.50%. So, when Canara Bank offers a loan against property at 11.70%, it applies a 3.2% premium to its MCLR to arrive at this rate
  • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new loan against property 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 loan account customers.
What is Canara Bank mortgage loan processing fees?

The loan processing fee charged is 1.00% of the total loan amount.

What is Canara Bank property loan procedure?

You can apply for a Canara Bank property loan by contacting the bank directly or by approaching them through online marketplaces like myloancare.in. Approaching the bank 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.

What security do I need to provide?

Canara Bank requires registered mortgage of the property against which the bank will provide you loan.

What are the five things to check before applying for loan against property in Canara Bank ?
  • Property on which you intend to take loan is not a vacant land, has an approved map plan and is in municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
  • Your existing EMIs on all loans and credit cards (from Canara Bank and other banks) are no more than 60 - 70% of your net monthly income
  • You have not defaulted on loans or credit card dues to Canara Bank and other banks and all EMI's have been paid. Note that Canara Bank can see record or status of your EMI defaults to all banks and NBFC’s in India and not just to Canara Bank in your CIBIL report. Estimate your CIBIL score for free by using CIBIL score estimate calculator
  • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
  • If you are self employed in your own business or practice, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available
Are prepayment or foreclosure charges applicable on Canara Bank loan against property?

You can prepay loan against property (LAP) without any penalty or charges in case:

  • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
  • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

For loans from banks and NBFC's, refer to RBI circulars RBI/ 2013-14/ 582/ DBOD. Dir. BC. No. 110 /13.03.00/ 2013-14 dated May 7, 2014 and RBI/ 2014-15/121/ DNBS(PD). CC. No. 399/ 03.10.42/ 2014-15 dated July 14, 2014 for more details.

For loans from Housing Finance Companies, refer to NHB circulars NHB(ND)-DRS-Policy-Circular-63-14-15 dated Aug 14, 2014 and NHB-ND-DRS-Policy-Circular-No-66-2014-15 dated Sep 03, 2014 for more details.

Please contact myloancare at 8448389600 or care@myloancare.in in case you need any assistance or clarification on this subject.

Canara BankLoan Against Property Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Canara Bank 0562-2855003/0562-2525610
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0184-2251033
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0712-2567296/ 0712-2567199
Canara Bank 080-25589520/ 080-25588641
Canara Bank 07936-2443115
Canara Bank 0141-2222744
Canara Bank 0712-2567296/ 0712-2567199
Canara Bank 0755-2575631/ 898-998-9210
Canara Bank 0674-2392612/ 0674-2390807
Canara Bank 0141-2222744
Canara Bank 0172-2605243/ 0172-2602245
Canara Bank 044-24327025/ 044-24346038
Canara Bank 1800-425-0018
Canara Bank 0422-2558410
Canara Bank 0135-2657795
Canara Bank 011-26418058/ 011-26293209
Canara Bank 07936-2443115
Canara Bank 0124-2657502/ 0124-2657528
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0562-2855003/0562-2525610
Canara Bank 0832-2232013
Canara Bank 011-26418058/ 011-26293209
Canara Bank 0124-2657502/ 0124-2657528
Canara Bank 0361-2466817/ 0361-2340364
Canara Bank 0731-2573815/ 0731-2573821
Canara Bank 040-23436915
Canara Bank 0731-2573815/ 0731-2573821
Canara Bank 0731-2573815/ 0731-2573821
Canara Bank 0141-2222744
Canara Bank 0181-2243322/ 0181-2243322
Canara Bank 0141-2222744
Canara Bank 0542-2510032
Canara Bank 0184-2251033
Canara Bank 0712-2567296/ 0712-2567199
Canara Bank 033-22831511/ 033-22806061
Canara Bank 0141-2222744
Canara Bank 1800-425-0018
Canara Bank 0522-2302604/ 0522-2303802
Canara Bank 0181-2243322/ 0181-2243322
Canara Bank 0452- 2330335/ 0452-2335988
Canara Bank 0121-2531113
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0172-2605243/ 0172-2602245
Canara Bank 022-26728366/ 022-26728309
Canara Bank 0135-2657795
Canara Bank 0712-2567296/ 0712-2567199
Canara Bank 0712-2567296/ 0712-2567199
Canara Bank 011-26418058/ 011-26293209
Canara Bank 011-26418058/ 011-26293209
Canara Bank 0184-2251033
Canara Bank 0612-2321047/ 0612-2320559
Canara Bank 1800-425-0018
Canara Bank 020-24478405/ 020-24452828
Canara Bank 07936-2443115
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0651-2331752
Canara Bank 0184-2251033
Canara Bank 0135-2657795
Canara Bank 0427-2330811
Canara Bank 0177-2629639
Canara Bank 0184-2251033
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0431-2415475
Canara Bank 0141-2222744
Canara Bank 079-26579600/ 079-26574852
Canara Bank 0542-2510032
Canara Bank 0866-2970201
Canara Bank 0891-2547920

Canara Bank Loan Against Property News - Aug 2019
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