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Canara Bank Loan Against Property

Canara Bank Mortgage Loan Interest Rates

Last Updated 26th Feb 2021

Canara Bank is one of the leading PSU banks of the country that offers excellent banking products and services to its customers. Canara Bank Loan against property is one such reliable product offered by the bank at lowest interest rates. Canara Bank Loan against property interest rate starts at 9.95%. Check Best Offers

Processing Fee Upto 1.00%
Max Tenure 7 years
Lowest EMI ₹ 1,658 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 @ 7.20%* Get upto ₹ 1,000* Cashback
    Canara Bank Floating Rate Loan Against Property LAP
    Canara Bank Mortgage Loan Interest Rates
    Canara Bank Loan Against Property Floating 9.95%
    Canara Bank Loan Against Property Floating
    Loan AmountRate
    Upto ₹ 25 Lakh 9.95%
    ₹ 25 Lakh - ₹ 75 Lakh9.95%
    ₹ 75 Lakh - ₹ 3 Cr9.95%
    Above ₹ 3 Cr 9.95%

    Canara Bank Loan Against Property Rate

    • 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. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
    • Type of loan opted for: Canara Bank 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 from the age of 21 years. Any person taking loan at the age of 21, 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 compare 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% of the total loan amount.
    • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
    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

    FAQs

    What is Canara Banks loan against property interest rate?

    Canara Bank offers loan against property at rate of 9.95% with the lowest EMI of ₹ 1,658. If you are currently paying higher interest rate than Canara Bank rate, you can opt for balance transfer of loan to Canara Bank.

    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.

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

    There are no tax benefits available for loan against property.

    • Canara Bank offers RBI Repo Rate linked mortgage loan which starts at 9.95%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Canara Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium 5.95% to the Repo Rate to arrive at this rate.
    • When RBI increases rates, the bank may increase its Repo Rate linked property loan rates by the same basis points for all existing and new mortgage loans. When RBI cuts interest rates, the Canara Bank loan against property interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.

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

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

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

    Canara Bank offers maximum tenure of 7 years to repay your loan.

    What is the benchmark rate applicable for Mortgage loan?

    The benchmark rate applicable for property loan in Canara Bank is RLLR

    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.

    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. 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.

    • 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 total 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 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, 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

    Canara Bank Loan Against Property Reviews 2/5  by 1 customers
    MyLoanCare Service
    2/5.0
    Banks Service
    2/5.0
    Milind Shinde, Karnal
    Reviewed on 30th Mar 2015
    2 / 5 stars
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    Canara Bank Loan Against Property News - Apr 2021
    • 2021-02-26 : Canara Bank organized Mega Retail Expo in Mumbai
      Canara bank organized a mega retail expo camp at Gala Auditorium, Patuck Campus in Santacruz (East). The retailers present at the expo displayed salient features of their products which include home, personal, LAP, two-wheeler car and gold loan along with business and mudra loan. A total loan amount of Rs. 224.30 Crores were sanctioned through the expo.
    • 2019-06-27 : Canara Bank to raise Rs. 1,500 crore via bonds
      Public sector lender, Canara Bank is planning to raise Rs. 1,500 crore through bonds, to fund business growth. The bank plans to raise the fund through Basel-III additional compliant tier I bonds. Also, the lender has plans to achieve significant growth across its retail loan segment, including home loans and mortgage loans during FY19-20.
    • 2019-05-23 : Canara Bank launches its presence on two most influential social media platforms Facebook and Instagram
      In a bid to serve large clientele base, Public sector lender, Canara Bank has marked its official presence on the two most influential platforms, Facebook and Instagram. The lender’s YouTube channel has nearly 25,000 subscribers and more than 35,000 followers on Twitter. The bank’s huge social presence will help it to promote its retail loan products and deposits including mortgage loan and home loans among a large base of customers.
    • 2019-04-29 : Canara Bank launches Webassurance with its life insurance partner HSBC Oriental Bank of Commerce
      Public sector lender, Canara Bank and its life insurance partner Canara HSBC Oriental Bank of Commerce Life Insurance has announced the launch of ’Web assurance’. With this launch, now the life insurance products of HSBC Oriental Bank of Commerce will be made available to Canara Bank’s customers. Also, the lender is aiming for introducing new products across its retail loans segment including home loans and mortgage loans.
    • 2019-04-08 : NTPC signs Rs. 2,000 crore term loan pact with Canara Bank
      Earlier this week, the state-run power giant, NTPC has inked a term-loan agreement with Canara Bank to raise Rs. 2,000 crore. The loan has a door to door tenure of 15 years and it would be used to part finance the capital expenditure of the NTPC. The lender also has further plans to achieve a significant growth across its retail loans including home loans, loan against property and gold loans.
    *Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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