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Canara Bank Loan Against Property Eligibility

Canara Bank Loan Against Property Calculator India Apr 2021

Last Updated 26th Feb 2021

Eligibility Criteria Salaried Self Employed
Age of Eligible Borrower 21 - 60 years 21 - 65 years
Maximum Loan Tenure 7 years 7 years
Eligible Monthly Income ₹ 20,000 ₹ 20,000
  • Canara Bank offers Loan Against Property Rates at 9.95% p.a.
  • Canara Bank loan against property is calculated based on your age, income, property value and repayment capacity.
  • Increase your Canara Bank mortgage loan eligibility by adding earning family members, business firms and companies owned by main applicant as co-applicants or by applying for a longer tenure loan
Loan Against Property Eligibility Calculator

Canara Bank Loan Against Property Eligibility Based on Age

  • Age: Canara Bank considers your age as one of the important parameters to calculate your eligibility of a mortgage loan. To be eligible for availing a loan from Canara Bank, one has to be of atleast 21 years of age. The maximum age for loan from Canara Bank can be 60 years for salaried and 65 years for self employed. Canara Bank eligibility calculator takes age as an input to calculate your maximum loan tenure, loan EMI and hence, your loan amount eligibility. The maximum tenure of loan that you may be eligible based on your current age will be as follows:
Your Current Age Max tenure for salaried Max tenure for self employed
25 Years 7 Years 7 Years
30 Years 7 Years 7 Years
40 Years 7 Years 7 Years
50 Years 7 Years 7 Years
60 Years - 5 Years

Canara Bank Mortgage Loan Eligibility Based on Income

  • Net Income: The amount of loan you can avail is a function of your net income. Canara Bank typically applies a multiplier of up to 60 times on monthly net income of the borrower to calculate the mortgage loan eligibility. For example, if your net monthly income is ₹ 70,000 and you take a mortgage loan of ₹ 50 Lakh at 9.95% interest rate offered by bank, the maximum loan amount that you will be eligible for (assuming you have no other EMI’s to pay) would be as follows:
    Age Net Monthly Income (₹)
    50,000 75,000 100,000
    25 years 19.61 Lakh 29.41 Lakh 39.21 Lakh
    30 years 19.61 Lakh 29.41 Lakh 39.21 Lakh
    35 years 19.61 Lakh 29.41 Lakh 39.21 Lakh
    40 years 19.61 Lakh 29.41 Lakh 39.21 Lakh
    50 years 19.61 Lakh 29.41 Lakh 39.21 Lakh

    You may consider repaying any loans with short tenure and high EMI in order to increase your Canara Bank loan against property eligibility.

  • Nature of Employment: Canara Bank will check whether you are salaried or self employed. It also looks at your years of experience to check for job and income stability. Canara Bank requires minimum income history and job stability of more than 5 years for salaried individuals and of 3 years for self employed individuals.

Canara Bank Loan Against Property Eligibility Based on Value of Property

  • Value of Property: Canara Bank does not finance the entire property value. The maximum Loan Against Property Eligibility would depend upon the value of the property. Suppose you intend to take a loan on a property worth ₹ 20 Lakh. The amount of loan you will be eligible for will vary with the nature of property. A residential property worth ₹ 20 Lakh will fetch the highest loan amount of ₹ 10 Lakh.
    Property Type LTV Property Value Maximum Loan Amount
    Commercial Property 50% ₹ 20 Lakh ₹ 10 Lakh
    Residential Property 50% ₹ 20 Lakh ₹ 10 Lakh
  • Co-Applicant: In order to enhance the eligibility of a loan with Canara Bank, one can apply with a co-applicant such as a spouse or parents. This increases the total eligible income for availing a property loan and enhance the amount of eligible loans. As mentioned earlier, every bank has its own set of eligibility criteria. In case of NBFCs, customers can expect higher eligibility.
  • Property Documents: Your property’s legal documents should be satisfactory and be cleared by the legal team of Canara Bank.

Canara Bank Property Loan Eligibility Based on CIBIL Score

CIBIL Score: The credit history of an individual plays an important role in deciding the amount of the loan. Credit history is basically the credit report of an individual based on credit information recorded by CIBIL for all your past and current loan transactions. Based on your credit score, a bank or any other financial institution decides whether an individual is eligible for a loan or not. Regular payment on secured loans can also increase your CIBIL score. Canara Bank requires a minimum credit score of 650 to be eligible for a property loan.

There are few factors which affect your credit score and in turn impact your chances of getting of loan from Canara Bank.

  • Late Payments – If have delayed in repaying your existing or past loans, it negatively affects your CIBIL score and reduces your chances of getting a loan from Canara Bank.
  • High Number of Unsecured Loans – Always keep a balance between secured and unsecured loans. Unsecured loans are riskier and more number of unsecured loans can adversely affect your credit score.
  • Usage of Credit Limit – Credit card bills and use of credit limit shows your credit behaviour. Frequent usage or withdrawals of large amounts up to the credit card limit reflects a potential financial stress, indiscipline on your part and may adversely impact your credit score.
  • Multiple Loan Applications – If you apply for loan in multiple banks at one time, it can affect your score negatively and reduce your CIBIL score. In case of application rejection from Canara Bank, improve your credit worthiness to get a good score before putting in an application in another bank.

Canara Bank Mortgage Loan Eligibility Based on FOIR

Canara Bank calculates FOIR (Fixed Obligation to Income Ratio) to estimate the amount of loan against property you can avail. Canara Bank will calculate the percentage of fixed obligations (Rent and EMIs) to your net monthly income. Your fixed obligations to monthly income ratio should not be more than 65% to get a mortgage loan from Canara Bank. Always calculate your eligibility with Canara Bank mortgage loan calculator to estimate your eligible loan amount before applying for a loan to reduce the chances of getting your loan application rejected.

FAQs

What factors determine the eligibility criteria of property loan from Canara Bank?

The factors that determine the eligibility criteria of Canara Bank property loan are:-

  • Age of the applicant
  • Monthly income
  • Existing liabilities
  • CIBIL Score
  • Value of the property to be mortgaged

What should be the minimum net monthly income of the customer to get Canara Bank mortgage loan?

The minimum income for salaried employee to get loan against property should be ₹ 20,000 per month.

What is the minimum and maximum age required for Canara Bank loan against property?

The minimum age of the applicant should be 21 years and maximum should be 60 years for loan against property from Canara Bank.

What is the tenure of Canara Bank property loan?

Canara Bank offers property loan for a tenure upto 7 years. However, longer the loan tenure, higher will be the eligibility.

How much mortgage loan can be availed by the applicant?

An applicant can avail mortgage loan from Canara Bank up to 50% of the market value of the property.

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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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