Owning a beautiful home is a dream of many. And, to fulfill this dream, many individuals take the help of a home loan. Yes, it is one of the smartest ways to get closer to your dream home wish, and it allows you to repay the loan in easy monthly installments. And, how can Canara Bank Home Loan be missed if we are talking about this credit facility?

In this article, we will delve into the latest Canara Bank Home loan interest rates. Read the article to know more about it. 

Canara Bank Home loan Interest Rate January 2025

This table shows the affordable home loan interest rates of Canara Bank -

Benefits of Canara Bank Home Loan

Here are some of the benefits of Canara Bank Home Loan - 

• No Upper Limit on Housing Loan Quantum: Canara Bank offers high-value home loans with no maximum cap, ensuring you can finance your dream home without financial constraints, subject to income eligibility and repayment capacity.
• Lower Rate of Interest: Enjoy competitive interest rates on Canara Bank home loans, making homeownership more affordable with attractive EMI options.
• Reducing Balance Interest Rate: Benefit from a reduced balance interest rate, where interest is calculated only on the outstanding principal, resulting in lower overall interest payments over the loan tenure.
• No Prepayment Penalty: Make prepayments or foreclose your home loan without any additional charges, helping you save on interest costs and repay the loan faster.
• Avail Home Loan for Repairs/Renovation of House/Flat: Canara Bank provides home loans not only for purchasing a new property but also for repairs, renovation, and extensions, ensuring your home remains in top condition.
• Financing to Acquire 2nd House/Flat: Fulfill your aspirations of owning a second property with Canara Bank’s financing options, whether for investment or personal use.
• Minimal Processing Charges: Benefit from low processing fees, reducing the upfront costs associated with availing a home loan.
• Complimentary Credit Card: Enjoy added financial flexibility with a complimentary Canara Bank credit card, offering rewards, cashback, and other benefits to complement your home loan journey.

Canara Bank Home Loan Features

These are some of the features of Canara Bank Home Loan -

• Purchase of a Ready-Built House/Flat: Canara Bank offers financing options for purchasing a fully constructed house or flat, enabling you to move in immediately without the hassle of construction delays. 
• Construction of House/Flat: Build your dream home with Canara Bank’s home loan, covering the entire construction cost with easy disbursement options linked to the progress of construction, ensuring financial ease throughout the process.
• Purchase of a Site and Construction of a House Thereon: Avail a comprehensive loan package that includes financing for both the purchase of a plot and subsequent construction of your house. 
• Loan for Repairs/Renovations: Canara Bank provides home loans of up to Rs.15.00 lakh for repairs and renovations of an existing property, helping you maintain and upgrade your home. 
• Takeover of Home Loan Liability: Transfer your existing home loan from any Public Sector Banks, Private Sector Banks, Co-operative Banks, Regional Rural Banks, NBFCs, or Housing Finance Companies (HFCs) to Canara Bank at lower interest rates and enjoy benefits such as reduced EMI burden, better repayment terms, and minimal processing fees.
• Top-Up Loan Facility: Eligible home loan borrowers can avail of additional funds for personal or home improvement needs at attractive interest rates, ensuring financial convenience without the need for a separate loan.
• Flexible Repayment Tenure: Canara Bank offers home loan tenures of up to 30 years, providing flexibility to choose EMIs that suit your financial planning and lifestyle.
• Tax Benefits: Enjoy tax deductions under Section 80C and Section 24 of the Income Tax Act on both principal repayment and interest payments, making your home loan more tax-efficient.
• Doorstep Service: Avail hassle-free loan processing with doorstep document collection and personalized assistance from Canara Bank representatives, ensuring a smooth loan application experience.
• Online Loan Tracking: Track the status of your home loan application and repayment schedule online, ensuring complete transparency and convenience at your fingertips.

Eligibility of Canara Bank Home Loan

Here are the eligibility criteria for Canara Bank Home Loan -

Eligible Borrowers:

• Resident Type: Canara Bank home loans are available to Resident Indians, Non-Resident Indians (NRIs) with an Indian passport, Persons of Indian Origin (PIOs) with a foreign passport, and Overseas Citizens of India (OCI).
• Salaried Individuals: Applicants must have at least 2 years of total continuous service, with a minimum of 6 months completed in the current organization.
• Self-Employed Individuals: Business owners, professionals such as doctors, chartered accountants, and architects are eligible, subject to providing documentary proof, including 3 years of Income Tax Returns (ITR) or Income Tax Assessment Orders (ITAO).

Age Criteria:

• 60 years at the time of availing the loan and the loan must be repaid before reaching 75 years of age.

Home Loan Takeover:

• Canara Bank allows the transfer of existing home loans from Public Sector Banks, Private Banks, Co-operative Banks, Regional Rural Banks, NBFCs, and Housing Finance Companies (HFCs), regardless of their credit rating by External Credit Assessment Institutions (ECAI), subject to terms and conditions.

Documentation For Canara Bank Home Loan

There are required documents for the Canara Bank Home Loan - 

• Loan Application: Duly filled application form with 2 passport-size photos of the applicant/co-applicant/guarantor.
• KYC Documents:
  • Proof of Identity: PAN Card, Driver’s License, Voter ID, Passport, Aadhaar, etc.
  • Proof of Residence: Aadhaar Card, Passport, Driver’s License, Voter ID, Utility Bills, or Business-related GST documents.
  • Age Proof: PAN Card or other valid documents.

For Salaried Individuals:

• Last 6 months' salary account bank statement.
• Proof of 3 years of confirmed service (Form 16, ITR, Employee ID, Appointment/Confirmation Letter).

For Self-Employed/Business Owners:

• Balance Sheet and Profit & Loss statements for the last 3 years.
• ITR/ITAO for the last 3 years.
• Land records (if agricultural income is included).
• Bank statements.
• Business proof and a brief note on business activities.

For NRI Applicants:

• Passport copy (first 4 pages and visa page) or IC/PIO card.
• Valid work permit.
• Attested salary certificate by Indian Embassy/Consulate/Employer.
• Overseas bank account statement showing salary and savings.
• Notarized Power of Attorney, if authorizing a third party for loan formalities.

Calculate Your Monthly EMI Of Canara Bank Home Loan

To estimate your EMIs for Canara Bank Home Loan at various interest rates, you can use the online Wishfin Canara Bank Home Loan EMI Calculator, which provides quick and accurate results.

Simply enter the following details:

• Loan Amount
• Tenure
• Interest Rate

For example, the table below illustrates the monthly EMIs for a Rs.50,00,000 home loan with interest rates ranging from 8.40 % to 11.75 % p.a. for a tenure of up to 30 years. You can customize the loan amount and other parameters as per your requirements. 

How to Apply For Canara Bank Home Loan? 

Here are the steps to apply for a Canara Bank home loan - 

• Visit the Canara Bank website. 

• By reaching here, you can see the “CANARA INSTANT LOAN REQUEST” form. 

• Fill in all the necessary information and apply for the home loan. 

Conclusion 

With the affordable Canara Bank Home loan interest rates the borrowers can benefit from flexible repayment options, minimal processing fees, and no prepayment penalties. The bank provides loans at attractive interest rates with a reducing balance method, ensuring lower overall interest costs, making Canara Bank home loans an affordable choice for purchasing, constructing, or renovating a home.

FREQUENTLY ASKED QUESTIONS

1. What is the home loan interest rate in Canara Bank?

The Canara Bank home loan interest rate is 8.40 % to 11.75 % p.a.

2. What is the processing fee for a Home Loan under Canara Bank?

Canara Bank charges a processing fee of 0.50% on home loans, with a minimum of ₹1,500 and a maximum of ₹10,000.

3. What are the minimum job criteria required to be eligible for a Canara Bank Home Loan?

To be eligible for a Canara Bank Home Loan, salaried employees must have a minimum of 3 years of work experience in their current designation with confirmed employment. For business owners, professionals, and self-employed individuals, a minimum of 3 years of continuous business operation is required.

4. What security needs to be provided by an applicant to be eligible for the Canara Bank Home Loans?

To be eligible for a Canara Bank Home Loan, the applicant must provide the house or flat being financed as collateral by mortgaging it.

5. Can I choose between fixed and floating rates of interest for the Canara Bank home loan? 

Canara Bank offers home loans at floating rates only.