Canara Bank Home Loan Interest Rate at 8.40% to 11.75%

ParticularsDetails
Interest Rate8.40% to 11.75%
Processing Fee0.50% of the loan amount (Min. Rs. 1,500 & Max. Rs. 10,000)
Loan AmountCustomised based on income and repayment capability
Loan TenureUp to 30 Years or upto the age of 70 years, whichever is earlier
Margin10% to 25% of the loan amount
Pre-closure ChargesNil: for floating rate
Part-Payment ChargesNil: for floating rate
SecurityEquitable | Registered Mortgage of the Property in question

Calculate Canara Bank Home Loan EMI Calculate EMI Now

About Canara Bank Home Loan

ParticularsDescription
TypePublic Sector Bank
IndustryBanking & Financial Services
Founded in1906
HeadquarterBangalore, Karnataka, India
OwnerGovernment of India
Websitehttps://www.canarabank.com/
ProductsRetail Banking, Corporate Banking, Finance, Credit Cards, Insurance, Asset Management, Wealth Management, Loans & Private Equity

Canara Bank is one of the largest lenders in India. It has a brand image with rich 122 years of performance having PAN India presence with 6179 branches and 9743 ATMs, catering to all segments of an ever growing clientele accounts base of 8.18 crore. It offers a range of Home Loan Schemes to cater to different categories of customers to fulfil their dream of owning a home.

Canara Bank provides home loan for different needs and purposes such as for purchase, construction, and extension of dwelling unit, repairs/ renovation of home, for purchase of house which is under construction, for purchase of plot, etc. Canara Bank offers customised Home Loan solutions, best-in-class services and simplified loan process.


Why Canara Bank Home Loan?

  1. Canara Bank provides a range of Home Loan Schemes designed for different needs of customers
  2. It has PAN India presence with 6179 branches and 9743 ATMs, catering to all segments of an ever growing clientele accounts base of 8.18 crore
  3. Interest Rate is very low
  4. No Pre-Payment Charges
  5. Minimal Documentation
  6. It provides Flexible Repayment Options to the borrowers
  7. Easy and fast approval & disbursal of home loans
  8. Has dedicated team of well-experienced employees
  9. 24/7 helpline of Canara Bank offers timely assistance to the customers
  10. Moreover, Canara Bank is one of the biggest PSU banks in India hence strong trust factor of people is involved

Purpose of Canara Bank Home Loan

  1. Purchase of a ready built house | flat.
  2. Construction of house | flat.
  3. Purchase of a site and construction of a house thereon. However, loan for the purchase of only site shall not be considered.
  4. For undertaking repairs, renovation, upgradation, creation of additional amenities with a ceiling of Rs. 15.00 Lacs in case of repairs & renovations.
  5. For acquiring second house|flat where the borrower is already having a House|flat with or without loan.
  6. For taking over of the HL liability from all Public Sector Banks|Private Sector Banks, NBFCs rated externally as A and above after ensuring that assessment by the NBFCs is acceptable and confirms to Banks policy guidelines.

Margin or Loan to Value Ratio (LTV) Ratio: For New Home Loan

Loan AmountMarginLTV Ratio
Up to Rs 30 lakhs10%90%
Above Rs 30 lakhs & upto Rs. 75 lakhs20%80%
Above Rs. 75 lakhs25%75%

Margin

Loan AmountUpto 10 years oldOver 10 years old
Up to Rs 30 lakhs20%25%
Above Rs 30 lakhs & upto Rs. 75 lakhs20%25%
Above Rs. 75 lakhs25%25%

Eligibility Criteria of Canara Bank Home Loan

BasisSalaried CustomersNon Salaried Customers
AgeMinimum 18 years & Maximum 70 YearsMinimum 18 years & Maximum 70 Years
IncomeAnnual income must be atleast Rs.1.2 lakhsAnnual income must be atleast Rs 2 lakhs
Job/ Business Experience1 Year2 Years
Age of Co-applicantMinimum 18 yearsMinimum 18 years

Documents Required for Canara Bank Home Loan

BasisSalaried CustomersNon Salaried Customers
ApplicationApplication form with 3 photographsApplication form with 3 photographs
Processing FeeProcessing fee chequeProcessing fee cheque
Identity ProofPassport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proofPassport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proof
Address ProofRecent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar CardRecent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card
Financial Documents
  • Salary Slip or Salary Certificate of last 3 months
  • Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.
  • Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
  • If any previous loan from other Banks /Lenders, then Loan A/C statement for last 1 year
  • Last 3 years Income Tax Returns with computation of Income
  • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
  • Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
  • Business License Details(or equivalent)
  • Board Resolution in case of a company
  • Education qualification certificate and proof of business existence
  • Business address proof
  • Photo Identity Proof, Residence Address Proof, Signature Verification is required to be provided for all the main partners/ directors.
  • If any previous loan from other Banks /Lenders, then Loan A/C statement for last 1 year
  • Certificate of qualification (for C.A./ Doctor and other professionals)

Documents Required for Guarantor

  • 2 passport size colour photographs
  • Identity Proof (Voter ID Card/ Passport/ Driving License/ PAN Card)
  • Address Proof (Telephone Bill/ Electricity Bill/ Property Tax Receipt/ Passport/ Voter ID Card)
  • Signature Identification from present banker
  • Assets and liabilities Statement

Fees & Charges on Canara Bank Home Loan

CategoryFee & Charges
Processing Fee
  • 0.50% of the loan amount
  • Min. Rs. 1,500 & Max. Rs. 10,000
  • Applicable tax will also be charged
Bounced cheque/ECS or SI dishonours chargesRs. 500 on each such transaction

Canara Bank Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 12.02.2024

TenorMCLR (In %)
Overnight8.10
1 Month8.20
3 Month8.30
6 Month8.60
1 Year8.85

Loan Amount of Canara Bank Home Loan

Category of LoanLoan Amount
Salaried Individuals4 years of Gross Salary
Individuals engaged in Business or to Self-employed Persons4 years Gross Annual Income
Select ApplicantsUpto 5 years Gross Salary | Income
Repairs | RenovationsUpto Rs.15.00 lakhs

Loan offered to the borrower is completely customised as per the requirement and the eligibility criteria of the customer. The value of loan depends upon applicant's income, repaying capacity, age, assets and liabilities, credit score, tenure of the loan, cost of the proposed property, previous credit history.

Margin of Canara Bank Home Loan

Margin for Canara Bank Home loan ranges from 10% to 25% of the loan amount. It depends upon the scheme and loan amount availed by the borrower.

Repayment of Canara Bank Home Loan

The repayment of Canara Bank Home Loan can be done in Maximum 30 years or upto 70 years of the age of borrower, whichever is earlier.

Security of Canara Bank Home Loan

Being it a secured loan, the borrower is required to do Equitable | Registered Mortgage of the Property in question in favour of the bank. However, the bank may ask for other security also based on the case.

Canara Bank Home Loan Schemes

Sr NoSchemeBrief Description
1Canara Bank Housing LoanRegular and most demanding scheme
2Canara Bank Home Improvement LoanFor furnishing houses or flats at very low interest rate
3Canara Site LoanExclusively to purchase a housing site being sold by Govt Housing Agencies
4Canara Home Loan PlusFor existing housing loan borrowers with good repayment track record
5Canara Home Loan to Senior CitizensExclusively designed for Senior Citizens
6Canara Housing Loan to AgriculturistsHome Loan scheme for Agriculturists or Agri-allied activities
7Canara Home Loan for NRIsNRIs and PIOs can get home loan
8Canara Yuva Awas RIN - CANYARSalaried Youth aged between 21 to 45 years
9Canara Bank Pradhan Mantri Awas Yojana (PMAY)Subsidised home loan for eligible urban beneficiaries under EWS, LIG, MIG-I or MIG-II Category

(1) Canara Bank Housing Loan: This scheme offers Housing Loan at attractive rates and ensure a house for all people. It is a regular and most demanding scheme of Canara Bank.

Important Features:

  1. Purpose:
    • Purchase of a ready built house/ flat
    • Construction of house/ flat
    • Purchase of site for construction of house/ flat
    • For repairs, renovation, expansion and upgradation of existing house/ flat. Max. Rs. 15 Lakhs in case of repairs & renovations
    • For acquiring second house/ flat
    • For Balance Transfer
  2. Eligibility:
    • Salaried individuals with a minimum confirmed service of 3 years.
    • Individuals engaged in business, professionals and self-employed persons for a minimum experience of 3 years.
    • Entry age should be less than 60 years and should repay the loan before 70 years of age.
  3. Maximum Loan Amount:
    PurposeLoan Amount
    For Construction/ Purchase of home/ Flat/Plot4 times gross annual salary/ income or Selectively 5 years gross salary/ income
    For Repairs/ Renovations/ AlterationsMaximum of Rs. 15 lakhs
  4. Margin:
    Loan AmountNew homeUpto 10 years oldOver 10 years old
    Up to Rs 30 lakhs10%20%25%
    Above Rs 30 lakhs & upto Rs. 75 lakhs20%20%25%
    Above Rs. 75 lakhs25%25%25%
  5. Maximum Tenure:Max. 30 years or borrower attaining age of 70 years, whichever is earlier
  6. Security: Equitable| registered mortgage of the property
  7. Guarantee: Guarantee of suitable resident Indian acceptable to Bank.
  8. Processing Fee:Processing fee of 0.10% subject to a minimum of Rs. 500/- and maximum of Rs. 10000/- is charged.
  9. Interest Rate:
    Interest Rate (Women) p.a.Interest Rate (Others) p.a.
    8.40% to 11.70%8.45% to 11.75%

(2) Canara Bank Home Improvement Loan: This scheme offers loan for furnishing houses or flats at very low interest rate. Loan amount can be used for purchase of household furniture items, refrigerator, fans, air conditioner/s, to put up wardrobes or any other household item.

Important Features:

  1. Purpose: Loan amount can be used for purchase of household furniture items, refrigerator, fans, air conditioner/s, to put up wardrobes or any other household item.
  2. Eligibility:
    • Owners of House/ flat who are salaried, businessmen, professionals, self-employed or NRIs are eligible.
    • Salaried individuals should have a minimum monthly net take home salary of 25% of their gross salary or Rs. 2000/- after meeting the loan instalments for the proposed loan.
    • Professionals and other non-salaried persons should have a minimum annual income of Rs. 50,000.
  3. Maximum Loan Amount: Upto one year's gross salary/ income (maximum loan quantum shall be Rs.2 lakhs)
  4. Margin:20%
  5. Maximum Tenure: Max.60 months
  6. Security: Equitable| registered mortgage of the property
  7. Disbursement: Amount will be disbursed only after acquiring ready built house.
  8. Interest Rate: 11.75% to 13.80%

(3) Canara Site Loan: A Loan Scheme to individuals for purchase of Housing sites from State Development/Town Planning Development authorities, Central and State Governments local authorities either exclusively or in partnership with private sector entities, or from any other body constituted by the Government for distribution of sites provided such layouts are duly approved by the concerned statutory authority.

Important Features:

  1. Purpose: To extend loan to purchase of Housing sites from State Development/ Town Planning Development authorities, etc.
  2. Eligibility:
    • Customer of the Bank with satisfactory dealings. New customers properly introduced & creditworthy.
    • Age of applicant should be less than 60 years.
    • NRIs also eligible.
  3. Loan Amount: 4 years gross Annual salary/ income OR 75% of the cost of the site/ guideline value, whichever is less
  4. Margin: 25%
  5. Maximum Tenure:
    • 10 Years
    • Maximum period permitted by the allotment agency for construction of house
    • Upto 65 years of the borrower at the time of closure of loan
    • Whichever is earlier among above three
  6. Security:
    • Mortgage of the residential site proposed to be purchased
    • Suitable Co-obligation or personal guarantee of adequate net worth will be insisted
  7. Interest Rate: 10.30% to 11.35%

(4) Canara Home Loan Plus: A Loan Scheme for existing housing loan borrowers in the age group of 18 to 65 years, whose have a satisfactory repayment track record for at least one year.

Important Features:

  1. Purpose: To extend additional loan to existing home loan borrowers. The loan amount can be used for any purpose other than speculative purpose.
  2. Type of Facility: Either Overdraft or Loan Facility (Loan facility only, if residual period of Housing Loan is less than 5 years)
  3. Eligibility: Existing housing loan borrowers in the age group of 18 to 65 years, whose have a satisfactory repayment track record for at least 1 year.
  4. Loan Amount: Maximum 75% of the value of property
  5. Margin: Nil
  6. Maximum Tenure:
    • 10 Years
    • Maximum period permitted by the allotment agency for construction of house
    • Upto 65 years of the borrower at the time of closure of loan
    • Whichever is earlier among above three
  7. Security: Continuing security of the property mortgaged for Housing Loan
  8. Interest Rate:
    Loan TypeInterest Rate (p.a.)
    Term Loan9.80% to 11.85%

(5) Canara Home Loan to Senior Citizens: Home Loan Scheme for senior citizens for the construction of a new house/flat, for the purchase of a house/flat, or for the purchase of a site and the construction of house/flat thereon

Important Features:

  1. Purpose: Construction of a new house/ flat, for the purchase of a house/ flat, or for the purchase of a site and the construction of house/flat thereon.
  2. Senior citizens may avail this loan to purchase their second house/flat.
  3. Eligibility:
    • Age of borrower should be above 60 years and upto 70 years of age to avail a housing loan under this scheme
    • Should have a surviving spouse or an earning legal heir below the age of 55 years
    • He/ she should have maintained a pension/ salary/ personal/ business account with Canara Bank for at least a year
  4. Loan Amount:
    • Salaried: 50 times the pension/income, up to a maximum of Rs.75 lakhs subject to maintenance of 50% NTH after taking into account the EMIs of the proposed plan
    • Self-Employed/ Professionals: 4 times the gross annual income of the individual, up to a maximum of Rs.75 lakhs subject to maintenance of 50% NTH after taking into account the EMIs of the proposed plan
  5. Margin: Nil
  6. Maximum Tenure:
    • Max.15 years or up to borrower's age of 75 years, whichever is lower
    • Security: Equitable mortgage of the House Property being financed
    • Interest Rate:
      Interest Rate (Women) p.a.Interest Rate (Others) p.a.
      8.40% to 11.70%8.45% to 11.75%

(6) Canara Housing Loan to Agriculturists: A Loan Scheme for Agriculturists, Persons engaged in allied activities like Diary/Poultry activity, Planters, Horticulturists etc.

Important Features:

  1. Purpose: Purchase of house/ flat, Construction of house/flat, Purchase of site and construction thereon.
  2. Eligibility:
    • All agriculturists owning and cultivating agricultural land of more than 5 acres of irrigated/10 acres of dry land.
    • 2 years of satisfactory dealing.
    • Agriculturists engaged in allied activities with minimum gross annual income of Rs.5 Lakhs.
  3. Loan Amount:
    • 4 times of average annual income
    • Maximum Rs.15.00 lakhs for repairs / renovations
    • NTH of 25% with a minimum amount of Rs.10000/- after meeting the EMI of proposed loan
  4. Margin: 10% to 25%
  5. Maximum Tenure: Max.30 years or up to borrower's age of 70 years, whichever is lower
  6. Security: Continuing security of the property mortgaged for Housing Loan
  7. Interest Rate:
    Interest Rate (Women) p.a.Interest Rate (Others) p.a.
    8.40% to 11.70%8.45% to 11.75%

(7) Canara Home Loan for NRIs: This scheme offers Housing Loan at attractive rates and ensure a house for all people. It is a regular and most demanding scheme of Canara Bank.

Important Features:

  1. Purpose:
    • Purchase of a ready built house/ flat
    • Construction of house/ flat
    • Purchase of site for construction of house/ flat
    • For repairs, renovation, expansion and upgradation of existing house/ flat. Max. Rs. 15 Lakhs in case of repairs & renovations
    • For acquiring second house/ flat
    • For Balance Transfer
  2. Eligibility:
    • NRIs having valid Indian passport and persons of Indian origin (PIO) having foreign passport
    • Applicant should have NRI status of 3 years
    • Minimum age 21 years and maximum age 60 years
    • Spouses and close relatives of NRIs who are residents can join NRI as Joint applicants
    • Steady income source and minimum employment abroad of 2 years with valid job contract/ work permit
  3. Maximum Loan Amount:
    PurposeLoan Amount
    For Construction/ Purchase of home/ Flat/Plot4 times gross annual salary/ income or Selectively 5 years gross salary/ income
    For Repairs/ Renovations/ AlterationsMaximum of Rs. 15 lakhs
  4. Margin:10% to 25%
  5. Maximum Tenure: Max. 30 years or borrower attaining age of 70 years, whichever is earlier
  6. Security: Equitable| registered mortgage of the property
  7. Interest Rate:
    Interest Rate (Women) p.a.Interest Rate (Others) p.a.
    8.40% to 11.70%8.45% to 11.75%

(8) Canara Yuva Awas RIN - CANYAR: This scheme offers Housing Loan at attractive rates and ensure a house for all people. It is a regular and most demanding scheme of Canara Bank.

Important Features:

  1. Purpose:
    • Purchase of a ready built house/ flat
    • Construction of house/ flat
    • Purchase of site for construction of house/ flat
    • For repairs, renovation, expansion and upgradation of existing house/ flat. Max. Rs. 15 Lakhs in case of repairs & renovations
    • For acquiring second house/ flat
    • For Balance Transfer
  2. Eligibility:
    • Salaried Persons
    • Age of applicant to be between 21-45 years
    • Applicant should have 2 years of confirmed service working for Central Govt./State Govts/ Reputed PSUs/Joint Stock Companies/ Reputed Corporates/Public Limited Companies/Private Institutions/ IT Companies/BT Companies or working as Lecturers/Asst. Professors/Professors in Colleges, Research Institutes and Universities
    • Minimum Net Take Home salary (NTH) of the borrower after meeting the proposed EMI should not be less than 30%with a minimum of Rs. 10,000
  3. Maximum Loan Amount:
    PurposeLoan Amount
    For Construction/ Purchase of home/ Flat/Plot6 years gross salary/ income
    For Repairs/ Renovations/ AlterationsMaximum of Rs. 15 lakhs
  4. Margin
    Loan AmountNew homeUpto 10 years oldOver 10 years old
    Up to Rs 30 lakhs10%20%25%
    Above Rs 30 lakhs & upto Rs. 75 lakhs20%20%25%
    Above Rs. 75 lakhs25%25%25%
  5. Maximum Tenure: Max. 30 years or borrower attaining age of 70 years, whichever is earlier
  6. Security: Equitable| registered mortgage of the property
  7. Guarantee: Guarantee of third party will be good for loan amount.
  8. Processing Fee:Processing fee of 0.50% subject to a minimum of Rs.1,500/- and maximum of Rs. 10,000/- is charged.
  9. Interest Rate:
    Interest Rate (Women) p.a.Interest Rate (Others) p.a.
    8.40% to 11.70%8.45% to 11.75%

(9) Canara Bank Pradhan Mantri Awas Yojana (PMAY)- EWS/ LIG & MIG-I/ MIG-II: This scheme offers Housing Loan to Individuals from Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) I and II category at attractive rates.

Important Features:

  1. Purpose: To extend home loan for purchase, new construction and addition of home, to existing dwelling units as incremental housing, for construction of house/ flat
  2. Eligibility: Individuals from Economically Weaker Section (EWS) & Low Income Group (LIG) category. Joint owners from the same family are also eligible. Beneficiary family should not own an all weather dwelling unit either in his/ her name or in the name of any member of his/ her family in any part of India. NRIs are also eligible in this.
    • EWS households - households having an annual income up to Rs.3,00,000 and house size with carpet area upto 30 square meter.
    • LIG households - households having an annual income above Rs.3,00,000 and up to Rs.6,00,000 and house size with carpet area upto 60 square meter.
    • MIG I households - households having an annual income above Rs. 6,00,000 and up to Rs.12,00,000 and house size with carpet area upto 120 square meter.
    • MIG II households - households having an annual income above Rs. 12,00,000 and up to Rs. 18,00,000 and house size with carpet area upto 150 square meter.
  3. Subsidy
    • EWS/ LIG Borrowers will get Credit Linked Subsidy at 6.50% for upto Rs. 6 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,67,280 only.
    • MIG-I Borrowers will get Credit Linked Subsidy at 4% upto 9 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,35,068 only.
    • MIG-II Borrowers will get Credit Linked Subsidy at 3% upto Rs 12 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,30,156 only.
  4. Table for detailed subsidy scheme
    ParticularsEWSLIGMIG-IMIG-II
    Interest Subsidy (% p.a.)6.5%6.5%4%3%
    Maximum loan tenure (in years)20202020
    Eligible Housing Loan Amount for Interest Subsidy (Rs.)6 lakhs6 lakhs9 lakhs12 lakhs
    Max. Dwelling Unit Carpet Area30 Sq. m.60 Sq. m.120 Sq. m.150 Sq. m.
    Maximum Subsidy Amount(Rs.)2672802672802350682,30,156
  5. Maximum Loan Amount: Max. Rs. 30 lakhs
  6. Margin: 10% to 25%
  7. Maximum Tenure: Max.30 years or up to borrower's age of 70 years, whichever is lower
  8. Security: Equitable| registered mortgage of the property
  9. Interest Rate:
    Interest Rate (Women) p.a.Interest Rate (Others) p.a.
    8.40% to 11.70%8.45% to 11.75%

How to apply home loan from Canara Bank under Pradhan Mantri Awas Yojana (PMAY)?

First of all, you apply for home loan from Canara Bank and along with your loan application, you need to fill the Pradhan Mantri Awas Yojana (PMAY) Form and submit it with your loan application form with the bank. Bank will take care of its processing. Bank will check your eligibility and if you are eligible in the category you have applied for like EWS/ LIG/ MIG-I/ MIG-II, then accordingly the interest subsidy would be credited in your bank account.


Tax Benefits of availing Home Loan

There are two types of tax benefits associated with home loan for Resident Indians:

Repayment of the Principal Amount: One can get a Tax rebate under section 80C of the Income Tax Act on whole amount repaid by him in a financial year, maximum upto Rs. 1,50,000/- each financial year (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).

Repayment of the Interest on Home Loan: Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24(1) of the Income Tax Act. One is eligible for a Tax Rebate of maximum of Rs. 2 lakh per financial year for home loan interest paid by him/her during that financial year.


What is the Impact of MCLR on EMI of Canara Bank Home Loan Borrowers?

After April 1, 2016, all bank loans (including home loans) are linked to the bank's MCLR with or without a mark-up or spread (bank margin). Earlier, they were linked to the bank's base rate. All banks are required to disclose their MCLR each month.

Banks generally hike MCLR, whenever there is a hike in Repo Rate by the RBI. Banks may increase MCLR due to surging bond yields and higher provisioning requirements, even when the RBI has not hiked Repo Rate.

Home Loan Interest Rate can be equal to the MCLR or have a 'margin' or 'mark-up' or 'spread' but can never be lower than MCLR.

Home Loan Interest Rate is linked to the bank's MCLR. If MCLR goes up, the home loan rates will also go up. Home Loan Interest Rate will not be impacted by hike in MCLR only if banks reduce the mark-up (margin) in the home loan. If MCLR goes down, the home loan rates will also go down.

For MCLR-linked home loans, the rate is reset after 6 or 12 months according to the agreement between the borrower and the bank. The interest rate applicable on the reset date will become the new rate on which the future EMI's will be calculated.


What should Base Rate Home Loan Borrowers do?

Home Loan Interest Rate of old home loan borrowers (who had taken home loans before April 1, 2016) are linked to the base rates of the banks. Hence the EMI which they are paying is also linked to base rate. Banks have always remained very sluggish for passing on the benefits of RBI rate cuts to the borrowers.

Now after April 1, 2016, Home Loan Interest Rate is linked to MCLR (Marginal Cost of funds based Lending Rate) for home loan borrowers in order to resolve the problems of the Base Rate regime.

It will be beneficial for them to switch to MCLR linked rate if the difference between what they are paying (under base rate) and what the bank is offering (under MCLR) is significant. So they must switch to MCLR linked rates, if outstanding loan is high and the remaining tenure is also long.

In that situation, Base Rate Borrowers have following two options:

(1) Switch to MCLR linked home loan with the same bank: It is beneficial, in case the bank is charging a nominal switching fee such as 0.50% or less on outstanding amount.

(2) Transfer the loan to another bank on MCLR: It is feasible, if new bank has waived off processing fee (which they generally do in order to attract the customer and increase their business) or is charging very less processing fee and legal and transfer costs.

The borrower must compare both the above-mentioned options and opt for the one which is more beneficial to them in terms of money saved. It will result not only in reduction of future EMIs but also a huge amount of interest will be saved during remaining tenure.

One may as well continue the loan on base-rate especially if the maturity is near and need not go through the process of conversion.

Further, the Reserve Bank (RBI) is going to link the base rate for loans given by banks to the MCLR from April 1, 2018. Once it happens, the base rate will automatically increase or decrease along with the MCLR without any specific action required for adjustment. This will be very beneficial for the home loan borrowers whose rates (EMIs) are still linked to the base rate.


EMI Payment Methods of Canara Bank Home Loan

You can repay Canara Bank home loan in any of the following methods:

(1) Electronic Clearing Service (ECS): Electronic Clearing System is preferred for faster payments and collections. If you have an account with other bank than Canara Bank then you can use ECS for loan repayment. You will have to fill up a form and submit the same with your bank for debiting EMI every month from your account. In this case, your EMI will be automatically debited every month from your bank account and credited to Canara Bank towards loan repayment instalment.

(2) Standing Instruction (SI): If you maintain your account with Canara Bank, then you can use this method. Under this method, you will have to issue a Standing Instruction to Canara Bank to debit your EMI amount on a due date every month from your Canara Bank account and credit to Canara Bank loan account towards loan repayment instalment. You save a lot of time and energy by giving standing instructions to the bank to carry out the transaction on your behalf each time.

(3) Post-Dated Cheques (PDCs): In this method, you need to submit post-dated EMI cheques to Canara Bank for a certain period of time, which are deposited by the Canara Bank on the due date. This alternative is cumbersome and time-consuming and involve a manual procedure of visiting the Canara Bank in a timely manner.

Points to Note Regarding EMI Payment Methods

  1. A fresh set of PDCs need to be submitted in a timely manner.
  2. Post Dated Cheques are accepted only for non-ECS locations.
  3. It is good to pay your EMIs either through the Standing Instruction or ECS for faster and timely remittance of your loan instalments.

In case of Prepayment of Canara Bank Home Loan, will EMI change?

One can pre-pay Canara Bank Home Loan without any prepayment charges as it allows prepayment at nil charges in case of floating rate home loans. If the borrower makes a prepayment, the outstanding balance of principal amount of his home loan reduces. Then in that case he has following 2 options:

  1. He can continue with the existing and reduce the loan tenure
  2. He can reduce the EMI and keep the loan tenure the same

Out of above 2 options, first option is more beneficial for the borrower as he pay less interest to the bank as the pay off home loan will be faster.


Ways to Reduce your Canara Bank Home Loan EMI

  • Negotiate with your banker on lower interest rate
  • Apply for longer tenure
  • Give maximum amount as down payment
  • Pre-pay loan amount
  • Switch to another bank/ FI offering lower interest rate

Latest News on Canara Bank Home Loan

  • June 12, 2023: Canara Bank has raised Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 12.06.2023
  • October 7, 2021: Canara Bank has cut its MCLR rates by 10 bps to 15 bps across tenures, effective from 07.10.2021
  • February 7, 2021: Canara Bank has cut its MCLR rates by upto 30 bps across tenures, effective from February 7
  • January 24, 2020: Government appoints L V Prabhakar as Managing Director and CEO of Canara Bank
  • January 23, 2020: Canara Bank net profit rose 3.8% boosted by a surge in retail loans. Its earnings rose to Rs. 329.62 crore from Rs. 317.52 crore the year ago
  • January 14, 2020: Canara Bank calls off Can Fin Homes stake sale
  • December 23, 2019:CRISIL has placed its long-term debt instruments on 'rating watch with developing implications'
  • August 7, 2019: Canara Bank has cut its MCLR by 10 basis points across all tenors, effective from Aug 7
  • June 15, 2018: Canara Bank sees credit growth at 14% this fiscal; plans to raise Rs. 70 bn
  • June 7, 2018: Canara Bank hikes MCLR for tenures upto 1 month by 0.10% and for tenure above 1 month by 5 basis points i.e. by 0.05%
  • May 7, 2018: Canara Bank hikes MCLR for all tenures by 5 basis points i.e. by 0.05%
  • Mar 31, 2018: Canara Bank calls off proposal to divest stake in Can Fin Homes
  • Mar 14, 2018: HDFC eyes Canara Bank's 30% stake in Can Fin Homes
  • January 24, 2018: Canara Bank's net profit plunged 61% to Rs 126 crore in Q3 ended December 31, 2017, due to higher provisions for Non Performing Assets (NPAs)

FAQs on Canara Bank Home Loan

  1. What is an EMI?

    EMI or Equated Monthly Instalment is a fixed amount paid by you to the bank on a specific date every month. The EMI's are fixed when you borrow money from the bank as a loan. EMI's are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank alongwith interest.

  2. What is Pre-EMI Option?

    Pre-EMI is an option in which the borrower has to pay only interest on loan amount during the progress on the construction of the project. The actual EMI payment will be started only after his/ her possessing the house.

  3. What are the various interest rates offered on home loans?

    Interest rates offered vary for women borrowers and others. Women borrowers are offered home loan at lower interest rate in Canara Bank.

  4. What is the eligibility criteria for getting Canara Bank home loan?

    The eligibility criteria for Canara Bank Home Loan is as follows:

    BasisSalaried CustomersNon Salaried Customers
    AgeMinimum 18 years & Maximum 70 YearsMinimum 18 years & Maximum 70 Years
    IncomeAnnual income must be atleast Rs.1.2 lakhsAnnual income must be atleast Rs 2 lakhs
    Job/ Business Experience1 Year2 Years
    Age of Co-applicantMinimum 18 yearsMinimum 18 years
  5. Can joint-applications be made for Canara Bank Home Loans?

    Yes. Joint applicants can be made for Canara Bank Home Loans.

  6. What processing fee is charged by Canara Bank home loan?

    Canara Bank charges a low processing fee for its home loans which is as mentioned below:

    • 0.50% of the loan amount
    • Min. Rs. 1,500 & Max. Rs. 10,000
    • Applicable tax will also be charged
  7. What are the maximum number of properties that I can own?

    You can own as many properties as you want.

  8. What is a down payment?

    Down payment is the amount that is paid by the borrower on an up-front basis. Banks usually pay around 75% to 85% of the cost of the property, hence the rest amount the borrower needs to pay as down payment.

  9. What is the average tenure of a home loan?

    Home loans average tenure ranges generally between 3 and 30 years.

  10. Can I pre-pay my Canara Bank home loan? Is there any penalty?

    Yes. You can pre-pay your Canara Bank home loan with nil penalty for floating rate home loan and with upto 2% of pre-payment penalty for fixed interest home loan.

  11. What security do I need to furnish for Canara Bank home loan?

    The property purchased out of the loan is taken by Canara Bank as the security. However, if Canara Bank feels then it can ask for additional securities too.

  12. Who is an NRI?

    NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.

  13. What is the mode of payment for NRI home loans?

    Generally, payments are made through NRI Account like NRO, NRE, NRNR and FCNR accounts. NRI home loan can be paid by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI.

  14. What kind of job makes me eligible for Canara Bank home loan?

    You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.

  15. What is the tax benfits available on Canara Bank home loan?

    As per Section 80C of the Income Tax Act, in case of the principal amount, you can claim a deduction of upto Rs 1.5 lakhs while in case of interest, it is upto Rs. 2 lakhs.

  16. Are long-term home loans beneficial or short-term loans?

    It dependes on the financial status of the borrower. If he wants lower EMIs then Long-term loans, if not, then he can go with short-term loans with higher EMIs with the benefit of lesser interest.

  17. Do I have to pay only fixed rate of interest or floating rate is also there in Canara Bank Home Loan?

    No, you have the option to choose any kind of rate of interest you want to pay. You can pay floating rate of interest which is linked with the MCLR and keeps changing from time to time.

  18. My EMI is increased due to an increase in the rate of interest being it flexible. What do I do for lower EMI?

    EMI increases with the increase in the rate of interest if you have opted for floating rate. You may ask your bank for increasing the loan tenure, if you want to get your EMI reduced or you can make some part pre-payment to your bank for reduction in EMI.

  19. What are different modes of payment of EMI of Canara Bank Home Loan?

    The EMI can be paid through various modes such as Post dated cheques, Electronic Clearing Service (ECS), Standing Instruction (SI), etc.

  20. Can I apply for a home loan to renovate my home or flat?

    Yes, you can apply for home loan for any purpose such as buying a home, constructing a home, repairing of your home, home improvement, balance transfer and home renovation.

  21. What is the difference between EMI and Pre-EMI?

    You repay your home loan through Equated Monthly Instalments (EMI), which includes principal and interest component. EMI repayment starts from the month subsequent to the month of final disbursement. Pre-EMI is only a simple interest, which you are required to pay every month till the loan is not fully disbursed.

  22. How to get my Income Tax certificate from Canara Bank?

    Income Tax certificate will be despatched to your after the end of financial year by Canara Bank. You may also contact your nearest Canara Bank branch or your can also send a request through its website for the same.


Contact details of Canara Bank, Canara Bank SMS balance check number SMS banking, Canara Bank mobile banking, Canara Bank toll free number,Canara Bank toll free number 24*7, Canara Bank miss call number.

  • MISSED CALL NUMBERS - 09015734734, 09015613613
  • CUSTOMER CARE NUMBERS - 18004250018, 18001030018, 18002083333, 180030113333
  • CONTACT NUMBERS - 080- 22221581/ 582/ 0490/ 0491/1788/ 1789/ 1790/ 1984/ 1985/ 1986

Canara Bank Contact Details

  • BANK OFFICIAL WEBSITE - https://www.canarabank.com
  • CONTACT NUMBERS - 080- 22221581/ 582/ 0490/ 0491/1788/ 1789/ 1790/ 1984/ 1985/ 1986
  • EMAIL ID - [email protected]
  • MISSED CALL NO. - 09015734734, 09015613613
  • CUSTOMER CARE NO. - 18004250018, 18001030018, 18002083333, 180030113333
  • TOTAL BRANCHES - 5682
  • TOTAL ATMS - 8533
  • HEADQUARTER - Bengaluru
  • BANK ADDRESS - Baroda Bhavan 7th Floor,R.C. Dutt Road, Vadodara-390 007, (Gujarat) India.
Canara Bank EMI Calculator  Canara Bank Branches
Canara Bank Home Loan FAQs  Home Loan Document Required

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Canara Bank Home Loan Interest Rate at 8.40% to 11.75% 24 Feb 2024