Having a savings account at Canara Bank and want to take the relationship further with a home loan to buy a property? Well, before choosing Canara Bank your home finance partner, better be aware of the interest rates the public lender charges, besides the purposes for which it extends a loan. Being aware of these only helps you make a good decision with regards to a home loan that demands a long-term commitment of say 20-30 years. So, get ready to listen to Canara Bank Home Loan in detail here.
Canara Bank Home Loan Interest Rates – Key to a Smooth Repayment
The bank offers you a loan at 8.45%-8.65% per annum for purposes such as purchasing or constructing a house or flat, purchasing a site and constructing a house on the same, repairing, renovating, expanding, upgrading and creating additional amenities, etc. The interest rates you see is benchmarked to 1-year MCLR of 8.40%. The eventual rates are a spread above the MCLR. Even though the MCLR can change every month, the canara bank home loan interest rate will be reset once a year. So the interest rate will be according to the prevailing MCLR at the time of reset.
Canara Bank Home Loan EMI Calculator
Do switch on the calculator to compute the EMI and interest payable on your loan till the expiry of its tenure. The calculation depends on three variables –
Since it’s a home loan, you can be slightly flexible in choosing a tenure. A longer tenure does lead to a greater payout of interest compared to a shorter one. So, if you are looking to avail a home loan of say ₹40 lakhs for a period of 25 years. The bank offers you the same at say 8.60% per annum. What will be the EMI and interest outgo on the same? The EMI and interest are going to be ₹32,479 and ₹57,43,726, respectively. If you tweak your application by opting a 20-year tenure, the same EMI and interest would be ₹34,967 and ₹43,91,962, respectively.
Canara Bank Home Loan Eligibility
Here’s the eligibility to gain approval for Canara Bank Home Loan.
- All the salaried who are confirmed and have served a minimum of 3 years are eligible
- Self-employed businessmen/professionals with a minimum of 3-year experience are also eligible
- While the age of the borrower must not exceed 60 years at the time of loan application, his/her age must be below 70 years at the time of proposed loan maturity
How Much a Home Loan Can You Expect to Receive from Canara Bank?
The maximum loan is contingent upon the gross annual income and the cost of the property. On a general note, the maximum loan can be 4 times the gross annual income as per ITR/ITAO of the immediately previous year (for salaried). On the other hand, self-employed businessmen or professionals can get a loan of up to 4 times the average gross annual income of all the four years. However, the income needs to be supported by a documentary proof. Canara Bank would, however, won’t finance 100%. It would provide finance at 75%-90% of the property cost, with the remaining 10%-25% have to be paid from your end.