Canara Bank Property Loan – all the things you need to know

Founded in 1906 and nationalized in 1969, Canara Bank has achieved various milestones over the years. Canara Bank aims to be the market leader and a “financial conglomerate” with nine subsidiaries and approximately 5708 branches across the country (as of June 2015). In addition to its commercial banking operations, Canara Bank has undertaken various activities related to rural development, corporate social responsibility and greater financial inclusion among others. Canara Bank also offers real estate loans

For all the information regarding the loan you should refer the whole article :-

  • What is Canara Bank property loan and how it works ?

The Canara Bank Property Loan  (mortgage on debt free property in major cities or other centres ) is intended to meet business/personal financial needs and to be used for all capital market, real estate and high risk purposes. They provide you with the best services and their team is very punctual and honest towards their work . For all the other criteria for the loan you may read forward :-

Eligibility criteria for Canara Bank Property Loan 

The eligibility criteria is as follows :-

Age :- The minimum age for applying for loan is 18 years while the maximum age is 60 years.

Loan Amount :- 

  1. Salaried individuals :- The amount depends on the fact that they are having at least 40 % of their salary with them after EMI deduction of the loan.
  2. Non – salaried individuals :- Loan amount doesn’t exceed the past three years income.

 * 10 crores is the maximum loan amount provided but loan should be at least cost 50 % of total value . *

Types of loan borrowers :-

  • Salaried individuals (single or jointly)/ professionals
  • Self-employed
  • Businessmen
  • Traders
  • NRIs (must be earning regularly eventually they should have a regular source of income )
  • Firms (partnership or proprietary)
  • Any company (except NBFCs)

Types of Canara Bank Property Loan :-

  • Demand loans
  • Term loan
  • Overdraft facility

Repayment of Loan:-

  • Demand loan :- 3 years.
  • Term loans :- Usually 7 years can vary accordingly.
  • Overdraft facility :- Usually 1 year but can vary according to renewal.

Security provisions of Canara Bank Property Loan :-

  1. Debt free residential/commercial property occupied or rented by the borrower. Canara Bank does not offer loans for vacant land.
  2. Business: Mortgage of property and personal guarantee from directors/partners.
  3. Individuals: real estate mortgage and personal guarantee of the owners
  4. In certain cases, property already pledged to Canara Bank can also be used as collateral, provided the borrower has a good track record.
  5. Property owned by third parties on behalf of relatives and spouses is permitted.

Interest Rates :-

Interest rates are different for different categories they are as follows :-

  • Business – Base rate +3.75%
  • Moderate Risk – Base rate +4.5%
  • High Risk – Base rate +4%
  • Individuals – Base rate +3.75%

Other important informations:- 

  • Documentation charges is Rs. 100 per lakh.
  • Miscellaneous charges are to be borne by the borrower.
  • Inspection charges can raise up to 10 lakh but can’t exceed it.
  • There is no prepayment charges.
  • Processing fees is 0.5% on every renewal of overdraft facility.
  • GST charges of 18 % is applicable on any loan.

Documentation required for Canara Bank Property Loan :- 

  1. Borrowers are required to submit the following documents in order to avail loans against real estate offered by Canara Bank
  2. Completed loan application
  3. Annual accounts for the last two years (self-employed)
  4. Copy of the rental agreement
  5. IT returns
  6. Proof of income (both sponsor and applicant)
  7. Certificate of Balance
  8. Title deeds
  9. Legal review report
  10. Blueprint (approved)
  11. Passport photos (2 copies)