Canara Bank Loan Against Property

Following are the key details of loan against property Canara Bank:

Canara Bank mortgage loan interest rate 2023 is linked to the RLLR of the bank, which is 10.30% – 12.80% p.a. w.e.f 12.09.2023. The interest rates depend on the credit risk of the borrower, the value of the security offered, the current RLLR of the bank, and other factors:

Apart from the interest rate, the borrower also has to pay the following charges on Canara Bank property loan:

• Processing fee: 0.50% of the loan amount, subject to a minimum of Rs. 5,000.
• Documentation charges: Rs. 100 per Lakh, subject to a minimum of Rs. 1,000 and a maximum of Rs. 25,000.
• Prepayment charges: Nil.

Below is the comparison of Canara Bank loan against property interest rates with the interest rates on loans against properties offered by other top banks and HFCs. You can compare the rates offered by different lenders to choose the most affordable option:

• Canara Bank loan against property quantum can go up to 50% of the property value. The maximum amount can go up to Rs. 7.5 Crores.
• Both resident and non-resident Indians can apply for a Canara mortgage loan.
• The maximum repayment tenure for Canara LAP is up to 15 years.
• Canara Bank LAP interest rates range from 10.30% – 12.80% p.a.
• Currently, the lowest Canara Bank Loan Against Property EMI is Rs 1093.03 per lakh.
• The processing fee for Canara Bank LAP is 0.50% of the loan amount, with a minimum capping of Rs. 5,000.
• Canara Bank requires a minimum margin of 50% of the value of security.

Following are the detailed Canara Bank loan against property eligibility criteria:

Canara Mortgage Eligibility Criteria

• Individual customers:
  • Who have satisfactory dealings with Canara Bank
  • The applicant should be aged at least 18 years old
  • May apply singly/ jointly with other eligible individuals
  • New customers should be well introduced to the Bank with satisfactory OPL/ market report
• NRI customers:
  • NRIs can avail the Canara mortgage loan with their resident close relatives as co-borrowers
• Employees of banks:
  • Employees of banks (PSU/ Private/ Foreign/ Co-Operative Banks) are also eligible
• Salaried individuals:
  • The applicant must produce documentary evidence regarding their salary slips
  • The applicant should be employed for at least 1 year and confirmed in the service
  • Maximum up to 6 months of break in service is allowed in case of switchover from one company to another
• Other than salaried individuals:
  • The applicant must produce documentary evidence regarding their annual income
  • The applicant should have been in the business/ profession for at least last 3 years
  • The business account should be exclusively maintained with Canara Bank and the entire business transactions/ turnover should be routed through Canara Bank.

• No loans under the scheme to Companies/ Firms/ Business Establishments/ Trusts/ HUFs.
• Mortgage of residential house/ flat/ commercial property in the name & possession of the borrower (self-occupied/ vacant or fully/ partially tenanted) are accepted as security.
• Loan against lease hold properties where lessor is a government authority and leasehold rights permit mortgage, can be permitted selectively.
• The bank requires a margin or minimum 50% of the value of security.
• Security:
  • Equitable Mortgage of property acceptable to the bank with a clear marketable title
  • Minimum value of the property should be 200% of the loan amount
• Guarantee:
  • Personal Guarantee of spouse/ legal heirs is mandatory

Canara Bank Rent Eligibility Criteria

• Existing customers with satisfactory dealings.
• New customers whoare well introduced with a satisfactory OPL/market.
• The property should have been leased/ rented out to PSUs/ Central/ State/ Semi Government Undertakings/ Reputed Corporates/ Banks/ Financial Institutions/ Insurance Companies/ MNCs including the property leased/ rented out to Canara Bank’s Branch/ Office or House/ Flat leased/ rented out to the Bank as Quarters to its Officers/ Executives.
• The bank requires borrowers to maintain a margin of minimum 25%.
• Security:
  • Equitable Mortgage of the leased property value should be 100% of the loan amount.
  • In case EMT is not possible for any reasons, security by way of mortgage of an alternate property with a value of at least 150%, should be available.
  • Assignment of lease rentals in favour of the bank.

Canara Mortgage Documents Required

You will be required to furnish the following documents to obtain a Canara Bank LAP:

• Stipulated mortgage loan application along with 2 passport-size photos of the applicant/ co-applicants/ guarantor
• KYC documents of the applicant/ co-applicants/ guarantor:
  • Identity proof: PAN Card/ Driver’s License/ Voter ID/ Passport/ Aadhar Card/ etc.
  • Residence proof: Driver’s License/ Voter ID/ Passport/ Aadhar Card/ Electricity Bill/ Telephone Bill/ Business Proof related GST and others
• Income proof for salaried individuals:
  • Salary slips of the latest 6 months (including co-applicants)
  • Proof of confirmed service: Form 16 & ITR (if any) of 3 years supported by Employee ID/ Appointment Letter/ Confirmation in services confirming the duration of the employment
• Income proof for business/ self-employed individuals:
  • Balance Sheet and Profit & Loss account for the past 3 assessment years
  • ITR filed for the past 3 assessment years
  • Brief note on the nature of business
  • Proof of business
• Documents required for NRI applicants:
  • Identity proof: Copy of first 4 pages of passport & page with visa stamp, or IC/PIO card
  • Valid work permit
  • Copy of salary certificate duly attested by Indian Embassy/ Consulate/ Employer
  • Account statement/ passbook of the overseas bank showing salary & savings
  • Notarized Power of Attorney, if the applicant proposes to authorize a third party to execute the documents/ complete the mortgage formalities/ obtain the loan instalments
• Property documents:
  • Copy of the approved plan of building
  • Encumbrance Certificate for the past 13 years
  • Khata Certificate/ Khata Extract
  • Up-to-date tax paid receipts of the property
  • Valuation report from bank’s approved valuer
• Additional documents for in caseof takeover from other lenders
  • NOC from the existing banker regarding preclosure
  • List of original documents held by the Transferor Bank & their attest copy
  • Copy of Sanction Letter
  • Statement of Loan Account from the date of sanction
  • Other documents as required by the bank.

Canara Bank Rent Documents Required

• Stipulated mortgage loan application along with 2 passport-size photos of the applicant/ co-applicants/ guarantor
• KYC documents of the applicant/ co-applicants/ guarantor:
  • Identity proof: PAN Card/ Driver’s License/ Voter ID/ Passport/ Aadhar Card/ etc.
  • Residence proof: Driver’s License/ Voter ID/ Passport/ Aadhar Card/ Electricity Bill/ Telephone Bill/ Business Proof related GST and others

• Age proof of the applicant/ co-applicants
• A photocopy of PAN Card
• Statement of holding of scrips issued by DP
• Latest salary certificate or income proof like ITAO/ ITR
• Financial Statements for the last 2 years (for non-salaried individuals)

You can use the Canara Bank Loan Against Property EMI Calculator to know your EMI outgo even before applying for the loan. To use the Canara Bank mortgage loan calculator, follow the steps given below:

• Open the Loan Against Property EMI Calculator page on the bank’s official website.
• Select the required loan amount, tenure (in months), and the applicable rate of interest.
• As soon as you select the above information, the calculator will display the monthly EMI amount along with the total interest outgo, total payable amount, and interest percentage.

Below is an example using the Canara Bank EMI calculator:

You can also calculate your Canara mortgage loan EMI using the formula given below:

EMI amount = [P x R x (1+R) ^N]/[(1+R) ^N-1], which uses three inputs i.e., Principal loan amount (P), tenure (N), and rate of interest (R).

To calculate Canara Bank Loan Against Property EMI, use Online EMI Calculator. It is free and available 24X7. Share loan details including loan amount, repayment tenure and interest rate. You will instantly get loan EMI and total interest component by using Canara Bank Loan against Property EMI Calculator.

Let’s take a quick overview on Canara Bank Loan Against Property EMIs for 5, 7 & 10 years at 10.30% – 12.80% p.a. for various loan amounts.

You can also use Loan Against Property EMI Calculator to find out how much you will save on interest and how it affects your Loan EMI.

Canara Bank offers the following types of loans against property for non-business purposes, any unforeseen expenses, urgent personal and medical needs etc:

• Loan against the mortgage of residential house/ flat/ commercial property in the name and possession of the borrower (self-occupied or vacant or fully/ partially tenanted).
• Loan against Leasehold properties where lessor is a government authority and Leasehold rights permit mortgage.
• Takeover of existing mortgage loan/s from other Banks/Financial Institutions (having satisfactory dealings with Canara Bank).

You can call Canara Bank for your complaints & queries at following Toll-Free Numbers:

1800 425 0018

1800 103 0018

1800 208 3333

1800 3011 3333

If calling from outside of India, Call on Non Toll Free Number:

+91-80-22064232