Canara Bank offers cheapest home loan interest rates now

Canara Bank offers cheapest home loans in India nowCanara Bank offers cheapest home loan interest rates now

Last week Canara Bank indicated that it is offering cheap home loan interest rates of 9.95% per annum in India. Recently SBI has hiked the home loan interest rates to 10.10%. Currently Canara bank offers lowest interest rate home loans in India. Due to festive offer, it provides home loans with zero processing fees up to 31-Dec-2013. In this article, I would provide some insights about Canara Bank cheapest home loans.

Canara Bank cheapest Home loan interest rates

Generally all banks offer home loan interest rates above its base rate. Canara bank base rate is 9.95%. Below are the home loan interest rates of Canara bank.

  • Upto Rs 30 Lakhs – offering at Base rate i.e. 9.95%
  • Above Rs 30L to Rs 75L – at base rate + 0.05% = 10%
  • Above Rs 75 Lakhs – at base rate +0.25% = 10.20%

Also read: Residential or commercial property – Where to invest?

Who are eligible for Canara bank home loan?

  • Salaried individuals
  • Individuals in business / profession / self employed persons
  • NRI’s are also eligible without any specific permission from RBI
  • Individuals above 55 years are eligible as per stipulated conditions from RBI

How much home loan you are eligible?

  • Salaried individuals : 4 years gross salary
  • Individuals in business or profession or self employed: 4 years gross annual income
  • NRI’s : Gross income for 2 years
  • Rs 7.5 Lakhs eligibility for renovation / repairs / additions to existing house / flat. This amount would be up to Rs 15L for select metro cities.

How much finance would be provided for a house or flat?

  • New House / Flat – up to 80% would be provided as housing loan
  • Old House / Flat – up to 75% would be provided as housing loan

What are the processing charges?

It charges 0.5% as processing charges. However currently due to festive offers, it says zero processing charges upto Dec-2013.

What documents you need to submit for Canara Bank home loans?

  • Stipulated Loan Application with 2 passport size photos of the applicant / guarantor
  • Sale Deed
  • Agreement for Sale
  • Copy of the approved plan for the proposed construction / extension / addition
  • Detailed cost estimate / valuation report from Bank's Panel Chartered Engineer / Architect
  • Allotment letter of Co-operative Housing Society / Apartment Owners' Association / Housing Board / NOC from the Society / Association / Builders / Housing Board
  • Legal Scrutiny Report, EC for the past 13 years, Property Tax paid receipt, Khata and permission for a mortgage, wherever necessary
  • Salary Certificate and Form No.16 (in case of salaried persons)
  • IT Returns filed for the past two years (in case of non-salaried persons)
  • A brief note on the nature of business, year of establishment, type of organization, etc., (in case of self-employed)
  • Balance Sheet and P&L Account for the past three years (in case of self-employed)

Also read: Fixed Rate or floating rate home loan – Which is better?

Conclusion: Every individual thinks of having their dream home. But due to rising interest rates, individuals think that it would be still there “dream”. Cheapest home loans offered by Canara bank can be considered as good opportunity now.

Readers, what is your experience about Canara bank cheapest home loans. Do you have any negative experiences? If so, please do share.

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Suresh
Canara Bank offers cheapest home loan interest rates

Suresh KP

11 comments

  • praveen B

    Hi Suresh,

    My brother is going to US for Higher studies.

    Can you let me know which banks are offerring the low interest rates for Education Loans.

    thanks
    praveen

  • avs

    Hi Suresh,

    I have taken 30L amount loan from SBI Maxgain account.

    1.I took this loan for purpose of tax benfit.though i have capacity of paying 30L .Is it correct decision.

    2.If i put 30L in maxgain account,I understood interest will not caluculate for 30L.So in this case,still EMI will deduct?,if deduct is it only principle.

    3. Finally i am confused whether to keep loan for tax saving or pay the amount and clear the loan.

     

    Thank you

    Best Regards,

    Narayana

  • MD ATIF AHMED

    sir, i want to take  thirtylac rupee loan from uyour bank.so kindly send me the details of document,intrest rates etc on my email id.atisohdelhi@hotmail.com.                       

                                    your faithfully atif

  • Vikas

    Hello Suresh Sir,
    Please write detail article on things to be consider when purchase flat?

  • ullas

    Good Day Sir,

    Sir please advice me regarding this.I want to buy a property together with a house .Total value around 40 L and I need to take loan around 30 L.From this article I understood that canara bank is the best option now.Sir I have a few questions regarding this

     1) this is fixed rate or floating rate? or which one I should prefer now?

    2) Sir i will be able to pay back capital amount of  30 lakhs in about 5 yrs -for each yr minimum 6 lakhs-then how can be this loan good for me?

     3) Right now for buying this property I need 30 L more ,so which is the better option-taking a housing loan from any bank or I can go for some other options-If yes please advice me regading that because I heard that normally banks loans are not good for short periods .In my case I can pay back full amount in minimum 5 yrs.

    Thanks in advance

    • Hi Ullas, 1) Canara bank current offer is for floating rate only.  2) You should clear-off such loans in early stages of loan, else you would pay interest for first 5 to 6 years and later on the capital would be re-paid 3) Home loans are best comparing to any other loans as others comes between 12% to 18% interest. Home loans comes only for 9% to 12%. Don’t think for other options unless you have any investment which you can dispose and pay the money to buy house.

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