Canara 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%
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)
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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Canara Bank offers cheapest home loan interest rates
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