Canara Bank Canara Mortgage Loan

Canara Bank Mortgage Loan Scheme

This loan helps borrowers get access to funds by mortgaging their property to meet their urgent financial needs other than business or speculative purposes. While a mortgage loan can be used to meet financial expenses such as a wedding, foreign travel, higher education and so on, it can also be used to consolidate your debts. The bank offers this loan to salaried applicants with a minimum continuous service of three years and self-employed professionals who have experience or practice of at least three years.

Features of Canara Mortgage Loan

Why this Loan?

• The Canara Bank Mortgage Loan is meant for borrowers who need assistance to meet financial needs other than for business or speculative purposes
• Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, thereby consolidating their debts
• It can be availed by NRIs where resident close relatives are co-borrowers can also avail this loan

Loan Amount

• The maximum loan amount offered under this loan scheme is up to 50% of the value of property offered as security subject to a maximum of Rs. 10 crore

Interest

• The applicable interest rate on this loan is defined as the sum of two factors namely, Repo Linked Lending Rate (RLLR) and Credit Risk premium based on the CIC Risk Grade of the borrower
• As of October 2020, the interest rate applicable to this loan may range from 9.95% to 12.00%

Repayment

• This loan must be repaid within 7 years

Eligibility

• Individual customers, salaried as well as self-employed, having satisfactory dealings with the bank are eligible for this loan
• Properly introduced and credit-worthy new customers can also avail this loan
• NRI customers with resident close relatives as co-borrowers are also eligible for this loan
• The Net Take Home Income requirements after meeting the EMIs of proposed loan is a minimum of 20% of the loan or Rs. 20,000, whichever is higher

Security Needed

• The bank accepts mortgage of immovable properties including residential property, commercial property and plot of land other than agricultural land

Margin Money (Borrowers Contribution to Total Cost)

• As of October 2020, the margin for this loan is not mentioned on the bank’s website. We suggest talking to a bank representative before applying for this loan scheme

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

• The bank charges up to 1% of the loan amount for processing the loan with a minimum of Rs. 5,000 and a maximum of Rs. 50,000

Documents Needed for Individuals (Salaried and Self-employed)

• Loan Application Form duly filled and signed by the applicant and co-applicant, if any
• Two Passport Size Photographs of applicant and co-applicant
• Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
• Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
• Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
• Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
• Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan / Form 26AS / TDS Certificate, IT Assessment, etc.
• Income proof, income tax assessment or IT return documents of the guarantor
• Copy of lease deed
• Approved plan of building
• Title deeds of the property, latest tax receipt or legal scrutiny report
• Certificate of balance if finance is availed against property from any other source