Canara Bank Loan Against Property – Eligibility & Interest Rates 2016

Loan Against Property

Canara Bank is one of the leading banks in India providing a personal loan, home loan, loan against property, car loan, etc. Canara Bank mortgage loan or loan against property is a loan against mortgage of unencumbered property located in metro/urban centres. Loan against property of Canara Bank is available to the individuals for a non-business purpose at the rate of interest 9.65% per annum.

Canara Bank Loan Against Property Details:

Maximum Amount Rs. 10 Crores or Up to 50% on the value of the property
Interest Rate 9.65% p.a
Processing Fee 1% of loan amount with a minimum of Rs.5000/- and a maximum of Rs. 50,000/-
Prepayment Charges NIL
Documentation Charges Rs.100/- Per Lac or part thereof with a minimum of Rs.1000/- and Maximum Rs. 25000/-
Repayment Period Demand loan – 3 years
Term loan – 7 years (up to 84 EMIs)
Overdraft facility – 1year (renewable on yearly basis)
Repayment Capacity Net Take Home requirement is Rs. 20,000/- p.m whichever is higher after meeting EMIs of proposed loan

Canara Bank Loan Against Property Eligibility Criteria

  • Salaried Individuals
  • Traders
  • Businessmen
  • Professionals
  • Self-employed individuals
  • Firms- Proprietary or Partnership
  • Companies (excluding NBFCs)
  • Minimum age group of 18-60 years are eligible
  • NRIs with a known and regular source of income
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Documents Required for Canara Bank Loan Against Property

To avail Canara bank mortgage loan, the documents that you need to have are as follows:

  • Canara bank mortgage loan application form
  • 2 Passport size photographs
  • Income proof
  • Income Tax Assessment Order/IT Returns
  • Salary slip of last 2 years (for salaried individuals)
  • Approved plan of buying property

How to Apply for Canara Bank Loan Against Property

The process of applying for Canara bank loan against property is very simple. All you have to do is submit the filled in application form with the required documents and submit it online or to the nearest Canara bank branch.

Canara Bank Mortgage Loan Calculator

The interest rate for Canara bank loan against property is 9.65% p.a with the tenure period of 7 years. With the EMI calculator, you can calculate how much you need to pay every month against the loan amount. For eg., if you are taking a mortgage loan of Rs. 10 lacs at the rate of interest of 9.65% for the tenure period of 7 years, the EMI per month will be Rs. 16,421. The below-given table shows the EMI, total interest amount, and total amount you will have to pay are as shown in the table:

Table for EMI per month, Total Interest Outgo and Total Amount

Amount Rate of Interest Loan Tenure EMI Total Interest Amount Total Amount (Principal + Interest)
Rs. 10,00,000 9.65% 1 year Rs. 87,753 Rs. 53,038 Rs. 10,53,038
Rs. 10,00,000 9.65% 2 years Rs. 45,984 Rs. 1,03,605 Rs. 11,03,605
Rs. 10,00,000 9.65% 3 years Rs. 32,103 Rs. 1,55,712 Rs. 11,55,712
Rs. 10,00,000 9.65% 4 years Rs. 25,195 Rs. 2,09,352 Rs. 12,09,352
Rs. 10,00,000 9.65% 5 years Rs. 21,075 Rs. 2,64,514 Rs. 12,64,514
Rs. 10,00,000 9.65% 6 years Rs. 18,350 Rs. 3,21,187 Rs. 13,21,187
Rs. 10,00,000 9.65%  7 years Rs. 16,421 Rs. 3,79,356 Rs. 13,79,356
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Amortization Table

Year Principal Interest Balance Amount
1Rs. 105,122 Rs. 91,930 Rs. 894,878
2Rs. 115,727 Rs. 81,325 Rs. 779,151
3Rs. 127,399 Rs. 69,653 Rs. 651,752
4Rs. 140,256 Rs. 56,796 Rs. 511,496
5Rs. 154,403 Rs. 42,649 Rs. 357,093
6Rs. 169,978 Rs. 27,074 Rs. 187,115
7Rs. 187,246 Rs. 9,925 Rs. 0

Canara Bank Overdraft Facility

Overdraft facility of Canara Bank is sanctioned for 12 months and is renewable every year subject to Satisfactory operations and conduct.

Features & Benefits of Canara Bank Mortgage Loan

  • Low Rate of Interest
  • No prepayment charges
  • High loan amount up to Rs. 10 Crores
  • Minimum processing fee, 1%
  • Longer tenure period of 7 years
  • Multi-purpose loan
  • Overdraft facility of 1 year renewable on annual basis