Who can avail housing loan?
Following categories of individuals, in the age group of 18 to 55 years, including Non Resident Indians (NRIs) are eligible for housing loans:
a. Salaried individuals confirmed in the service with minimum service of 3 years.
b. Individuals engaged in business & self-employed persons like, doctors, chartered accountants,architects and others.
Eligibility relating to upper age limit is relaxed selectively, subject to certain conditions.However, entire loan should be cleared before the borrower attains the age of 70 years.
What are the purposes for which housing loan is sanctioned?
- For purchase of ready built house / flat
- For construction of house / flat
- For purchase of site and construction of a house thereon
- For undertaking expansion of existing unit, upgradation and creation of additional amenities
- For undertaking repairs and renovations, subject to ceiling of Rs.15.00 lakhs
Whether Housing Loan is sanctioned for purchase of site only?
No.Â Housing loan is not sanctioned for purchase of site only.
What the quantum of loan?
If you are a salaried individual, maximum loan shall be limited to four years’ gross salary, subject to minimum Net Take Home Salary (NTH) of 40% after deduction of instalment (EMI) towards the proposed loan.Selectively NTH stipulation may be reduced to 25% of gross salary.
If you are a non-salaried individual, maximum loan quantum shall be limited to four times gross annual income of the concluded financial year, during which housing loan is sought to be availed OR four times of average gross annual income of all the four years.
If you are an NRI, maximum loan amount is restricted to two years’ salary / annual income.
However, in all the above cases, higher quantum is considered selectively, subject to certain conditions.
Whether income of the family is reckoned for arriving at loan quantum?
In the case of salaried individuals/businessmen/self-employed persons, the income of the family may be taken into account, subject to documentary evidence, for the purpose of computing the quantum of eligible amount of loan.
Whether income of the spouse can be taken to determine repayment capacity?
Where family income includes the income of the applicant and the spouse, the spouse’s income is reckoned to determine the repayment capacity and compliance of NTH stipulation, provided such spouse joins execution of loan documents either as a co-obligant or as a guarantor.
What is the maximum eligible quantum of loan for repairs and renovations?
Maximum eligible quantum of housing loan is Rs.15.00 lakhs for repairs & renovations.
Whether agricultural income is considered for arriving at loan quantum?
Agricultural income is considered if it is supported by land records and income is reported in Income Tax Return, though not taxed.
What is the margin required to be borne by the applicant?
Nature of House
For loans upto Rs.20.00 lakhs
For loans above Rs.20.00 lakhs
New house/flat including purchase of site and construction thereon
However, margin to acquire second house/flat, both new and old house, the margin shall be 25% on project cost irrespective of the loan amount.
How is the margin computed?
The margin is computed on the basic project cost which shall not include expenses incurred towards stamp duty, registration and other documentation charges).
When is the margin required to be brought in?
Margin should be contributed before disbursement of the loan. However, pro-rata and stage-wise contribution of margin is selectively permitted.
Whether and to what extent reimbursement of amount spent on housing project is permitted?
Upto 25% of loan amount is permitted to be reimbursed, subject to production of vouchers / receipts / related documents and claim being made within 3 months from date of incurring expenditure.
Where housing loan is sanctioned for purchase of site and construction of house thereon, what is the maximum period within witch construction of the house should start?
Construction of the house should commence within a maximum period of 12 months from the date of disbursement.
What is the penalty for not commencing construction of the house within the stipulated period?
Higher rate of interest is charged (Base Rate + 6%) from date of disbursement till date of commencement of construction.
Whether pre-payment penalty is charged:
Prepayment penalty is waived in respect of housing loans carrying floating rates of interest.
What is the rate of interest on housing loans:
Presently, as housing loans are not sanctioned on fixed rates of interest they carry only floating rate of interest which is linked to Base Rate of the Bank.
Irrespective of the repayment tenor, housing loans upto Rs.30.00 lakhs are sanctioned at Base Rate whereas loans above Rs.30.00 lakhs and upto Rs.75.00 lakhs are sanctioned at 0.05% above Base Rate and loans above Rs.75.00 lakhs are sanctioned at 0.25% above the Base Rate.
Whether additional interest is charged on for purchase of second dwelling unit?
No; charging of additional interest is withdrawn.
Whether housing loan is provided for purchase of third and subsequent dwelling units?
Yes; these loans are sanctioned under Housing Loansâ€“Non-Priority-Commercial Real Estate.Such loans are charged 1.00% interest over and above regular housing loans.
Can I submit online application for housing loan?
Yes; For submitting online loan application, you have to log on to www.canarabank.com;You can also track the status of your loan application through our website.
What are the repayment terms?
Entire loan together with interest (including repayment holiday if any),shall be repaid in within a maximum period of 30 years from the date of disbursement or the borrower attaining the age of 70 years whichever is earlier.Repayment period as above is permitted taking into account the earning / repaying capacity of the borrower and subject to legal heir/s joining as co-borrower / guarantor.
Can I avail the benefit of step-up instalments?
Yes.Â For details, please contact the nearest branch
What are the documents required to be produced?
- Documentary proof regarding incomeâ€“salary certificate in case of salaried persons and Income Tax return / assessment orders or other documentary evidence in the case of individuals engaged in business / self-employed persons and others.
- Agricultural income is permitted to be added for determining higher eligibility, provided such income is reported in IT Return and relevant land records are produced for verification.
- In the case of business income, Balance Sheet and other financial statements may be produced along with ITR / ITAO.
- Approved plan and estimate.
- Legal Scrutiny Report from Bank’s panel advocate along with documents as indicated therein.
- Valuation Certificate from the approved valuer wherever applicable (in the cases of purchase of ready built house/flat).
- Copy of the passport and employment certificate / work permit (in the case of NRIs).
In case of purchase of flat, what are the documents to be produced:
- Original Sale Deed executed by the Builder in favour of the Purchaser.
- If the original sale deed is not returned by the office of the Sub-Registrar, a certified copy of the same may be accepted.(Duly certified by the Sub-Registrar as “True Copy”).
- Original Registration Receipts.
- Original Stamp Duty Receipts, if any.
- Original receipts issued by the builder in favour of the Purchaser of the Flat.
- Certified copy of the approved plan.
- Certified copy of the Building commencement certificate.
- Title certificate issued by the Solicitor / Panel Advocate.
- NOC from the Builder.
- Confirmation of the lien from the Builder.
- Architect’s certificate regarding the stage of construction.
- Builder’s Demand Notice.
- N A Order.
- U L C Order.
- 7 x 12 extract / Index II Copy / property Register card extract.
- Photographs showing the stages of construction.
In case of allotment of a plot by the Society, following documents are required:
- Deed of conveyance of land (original).
- If the conveyance Deed is not returned by the office of the Sub-Registrar- certified true copy of the Deed of Conveyance (certified by Registrar).
- Original Receipt issued by Registrar.
- Letter of authority acknowledged by Sub-Registrar to collect conveyance deed.
- NOC from the Society.
- Extract of the Resolution.
- Bye laws of the Society.
- Payment receipts (original).
- Share Certificate (original).
- Title Certificate.
- Building completion and occupation certificate (in the case of ready built flat).
- Photo copy of the N.A Order.
- Approved Plan.
- 7x12 Extract copy / Index II copy / Property RegisterÂ card extract.
- Building Commencement Certificate.
What are the additional documents to be submitted by an NRI borrower?
- Employment contract.
- Latest salary slip for at least past six months.
- Latest work permit.
- Visa stamped on the passport.
- Identity card issued by the employer.
- Bio-data covering educational qualification, age etc (proof of age to be supported by school certificate / LIC policy etc.)
- NRE SB pass book, for verification (if account maintained with other Banks).
- Registered Power of Attorney if any in favour of representatives in India.
- Copy of Passport.
What are the processing charges for housing loans?
Processing charges in the form of upfront fee shall be collected as a one time measure at the time of submitting the application.Â The processing charges payable is 0.5% of the loan amount subject to a minimum of Rs.500/- and maximum of Rs.10,000/- (subject to change from time to time).
What are the other charges to be borne by the borrower?
All out-of-pocket expenses like, outsourcing charges, periodical inspection charges, inspection charges, insurance premia etc need to be borne by the borrower.
Whether housing loan borrowers are entitled for free credit card facility?
Yes; borrowers have the option to choose either VISA or Master Card.