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
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
What are the purposes for which
housing loan is sanctioned?
- For purchase of ready built
house / flat
- For construction of house /
- 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. 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.
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 &
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?
New House / Flat
Old House / Flat
Upto Rs.20 lakhs
Above Rs.20 lakhs and upto Rs.75 lakhs
Above Rs.75 lakhs
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
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
Prepayment penalty is waived in
respect of housing loans carrying floating rates of interest.
What is the rate of interest on
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.75.00 lakhs are sanctioned at 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
Yes. 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
- Original Stamp Duty
Receipts, if any.
- Original receipts issued by
the builder in favour of the Purchaser of
- Certified copy of the
- 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
- 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
- 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
- Share Certificate
- Title Certificate.
- Building completion and
occupation certificate (in the case of ready built flat).
- Photo copy of the N.A
- Approved Plan.
- 7x12 Extract copy / Index
II copy / Property RegisterÂ card extract.
- Building Commencement
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.1500/- 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
Whether housing loan borrowers
are entitled for free credit card facility?
Yes; borrowers have the option
to choose either VISA or Master Card.