Who can avail Housing Loan from us?
Any Individual/s – either salaried (including NRIs) or engaged in business/self employment.

Is there an age limit for availing the loan:
Yes. The applicant should not be above 55 years of age. In case of borrowers opting for repayment of above 15 years, the entire loan should be cleared before the borrower attaining 70 years of age. However, exceptions can be considered selectively based on merits.

What are the purposes for which housing loan can be availed?

• For construction of house.
  
  
• For purchase of house/ flat.
  
  
• For additional constructions to the existing house.
  
  
• For carrying out repairs/renovations/alteration to the existing house.
  
  
• For takeover of existing housing loan liability from other bank/HFI.

What is the amount of loan one can avail?
In case of new house/flat, 80 % of the cost of project. In case of repairs / renovation / alterations maximum loan permissible is Rs.7.50 lacs. Selectively upto Rs. 15 lacs in 6 Metro Centres Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai.

What are the components of project cost?
Cost of house/flat proposed to be purchased or cost of construction alongwith stamp duty & registration charges and insurance premium can be included in the project cost.

Whether housing loan can be availed for purchase of plot alone?
No. Though cost of plot can be included in the project cost where construction of house is proposed, the loan cannot be availed for purchase of plot alone.

What is the quantum of loan I am eligible for?
Loan quantum shall be arrived at as under:

1. Salaried individuals – 48 months gross salary
   
   
2. Business/Self employed persons – 4 times of annual gross income
   
   
3. Non Resident Indians – 2 times of gross annual income/salary.
   
   

Selectively higher quantum of loan can be considered.

Loan quantum shall also depend on repayment capacity.

Whether rent receivable is taken into account for arriving at loan amount?

• The anticipated rental income from the property for which the housing loan is sought cannot be taken into account.
  
  
• However rental income from any other existing property of the applicant can be taken into account provided the amount declared in the IT Return.

Whether additional loan is sanctioned for furnishing the house?
Yes. Additional loan to the extent of 1 year gross income with a maximum of Rs.2.00 lacs in addition to housing loan can be availed as HOME IMPROVEMENT loan at the same rate of interest as that of housing loan.

Whether the loan can be availed jointly with spouse? Whether the income of both will be taken into account for arriving at loan quantum?
Income of spouse can be clubbed for arriving at the eligible loan quantum and repayment capacity in case the spouse is a joint borrower.

Where and how can I avail Housing loans?

–  Retail Hubs i.e. Central Processing Unit.

–  Through a wide network of branches across the country.

How long does it take to get my loan sanctioned?
We assure sanction of the loan within one week of submission of all the required documents.

What will be the rate of interest?


Note:

a. Fixed rates are not permitted at present.

b. For persons availing loan for 2nd or subsequent house, 0.25 % extra rate of interest will be levied.

What is the repayment period of the loan?
Loan together with interest can be repaid in EMIs within a maximum period of 25 years, or before the borrower attaining the age of 70 years.

Flexible repayment tenor like Step up EMI is also permitted.

In case of construction of house or flat maximum repayment holiday of 18 months is permitted.

What is NTH (Net take home income/salary)?
NTH denotes the amount of income/salary available for sustenance – i.e. gross income/salary minus other deductions and EMI for the housing loan.

NTH should be 40 % of the gross salary.

What is EMI?
EMI stands for Equated Monthly Installments. EMI comprises both principal and interest components. You can choose the repayment tenor, which is best suited to your repayment capacity.

What is Step up/Step down EMI?
Step UP EMI means EMI stipulated taking into account the anticipated increase in income over a period of time. Effectively it means you pay lesser EMI initially which will gradually increase as your income increases.

Step down EMI – If bulk payments are made during the currency of the loan, EMI can be reworked for the remaining liability retaining the same tenor.

Whether interest applicable is flat rate or at reducing balance?
Interest is charged on daily reducing balance.

What is the advantage of calculating interest on daily reducing balance?
In the annual reducing balance method employed by some of the banks, interest is calculated on the balance outstanding at the commencement of the year. Thus even though you have paid your EMIs regularly you end up paying interest on a higher balance.

In the case of the daily reducing balance the interest is calculated only on the outstanding loan amount, which reduces every month as you pay your EMI. This effectively amounts to lower rate of interest.

What is the security required by the bank for housing loans?

1. Mortgage of property for which the loan is availed.
   
   
2. In case of purchase of flats where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the developer, borrower and the Bank.
   
   
3. Suitable third party guarantee acceptable to the Bank.
   
   

Whether valuation of the property is a must?

• Valuation of the property is required only in the case of purchase of ready built house/flat, purchase of land on which house is proposed to be constructed and takeover of liability from other banks/HFIs.
  
  
• However in case of purchase of site/house/flat directly from Government authorities, valuation of property is not required.
  
  

What are the processing fees charged by the bank?
Nominal processing fee of 0.50% (Max. Rs.10,000/-) is charged. At present 50 % of the applicable processing charges is waived upto 31.3.2008.

Can I prepay the loan or remit amounts more than the EMI? Are there any penalties?
Yes, the loan can be prepaid at any moment. Further you can remit any amount over and above the stipulated EMI in case you have surplus funds, as it will bring down your interest burden. No penalty is levied for prepayment/extra payment.
However closure of loan by takeover of the loan by another banks/HFI attracts a penalty of 2 % on the outstanding loan amount.

What are the tax benefits available for housing loans?

• Under Section 24(1), interest repayment of Rs.1,50,000/- per annum qualifies for tax savings.
  
  
• Under Section 80(c) on repayment of principal amount to the extent of Rs.1,00,000/- is also available.
  
  

When can I take the IT certificate from the Bank?
IT certificate can be taken after the end of a financial year i.e. in April or May for the previous financial year.
However you can take a provisional Certificate to avail the IT benefits during the current financial year.

What are special features of housing loan of CANARA BANK?

1. Speedy processing through retail hubs, Central processing units.
   
   
2. Simple and hassle free documentation.
   
   
3. Wide network of branches to choose from.
   
   
4. Flexible repayment tenors.
   
   
5. No prepayment penalty except in case of takeover of loan by other banks.
   
   
6. Nominal processing charges and no HIDDEN charges.