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  • Canara Bank NRI Home Loan

    Canara Bank offers all kinds of banking and financial services including Home Loans. The Home Loan Schemes extended to NRI quota is designed to accommodate the special needs of customers who are in the NRI category.

    Canara Bank NRI Home Loan Interest Rate:

    The interest rate for Canara Bank’s NRI home loan is linked to the Repo Linked Lending Rate (RLLR) which is 6.90% with effect from June 7, 2020. The rate of interest is also influenced by the credit risk premium over the RLLR. For women borrowers, the rate of interest ranges from 6.90% p.a. to 8.85% p.a. For all other borrowers, the rate of interest ranges from 6.95% p.a. to 8.90% p.a.

    For the third and subsequent dwelling units, the applicable interest rate shall be 0.50% plus the rates given above.

    Other Fee and Charges:

    • Processing Charges: 0.1% of loan amount (Minimum Rs. 500/- and maximum Rs.10000/-)
    • Inspection Charges: If the loan is up to the amount of Rs. 10.00 Lacs: Rs. 200/- per inspection (maximum Rs. 600/- per year)
    • If the loan amount is above Rs. 10 Lacs: Rs. 300/- per inspection or actual expenses that have been incurred, whichever is higher.
    • Out of pocket expenses such as CIBIL Charges, Outsourcing Charges, CERSAI Charges, LSR Charges, Insurance premia, Valuation Charges etc. must be borne by the borrower.

    Home Loans for NRI from Canara Bank:

    There is a special category of Home Loans that is extended towards NRIs who are looking for:

    • Construction of a flat/house
    • Undertaking renovation, repairs, creation of additional amenities, upgradation etc. This is subject to the Bank’s satisfaction and up to the amount of Rs.15 lakhs
    • Purchasing a site and construction of a house on it. However, it is to be noted that you may not get a loan for only the purchase of the site.
    • Purchase of a flat/house that is already built.
    • For taking over of the Home Loan liability from other Pvt. Sector Banks/ Public Sector Banks/NBFCs rated externally as ‘A’ and above.
    • For purchasing a second flat/house if the borrower already owns a flat/house with or without a loan

    Canara Bank NRI Home Loan Eligibility:

    • Applicants must be between the ages of 21 and 60 years.
    • All Nonresident Indians who hold a valid Indian passport as well as persons of Indian origin (PIO) who hold a foreign passport.
    • Applicants must have a valid job contract/work permit showing that they have a steady income source as well proof that they have been employed abroad for a minimum of 2 years
    • Close relatives/spouses of NRIs who are residing in India can join an NRI in a Joint application.
    • Applicant must have NRI status of at least 3 years

    Features of Canara Bank NRI Home Loan:

    Loan Amount:

    After proposed EMI and margin requirements, the maximum loan amount you can take out is four times your annual gross income with NTH of 40%

    Margin:
    Loan Amount Old House / Flat New House / Flat
      Upto 10 years old More than 10 years old  
    Upto Rs. 20.00 Lacs 20% 25% 10%
    Above Rs. 20.00 Lacs &
    upto Rs.75.00 Lacs
    20% 25% 20%
    Above Rs. 75.00 Lacs 25% 25% 25%

    A uniform margin of 25% will apply in cases of Renovations & Repairs, Upgradation, and Expansion of existing unit as well as creation of additional amenities. Margin will be 25% for second/subsequent house as well.

    Repayment:
    • Repayment can be done within a maximum of 30 years, or by the time the borrower turns 60 years (whichever is earlier). Repayment can be done by:
    • Remittances from abroad through normal banking channels.
    • EMIs.
    • Funds transfer from FCNR/ NRE accounts.
    • Close relatives can repay with remittance from local funds.
    Repayment holiday/ Moratorium period:

    The repayment holiday will be between two and 18 months. It will depend on the purpose of the loan. The following table illustrates this:

    Scenarios Repayment Holiday
    If the loan is taken for construction of house, where the land is already owned by the borrower Maximum 18 months
    If the loan is taken for the purchase of old house and for finishing / semi-finished house / repair of the house /modification Maximum 12 months
    If the loan is taken for purchase of flat/house that is already built and ready or for takeover of liability from other FIs. Maximum 2 months
    Security:
    • As security, applicants can provide equitable mortgage by depositing title deeds or registered mortgage where necessary.
    • The guarantee of an Indian resident who that bank thinks is acceptable.
    Document Execution:

    Power of Attorney of NRI customers can be given to someone in India according to the specified format and stamped as per the law.

      

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