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  • Canara Bank Home Improvement Loan

    You can avail the Canara Bank Home Improvement Loan to purchase household furniture, fans, refrigerator etc. The processing fee charged is 0.5% of the loan amount and the current interest rate charged is 11.10% p.a.
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    You can avail the Canara Bank Home Improvement Loan to purchase household furniture, fans, refrigerator, air conditioners, etc. The processing fee charged is 0.5% of the loan amount and the current interest rate charged is 11.10% p.a.

    Interest Rates

    Home Improvement Loan One-year MCLR + 2.45% 11.10% p.a.

    Charges & Fees

    Particulars Charges
    Processing Charges 0.50% of the loan amount (min. Rs.1,500 and max. Rs.10,000)
    Documentation Charges Rs.100 per lakh (min. Rs.1,000)
    Inspection Charges Rs.200 per inspection (max. Rs.600 per year)

    Note: Fees and charges are subject to change as per the bank’s discretion.

    Other Charges

    All other charges such as outsourcing, CIBIL, CERSAI, insurance premium, LSR (Loan to Security Ratio), valuation, etc., are to be borne by the borrower.

    Canara Bank Home Improvement Loan Amount and Margin

    • When availed with the Canara Bank Housing Loan, the loan amount for home improvement is up to 1-year's gross salary/income over and above the eligible amount for home loans.
    • In other cases, 1-year’s gross income/salary will be assessed to arrive at the loan amount.
    • The maximum loan amount under this scheme is Rs.2 lakh; however, a higher amount will be considered on case-to-case basis.
    • If you avail this scheme along with the regular housing finance from Canara Bank, the margin is the same as the margin specified for the home loan. However, in other cases, the margin is 20%.

    Eligibility Criteria

    The bank offers home improvement/renovation loans to owners of a house/flat who are salaried or self-employed individuals. Non-Resident Indians (NRIs) are also eligible for the Canara Bank Home Improvement Loans. There are certain criteria you need to meet when looking to avail a home improvement loan from Canara Bank. They are:

    Salaried Should have a minimum monthly net income of 25% of your gross salary or Rs.2,000 post meeting the instalment of the proposed loan. Also, you should be confirmed with a minimum service of 3 years.
    Non-Salaried/Professionals Should have a minimum annual income of Rs.50,000 as per Income Tax assessment return/order. Also, you should have been in the profession/business for at least 3 years.
    Age Criteria Should be 18 to 55 years of age; however, the bank can relax the upper age limit subject to certain terms and conditions. The entire loan, however, should be repaid before attaining the age of 70.

    Documents Required

    To avail the Canara Bank home improvement loan, below is the list of documents required:

    • Loan application.
    • 2 passport size photographs.
    • Latest salary certificate and Form 16.
    • IT returns/ITAO for non-salaried and professionals.
    • Proforma invoices, cost estimates.

    FAQ’s

    1. What is the maximum loan amount under the home improvement scheme?

    The loan amount that can be availed against the home improvement loan is 1-year's gross salary/income, subject to a maximum of Rs.2 lakh; however, the bank can increase the loan quantum to up to Rs.5 lakh on case-to-case basis.

    2. What is the repayment period under this scheme?

    The repayment period is 5 years, which can be increased to 7 years in select cases.

    3. What is the security required by the bank for the home improvement loan?

    The security required by the bank towards this loan scheme is the hypothecation of assets purchased/created through this loan or the mortgage of house/flat in case availed jointly with the home loan. In case it is availed independently, then the mortgage of the property or another suitable collateral to be provided.

    4. Do I need to provide any guarantee to avail this loan?

    You must provide co-obligation/personal guarantee to avail the loan and it must be acceptable to the bank.

    5. How will Canara Bank disburse the home improvement loan?

    The bank will disburse the amount only after acquiring ready built flat/house or completion of the construction of the house/flat or completion of renovations/repairs, etc., if the loan is availed along with the regular home loan. In case the loan is availed as an independent loan of a home loan, then the loan can be disbursed against proforma invoice, etc.

      

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