Canara Bank or Dewan Housing Finance Limited of is one of the leading home loan providers in India. Home loans are opted by almost everyone in today’s world. The Canara bank home loans come with great benefits and features. They are designed to meet the changing needs and requirements of the customers.
|Age||Less than 60 years|
|Maximum Loan Amount||Salaried - 72 months' salary of the concluded financial year
Non-salaried - 6 times of the annual income
|Equated Monthly Instalment/lakh||Rs.662|
|Interest Rate linked to RLLR||6.95% - 8.90% p.a.|
The age of the applicants plays a very important role in the determination of eligibility towards a home loan and the repayment capability for the loan. Lower the applicant’s age, higher is the tenure available for the repayment of the loan amount. In order to be eligible for a home loan offered by Canara Bank, the applicant must be at least 21 years old at the time of commencement of the loan. Canara Bank Housing Finance provides home loans for a maximum tenure of 30 years for both self-employed applicants and salaried applicants. The maximum loan tenure that can be availed by an applicant is mentioned below:
|Present age||Maximum loan tenure for self-employed applicants||Maximum loan tenure for salaried applicants|
|50 years||15 years||10 years|
|45 years||20 years||15 years|
|40 years||25 years||20 years|
|35 years||30 years||25 years|
|30 years||30 years||30 years|
|25 years||30 years||30 years|
The entire value of the property is not financed by the home loan provider. Canara Bank Housing Finance will offer a certain percentage of the total property value as the home loan. The maximum home loan eligibility will be dependent upon the property value shown in the table below:
|Value of property||LTV|
|Above Rs.75 lakh||75%|
|Between Rs.30 lakh and Rs.75 lakh||80%|
|Less than Rs.30 lakh||90%|
If a co-applicant is added, it boosts the primary applicant’s home loan eligibility. This happens as adding a co-applicant increases the repayment capability of the primary applicant. The co-applicant must have a clean CIBIL record, low obligation and good income.
All the documents associated with the property being purchased must be satisfactory and passed by the legal team of the bank.
The net monthly income is also very important in the determination of home loan eligibility. It states how much home loan an applicant is capable of paying after taking care of other daily expenses depending on the applicant’s standard of living. For example, if the applicant’s net income per month stands at Rs.70,000, the value of the house being purchased costs Rs.50 lakh and the rate of interest stands at 8.35%, then the maximum loan amount that can be availed by the home loan applicant is going to be as follows:
|Age||Monthly income (Net)|
The applicant may choose to repay the loans with high EMI and short tenure in order to boost the Canara Bank home loan eligibility.
The credit behaviour of the home loan applicant and track record from the past credit card providers and lenders gets recorded in the CIBIL score. Banks and other lenders consider this report while determining the applicant’s creditworthiness. Thus, CIBIL score is extremely important in defining the applicant’s eligibility for a Canara Bank home loan. If the applicant has a high credit score, it automatically implies that the credit behaviour of the applicant has been really good. The chances of the home loan application getting approved is also very high in such cases. However, a low CIBIL score will bring down the eligibility factor of the applicant.
Some of the factors that affect the applicant’s credit score are mentioned below:
Fixed Obligation to Income Ratio or FIOR is extremely important when it comes to determining the Canara Bank home loan eligibility. The lender takes all the fixed obligations of the applicant into account while defining the eligibility of the applicant. The minimum FIOR needed to be eligible for a Canara Bank home loan stands at 0.65. The home loan calculator can be used to calculate the home loan eligibility.
The APR calculator on the Canara Bank's website can be useful in determining indicative rates for the home loan. An individual can use the calculator to check the tentative EMIs based on total loan amount, the rate of interest, and tenure of the loan.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.