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    Canara Bank Plot Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    9.55% - 9.65% Fixed
    1,500 to ₹10,000
    Max 4 years salary
    30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Eligibility Criteria
    Home Loan BYTES FROM OUR KITCHEN

    Canara Bank Plot Loan

    Overview:

    Putting your hard earned money into buying a property is one of the wisest investments we can make. For most of us, it all begins with buying a piece of land either with a view to build a house at a later time or holding it as an investment apparatus. For some, buying a site can also be a second property investment after owning a house. Whatever the reason may be, real estate is evergreen and reaps long term monetary benefits.

    As a trusted public sector bank in India, Canara bank offers a loans for a variety of housing needs which includes financial assistance for purchasing plots. The Canara site loan is the exclusive scheme which provides loan with pleasing features coupled with competitive interest rates. It offers loans to individuals looking forward to purchasing sites developed and promoted by state/town planning authorities, plots promoted by central and state government in association with private companies or offered exclusively. Layouts approved and developed by government agencies are also included.

    In addition to the above, Canara Bank also encourages site loan borrowers to apply for a construction loan when they decide to build a structure on the vacant plot.

    Features of Canara Bank Site Loan:

    Available to all:

    The bank offers finance for both existing and new customers with a sound financial background. NRIs looking at buying a plot can also make an application under this scheme.

    High loan quantum:

    It offers a loan of up to Rs.15 lacs for plots located in six metros of Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Secunderabad and Bangalore. For all other locations which includes non-metro centres, one can avail a loan of up to Rs.10 lacs under this scheme.

    Low margin for borrowers :

    If you’ve limited monetary resources, this can be the ideal loan for you since the burden is minimal. Your share in the overall costs of the plot is limited to 20% of the project, making it an affordable loan instrument with least burden on your budget.

    Pleasing repayment term option:

    The bank offers you the flexibility to choose a term of your choice to repay the borrowed amount. The repayment can be done in EMIs (Equated monthly installment) of up to 5 years, depending on your financial convenience.

    Minimal security :

    The housing site in question is mortgaged until full repayment of the loan and hence, there is no requirement of co-obligation or security in any other form. This feature ensure little hassle for you as you don’t have to run around looking for a financially sound person who can sign up as a guarantor.

    Affordable rates and charges:

    This loan is offered at a rate derived on the basis of base rate+6.25 percent. The present base rate is 9.65%, subject to change at regular intervals on the basis of periodic monetary review. The processing fee is capped at just 0.5% of the proposed loan amount. The minimum processing fee applicable is Rs.1,500 with a cap of Rs.10,000, making it one of the most competitive offers in this category.

    Eligibility Criteria for Canara Bank Plot Loans:

    • The age of applicant should be less than 55 years at the time of application.
    • Salaried applicants should be on permanent rolls of the company and the lower limit of net salary should be 40% after taking into account, the EMI of the proposed loan.
    • Self employed applicants should be running a successful business in operations for at least 3 years. They should have an annual income of at least 1 lac, supported by the latest ITR.

    Documents Required for Canara Bank Land Loan:

    • Application form accompanied by 2 passport size photographs.
    • Site/layout plan issued by the relevant authority/developer.
    • Last 6 month's payslips along with latest Form 16.
    • Self employed applicants should produce the latest ITR.
    • Legal scrutiny report issued by the bank’s legal division.
    • Allotment letter or any other supporting document confirming the allotment of the site.

    Canara Bank Land Loan Frequently Asked Questions:

    1. Can I convert this loan into a housing loan at a later time?

      Yes, this Canara site loan can be converted into a housing loan if you decide to get the construction financed. Once the housing loan is approved, the outstanding amount from the site loan will be transferred to the new loan account.

    2. Does Canara bank provide repayment holiday under the site loan scheme?

      The repayment of the borrowed amount will commence a month after the loan amount is disbursed. No repayment holiday is offered. In cases where payment is made in parts, the repayment will commence after 3 months from the date of disbursement of the loan.

    3. Please provide the details of documentation charge applicable for the Canara site loan.

      Documentation charges payable are charged at the rate of Rs.100 per lac of the disbursed loan amount. It is subject to a minimum of Rs.1,000 with an upper cap of Rs.25,000.

    4. As an applicant, am I required to provide a guarantee to secure the loan amount?

      There is requirement for personal guarantee. The site remains mortgaged until full repayment of the loan and acts as collateral.

    5. What is the maximum term provided for repayment?

      Canara bank provides a maximum repayment period of up to 5 years. You’re free to choose a term of your choice.

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