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  • Canara Bank Home Loan Plus

    The Canara Home Loan Plus is an additional home loan that you can apply for if you already have a housing loan from Canara Bank. You can apply for this loan as a term loan or an overdraft and use the amount for any purpose other than speculative reasons. The interest rates on loan starts from 8.90% p.a. with a processing of 0.50% of the loan amount.

    Interest Rates

    The interest rate offered on this loan depends on the type of loan – term loan or overdraft. The bank offers a floating rate structure on this home loan with the interest rate pegged to the bank’s 1-year MCLR (Marginal Cost of Funds based Lending Rate). The current 1-year MCLR is 8.40%.

    The interest rate on the Canara Home Loan Plus Term Loan is 8.90% p.a. and on the Canara Home Loan Plus Over Draft is 9.40% p.a.

    Features and Benefits

    If you are interested in applying for this housing loan from Canara Bank, here are the features and benefits that you are offered:

    • You can apply for this loan as a term loan or overdraft. However, if your existing Canara Bank Home Loan only has a remaining tenure of 5 years, then you will only be eligible for a term loan.
    • Maximum loan amount – Rs.25 lakh for all applicants. Your combined liability towards your home loan and this proposed loan should not exceed 75% of your property value at the time your first loan was sanctioned.
    • There is no margin for this loan.
    • The same property that you mortgaged to the bank when you applied for your housing loan will continue to serve as security for this loan as well.

    Repayment Periods

    Your maximum repayment period will differ based on the type of loan you choose:

    Term Loan – maximum repayment period:

    • The remaining tenure on your existing housing loan or 120 EMIs, lower of the two.
    • The loan to be cleared before you turn 70 years old.

    Overdraft – maximum repayment period:

    • Maximum of 3 years with half-yearly reviews.
    • If the remaining tenure on your existing housing loan is less than 5 years, your overdraft loan will be converted to a term loan.

    Eligibility Criteria

    If you wish to apply for this housing loan from Canara Bank, here are the criteria you need to meet:

    1. Age:
      • Minimum - 21 years.
      • Maximum - 65 years.
    2. You must have a satisfactory repayment track record for the past 1 year.
    3. Salaried employees:
      • You are eligible for a loan amount of 10 months’ gross salary.
      • Your Net Take Home (NTH) salary should not be below 40% after deducting the EMI towards your existing housing loan and the proposed loan.
      • On a selection basis, the NTH stipulation may be reduced to 25% by the bank.
    4. Non-salaried employees:
      • You are eligible for a maximum loan amount of 75% of 3 years’ average gross income.

    Frequently Asked Questions

    1. What can I use the Canara Home Plus loan for?

      You can use the loan amount for any personal reasons such as medical expenses, paying for your children’s education, emergency situations, etc. except for speculative reasons.

    2. How is the processing fee calculated on this home loan?

      You will be charged a processing fee of 0.50% of the loan amount, with a minimum fee of Rs.100 and a maximum fee of Rs.500.

    3. How is the interest rate calculated on this Canara Bank housing loan?

      The bank offers floating rates on this housing loan pegged to the bank’s 1-year MCLR which is currently 8.40%.

      If you apply for the term loan, then you will be charged 1-year MCLR + 0.50%, i.e. 8.40% + 0.50% = 8.90% p.a.

      If you apply for the overdraft, then you will be charged 1-year MCLR + 0.50%, i.e. 8.40% + 1% = 9.40% p.a.

    4. Can I apply for this loan if I am not a Canara Bank existing home loan borrower?

      No. This housing loan is exclusively offered to existing housing loan borrowers of Canara Bank.

    5. If I foreclose my housing loan, can I continue paying my EMIs for the Canara Home Loan Plus?

      No. If you wish to pre-close your housing loan, the Canara Home Loan Plus Term Loan/Overdraft will first be foreclosed.

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