Canara Housing Cum Solar Loan

The Canara Housing cum Solar Loan is a home loan offered by Canara Bank for the installation of rooftop solar panels (photovoltaic system) on a house.This loan can be combined with a Canara Bank house loan. You can also use it to install solar panels on your roof without having to take out a home loan. The loan gives concession to women borrowers and has a repayment period of up to 20 years.

Interest Rates

The interest rates on this loan range from 6.90% to 8.90% p.a., depending on the quantum of loan as well as the applicant’s employment status. In the case of salaried applicants, the interest rate is at 8.40%. For other applicants, interest rates range from 8.45% to 8.65% p.a.

Features and Benefits

If you’re considering applying for this Canara Bank loan, here are some of the features and benefits you will be offered:

• You can apply for this loan to purchase/install solar panels on your rooftop by mortgaging the property without applying for a home loan.
• You can get a subsidy under this scheme of up to 30% of the benchmark cost in most states and up to 70% of the benchmark cost in special category states.
• If you are above 60 years you can apply for this loan subject to meeting certain criteria.

Repayment Periods

This loan comes with a maximum repayment period of 20 years.If you combine this loan with an existing Canara Bank home loan, however, the payback period will be the same as the home loan.

Eligibility Criteria

There are certain eligibility criteria you have to meet if you wish to apply for this loan, which are given below:

1. Age:
   • Minimum: 21 years
   • Maximum: 60 years

Please note: you can apply if you are above 60 years subject to meeting certain criteria.

2. In the case of salaried applicants, your net take home (NTH) should be atleast 25% and you should be working for a minimum of 3 years.
3. In the case of self-employed applicants, you should be engaged in the business/profession for atleast 3 years.

Quantum of Loan

The quantum of loan would depend on the loan component you are applying for. The quantum for each is mentioned below:

• Housing loan component:
  • Under the General Housing Finance Scheme, you can receive 6times your gross annual income.
  • Under the Housing Loan Scheme for NRIs, you can receive 4 times your gross annual income.
  • Under the YUVA AWAS RIN scheme, you can receive up to 6 years of your gross annual salary.
  • Under the Housing Loan to Agriculturists, you can receive 4 times your average annual income.
• For the solar loan component, you stand to receive the lowest of the following:
  • 20% of your eligible loan amount under the housing loan component.
  • 80% of the cost of the solar panel equipment.
  • Rs.10 lakh.

FAQs

1. What security do I have to provide against my loan?

   You can either mortgage your house or opt to hypothecate the assets from the loan (in this case, the solar equipment) towards security against your loan.

2. What is the processing fee for the loan?

   You will be charged a processing fee of 0.50% of the loan amount, the minimum amount being Rs.1,500 and the maximum being Rs.10,000.

3. Is there a margin on the home loan component of the project cost?

   Yes, there is a margin on the project cost, which would depend on the loan amount and the age of the dwelling. The margin cost ranges from 10% to 25%.

4. What is the margin on the solar loan component?

   The margin is 20% of the project cost for the solar loan component.

5. I live in an apartment. Am I eligible for this loan?

   No, only applicants who live in houses with a rooftop are eligible, since the solar panels would be installed on the roof.