Canara Bank Housing Loan to Agriculturists
Table of Contents
This housing loan by Canara Bank is specifically targeted towards agriculturists or individuals partaking in allied activities including horticulture, planting, dairy or poultry activities.
The interest rate on the Housing Loan to Agriculturists starts from 8.40% p.a. with an interest rate concession for women borrowers. The maximum repayment tenure offered is 30 years with a processing fee of 0.50% of the loan amount.
Interest Rates
This home loan comes with a floating interest rate structure based on your risk grade and loan amount, among other factors. Women enjoy a concession of 0.05% p.a. on the interest rate.
The floating interest rate is pegged to the bank's Marginal Cost of Funds Based Lending Rate (MCLR) which currently stands at 8.40%.
Purpose of Canara Bank Housing Loan for Agriculturalist
The housing loan can be used for a variety of residential purposes, including:
- Purchase of a ready-to-move-in house or flat.
- Construction of a new house or flat.
- Purchase of a residential plot along with the construction of a house. Eligible borrowers may also avail of an additional loan component for fixed furnishing. For composite home loans, the loan amount used to purchase the plot is limited to 60% of the eligible or sanctioned loan amount.
- Repair or renovation of an existing house, with loans of up to ₹15 lakh, provided at least three years have passed since the housing loan repayment commenced.
- Expansion, upgradation, or addition of amenities to an existing house through:
- Component 1: Financing of up to 75% of the project cost for expansion, upgradation, or creation of additional amenities, subject to applicable home loan guidelines.
- Component 2: Financing for fixed furnishings, immovable fixtures, or home enhancements as part of the project cost, limited to 15% of the loan amount or Rs.50 lakh, whichever is lower, subject to applicable terms and conditions.
- Purchase of a second house or flat, even if the borrower already owns a residential property, with or without an existing home loan.
- Balance transfer of eligible home loans from Public Sector Banks, Private Sector Banks, Co-operative Banks, Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs), subject to the lender's eligibility criteria and applicable terms and conditions.
Interest Rate
The interest rates on Housing Loan to Agriculturist may vary depending upon the loan amount. The rate offered to women starts from 7.15% p.a. while for other borrowers the rate of interest starts from 7.20% p.a.
Features of Canara Bank Housing Loan for Agriculturalist
The key features of Canara Bank Housing loan for Agriculturalist are listed in the table below:
Parameter | Details |
Loan Purpose | Purchase or construction of a houseorflat.Purchase of a plot with house construction.Home repairsorrenovation (up toRs.15 lakh).Home loan balance transfer from eligible lenders. |
Eligibility | Available to eligible applicants with valid proof of gross annual income. |
Loan Amount | No upper loan limit, subject to eligibility and repayment capacity. |
Maximum Loan Eligibility | Salaried: Up to 72 times monthly gross salary (up to 96 times in select cases).Self-employed: Up to 6 times average annual gross income (up to 8 times in select cases). |
Home Renovation Loan | Up to Rs.15 lakh. |
Fixed Furnishing Loan | Up to 15% of the loan amount or rs.50 lakh, whichever is lower. |
Processing Fee | 0.50% of the loan amount (minimum Rs.1,500 plus GST and maximum Rs.10,000 plus GST). |
Repayment Tenure | Up to 30 years or until the borrower reaches 75 years of age, whichever is earlier. |
Margin Requirement
Property Type | Loan Amount | Borrower's Margin |
New house/Flat or property up to 10 years old | Up to Rs.30 lakh | 10% |
| Above Rs.30 lakh to Rs.75 lakh | 20% |
| Above Rs.75 lakh | 25% |
Property older than 10 years | Any loan amount | 25% |
Insurance Cover
Eligible home loan borrowers can opt for Canara Home Loan Secure, which finances the one-time premium for a group term life insurance plan that provides coverage against death and total permanent disability, subject to the insurer's terms and conditions.
Note: The bank has announced a 50% waiver on processing charges under its Retail Loan Festival for the applicable promotional period.
- No maximum loan limit, subject to the borrower's income, repayment capacity, and lender's eligibility criteria.
- Competitive interest rates to help reduce the overall borrowing cost.
- Reducing balance interest calculation, where interest is charged only on the outstanding loan balance.
- No prepayment or foreclosure charges, allowing you to repay the loan early without additional penalties, as applicable.
- Finance for home repairs or renovations to upgrade or maintain your existing house or flat.
- Funding for the purchase of a second house or flat, subject to eligibility.
- Minimal processing charges, making the loan more affordable.
- Complimentary credit card, offered as per the lender's applicable terms and conditions.
Eligibility Criteria
The housing loan scheme is available to eligible borrowers engaged in the agricultural sector.
Criteria | Details |
Eligible Borrowers | Agriculturists, dairy and allied activity farmers, planters, and horticulturists. |
Land Holding Requirement | Own and cultivate more than 5 acres of irrigated land or 10 acres of dry land in their name. |
Existing Relationship | Must be an existing bank customer with satisfactory account operations for the last 2 years. |
Credit History | Should have a satisfactory repayment and banking track record. |
Minimum Annual Income | Gross annual income of Rs.5 lakh or above. |
Documents Required
The documents required may vary depending on the purpose of the home loan. The table below provides a quick overview.
Property Documents
Loan Purpose | Documents Required |
Construction of House | Title deeds (last 13 years), Encumbrance Certificate, Khata Certificate/Extract, latest tax receipts, approved building plan, affidavit on approved construction, completion certificate, allotment documents (where applicable), commencement certificate, NOC/Lease Deed (if applicable). |
Purchase of Ready-Built House | Title deeds (last 13 years), Encumbrance Certificate, Khata Certificate/Extract, tax receipts, approved building plan, construction compliance affidavit, completion certificate, sale agreement, original registration and stamp duty receipts, builder documents, seller's KYC, NOC/Lease Deed (where applicable). |
Purchase of Flat | Builder's title deeds, Encumbrance Certificate, Khata Certificate/Extract, tax receipts, flat sketch, sanctioned plan, occupancy certificate, sale agreement, builder's demand notice, commencement certificate, NOC from builder/bank (if applicable), original sale deed. |
Applicant Documents
Category | Documents Required |
Identity & Address Proof | PAN, Aadhaar, Passport, Voter ID, Driving Licence, and valid address proof. |
Photographs | Passport-size photographs of applicant, co-applicant, and guarantor (if applicable). |
Age Proof | Valid age proof document. |
Salaried Applicants | Salary account statement (last 6 months), Form 16, Income Tax Returns (if applicable), employment proof. |
Self-employed Applicants | ITRs, Balance Sheet, Profit & Loss Statement (last 3 years), bank statements, business proof, and business profile. |
Agriculturists | Income certificate issued by the competent revenue authority and land records (where applicable). |
NRI Applicants | Passport, visa/work permit, salary certificate, overseas bank statements, and notarised Power of Attorney (if applicable). |
Additional Documents (If Applicable)
Loan Purpose | Documents Required |
Home Loan Balance Transfer | NOC from the existing lender, sanction letter, loan account statement, list of original property documents, and any other documents required by the bank. |
FAQs on Canara Bank Housing Loan to Agriculturists
- How will the processing fee be calculated for this home loan?
The processing fee charged will be calculated based on your home loan amount. You will be charged a processing fee of 0.50% of the loan amount with a minimum of Rs.1,500 and maximum of Rs.10,000.
- Does this home loan offer a repayment holiday period?
Yes. Here are the different repayment holiday periods for different home types:
- For the purchase of ready built flat/house - Repayment will begin within 2 months from your first disbursement date.
- For the purchase of a site and construction/only construction on an existing plot - Repayment will begin within 2 months from the house completion date or 24 months from the first disbursement, whichever occurs first.
- For the purchase of a flat under construction - Repayment will begin within 2 months from the date when construction was completed or 36 months from the first disbursement, whichever occurs first.
- Will stamp duty and registration charges be considered under the project cost while determining the margin for my loan?
This depends on the total cost of the project. If your total project cost is below Rs.10 lakh, then the stamp duty charges, registration cost, and other documentation charges will be included in your project cost to determine your loan-to-value (LTV) ratio as well as your margin.
If your total project cost is above Rs.10 lakh, then only your basic project cost (excluding stamp duty, registration fee, and other documentation charges) will be considered to determine your margin.
- Is there a maximum age criterion to apply for this loan?
Yes. Your age should not be more than 70 years upon completion of your loan tenure.
- Can I apply online for the Canara Bank Housing Loan to Agriculturists?
Yes. You can apply for this housing loan from Canara Bank online.
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