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  • Canara Bank Housing Loan to Agriculturists

    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%.

    Find below the interest rates offered on Housing Loan to Agriculturists:

    Loan Amount Interest Rate for Women Applicants Interest Rate for Other Applicants Categories
    Salaried employees (all loan amounts) 8.40% p.a. 8.40% p.a. CIC Risk Grade (Low Risk Category)
    Up to Rs.30 lakh 8.45% p.a. 8.50% p.a. Other Categories
    Rs.30 lakh to Rs.75 lakh 8.55% p.a. 8.60% p.a.
    Above Rs.75 lakh 8.60% p.a. 8.65% p.a.

    Features and Benefits

    This home loan can be obtained for the following reasons:

    • For the purchase of a house/flat.
    • For the purchase of site/plot followed by construction.
    • For the purpose of constructing a house/flat.

    Please note that the property for purchase should be non-agricultural and you must produce valid documents for the usage of housing/non-agricultural reasons.

    Eligibility Criteria

    You must meet the following eligibility criteria if you wish to apply for the Housing Loan to Agriculturists:

    1. You must be an agriculturist who owns and cultivates an agricultural land of over 5 acres of irrigated land or 10 acres of dry land.
    2. You must have at least 2 years of satisfactory dealings.
    3. Maximum loan amount:
      • 4x your average annual income.
      • For renovations/repairs to an existing house/flat – Rs.15 lakh.
    4. Income criteria:
      • Your Net Take Home (NTH) income should be at least Rs.10,000 after meeting your proposed EMI (equated monthly instalment) on this loan.
      • If you’re an agriculturist dealing in allied activities, your minimum gross income should be Rs.5 lakh p.a.
    5. Security – Equitable registered mortgage/mortgage of deposit of the title deed (whichever is applicable).

    Documents Required

    While applying for this loan, you need to submit certain documents as mentioned below:

    • Completed loan application form along with 2 passport size photographs of the applicants and guarantors.
    • Sale Agreement.
    • Sale Deed.
    • For renovations/repairs/additions/constructions – Copy of the approved plan.
    • Detailed cost estimate.
    • A valuation report from the bank’s Panel Chartered Architect/Engineer.
    • Allotment letter of the association/housing board/co-operative housing society/apartment owner’s association/builder/No Objection Certificate from the society.
    • Encumbrance Certificate for the last 13 years, property tax paid receipt, legal scrutiny report, khata and permission for the mortgage, wherever applicable.
    • Proof of income.

    Margin on Housing Loan to Agriculturists

    The margin on this home loan offered by Canara Bank is based on your loan amount and whether the property (flat/house) is new or old.

    Find below the margins applicable on this housing loan:

    Home Loan Amount New House Old House (Up to 10 years) Old House (Below 10 years)
    Up to Rs.30 lakh 10% 20% 25%
    Rs.35 lakh to Rs.75 lakh 20% 20% 25%
    Above Rs.75 lakh 25% 25% 25%

    *The margin is fixed at 25% of the project cost for repairs, renovations, etc.


    1. 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.

    2. 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.
    3. 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.

    4. 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.

    5. 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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