Founded in 1906 and nationalised in 1969, Canara Bank has been scaling the growth trajectory to become one of the major 'financial conglomerate' in the country courtesy nine joint ventures, 5727 branches, 147 hi-tech E-lounges, 9132 ATMs besides launching several products and services. Some of the products launched by Canara Bank include online trading terminal, Canara e-Infobook, Canara Bank platinum rupay cards, cheque deposit kiosk and EMV chip cards in addition to enquiry portal for social security schemes, digital life certificates and mobile banking services among many others. Canara Bank also offers an attractive house improvement loan.
Home Improvement Loan Scheme offered by Canara Bank offers a viable financial package to customers who wish to furnish their houses or flats at competitive interest rates. The home improvement loan scheme can be used for the purchase of following objects:
The minimum age limit is 18 years while the maximum is 55 years. It is important to note that the loan instalments should be cleared before the attainment of 70 years.
Flat owners who are salaried individuals, professionals, self-employed or in business including NRIs can avail of the Home Improvement Loan Scheme. Salaried individuals should be employed for a minimum period of three years. Non-salaried individuals should be in business for a minimum of three years as well. The home improvement loan can be availed under the following conditions:
A salaried individual is eligible for the home improvement loan scheme offered by Canara Bank if the minimum net take home (monthly) is 25% of his or her gross salary or Rs.2000, excluding the instalments for repayment of the said loan. To be eligible for the home improvement loan scheme, non-salaried individuals and professionals should have an annual income (minimum) of Rs.50,000 and submit the relevant IT returns as proof for the same.
Customers or borrowers under the home improvement loan scheme offered by Canara Bank have to hypothecate their assets acquired from the said loan, mortgage their houses and provide a personal guarantee, if need be. In some cases, Canara Bank may consider waiver of submission of security.
The maximum loan quantum which can be availed under the Home Improvement Loan Scheme is Rs.2 lakh. Canara Bank may approve a higher loan amount for up to Rs.5 lakhs selectively, subject to various conditions. If a customer avails of the home improvement loan scheme in addition to the housing loan from Canara Bank, the maximum amount eligible will be one year’s gross salary.
The interest rate for all retail lending/loan schemes offered by Canara Bank is based on its base rate.The interest rate charged for the home improvement loan scheme is base rate +2.25%. The base rate of Canara Bank is 9.65% (as of October 2015).
The maximum repayment period of home improvement loan scheme offered by Canara Bank is 60 months. In some cases, the repayment period may be extended up to 7 years, subject to conditions.
There are several charges as listed in the table below:
|Charges||Amount||Processing Charges||0.50% of loan amount. The minimum is Rs.1500 while the maximum is Rs.10,000||Documentation Charges||The minimum amount is Rs.1000||Inspection Charges||Rs.200. The maximum amount is Rs.600 p.a|
In addition to the aforementioned charges, several other charges such as outsourcing charges, CERSAI charges, CIBIL charges, LSR Charges, Insurance premia have to be incurred by borrowers.
In case a customer avails of the home improvement loan scheme as part of Canara Bank’s housing finance scheme, the margin for the latter is applicable to the former as well. However, other cases have a stipulated 20% margin.
Customers can apply and track status of their loan application online on the official website of Canara Bank.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.