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    Canara Bank Home Improvement Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    13.65% Floating
    1% (min. ₹250) One time fee
    1L
    1-3 years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Eligibility Criteria
    Personal Loan BYTES FROM OUR KITCHEN

    Overview about Canara Bank Home Improvement Loan

    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.

    What can this loan be used for?

    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:

    • Household furniture
    • Fans and air conditioners
    • Refrigerators
    • Wardrobes

    What is the minimum and maximum age limit of customers who wish to avail of the Home Improvement Loan Scheme offered by Canara Bank?

    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.

    Who can avail of Home Improvement Loan Scheme?

    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:

    • Customer takes a loan under the housing finance scheme offered by Canara Bank
    • Customer does not take a loan under the housing finance scheme
    • Customer takes a housing loan offered by other financial institutions and banks

    What is the minimum salary required to be eligible for the Home Improvement Loan Scheme?

    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.

    What are the terms associated with this loan?

    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.

    What is the maximum loan amount which can be availed?

    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.

    What is the interest rate charged by Canara Bank on its Home Improvement Loan Scheme?

    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).

    What is the repayment period for this loan?

    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.

    What are various charges associated with the home improvement loan scheme?

    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.

    What is the margin for the Home Improvement Loan Scheme?

    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.

    How can one apply for this loan?

    Customers can apply and track status of their loan application online on the official website of Canara Bank.

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