Canara Bank Loan Against Property

Updated: 11-10-2022 06:16:55 AM

Canara Bank Loan Against Property Highlights 2022
Interest rates	Canara Mortgage: 10.30- 12.35% p.a.
	Canara Rent: 10.70- 11.20% p.a.
Loan amount	Up to Rs 10 crore
Loan tenure	Up to 15 years
LTV Ratio Canara Mortgage:	Up to 50% of the property value offered as security
Processing fee	Canara Rent: Maximum 75% of the net rent receivable
	Up to 1% of the loan amount with minimum Rs 5,000

Note: Interest rates as of 12th August 2022

Interest Rates of Canara Bank Loan Against Property

Canara Mortgage Interest Rates

CRG (Credit Risk Grade)	Interest Rates
1	10.30% p.a.
2	10.35% p.a.
3	10.85% p.a.
4	12.35% p.a.

Canara Rent Interest Rates

Particulars	Interest Rates
Navratna PSUs, AAA rated Companies, Fortune 500 Companies, MNCRG, Banks, Insurance Companies	10.90% p.a.
Others	11.20% p.a.
Property leased to Canara Bank	10.70% p.a.

Compare Interest Rates on Loan Against Property for Top Banks & HFCs

Name of the Lender	Interest Rate (% p.a.)
State Bank of India	9.00-11.90
Bank of Baroda	10.20-15.85
PNB Housing Finance	7.99-11.00
IDFC First Bank	8.40-15.90
HDFC	9.00-11.90
L&T Housing Finance	9.40
LIC Housing Finance	9.10-12.25
Godrej Housing Finance	9.75-14.50
ICICI Bank	9.75-10.90
Tata Capital	10.10 onwards
Bajaj Housing Finance	8.60-18.00
Axis Bank	9.90-10.35
Kotak Mahindra Bank	9.50-11.70

Canara Bank Loan Against Property Fees and Charges

Processing fees

Canara Mortgage	0.50% of loan amount with a minimum of Rs 5,000
Canara Rent	1% of the loan amount with minimum of Rs 5,000

Other fees and charges

Documentation charges	Rs 100 per Lakh or part thereof with minimum of Rs 1000 and Maximum Rs 25000
Inspection charges (for Loan against future rent receivables only)	Upto Rs 10 lakh – Rs 200 per inspection per borrower with a maximum of Rs.600 per year.
	Upto Rs 10 lakh – Rs 200 per inspection per borrower with a maximum of Rs.600 per year.
	Out of pocket expenses to be collected separately (if any).

Types of Canara Bank Loan Against Property

Canara Mortgage (Loan Against Property)

Purpose: To individuals for non-business purposes only, for meeting any unforeseen expenses, urgent personal, medical needs, and more.

Security:

• Equitable Mortgage of property acceptable to the bank with clear marketable title.
• Value of the property should be 200% of the loan amount.

Guarantee: Personal Guarantee from person/s of adequate net worth is acceptable.

Loan amount: Upto 50% of the property value offered as security, with a maximum Rs 10.00 Crore, whichever is less.

Loan tenure: Up to 10 years (tenure can also be more than 10 years for specific cases)

Canara Rent (Loan Against Rent Receivables)

Purpose: To meet the business or personal needs of property owners (lessors) against rent receivables but not for speculative purposes.

Security:

• EMT of the leased property value of which should be atleast 100% of the loan amount.
• If EMT is not possible, the security will be by mortgaging an alternate property with value not less than 150%.
• Assignment of lease rentals in favor of the bank.
• Third party guarantee of person/s of adequate net worth is also acceptable to the bank. However, waiver of third party guarantee may be considered selectively.

Loan amount: Maximum 75% of the net rent receivable for the unexpired period of lease, net of TDS, advance rent taken and other taxes (if any).

Loan tenure:

• Up to 10 years OR unexpired lease period whichever is earlier.
• For loans against Rent receivables from Navaratna Companies, PSUs, AAA rated reputed Companies, Canara Bank, Insurance Companies: Up to 144 months OR upto lease period.

Eligibility Criteria for Canara Bank Loan Against Property

Canara Mortgage Eligibility Criteria

• Net Take Home salary should be 25% of gross salary or Rs 20,000 p.m., whichever is higher after EMI deductions of the proposed loan.
• Individual customers having satisfactory dealings with Canara Bank.
• New customers well introduced and credit worthy with satisfactory bankers / market reports on them.
• NRI customers, with their resident close relatives as co-borrowers.

Canara Rent Eligibility Criteria

• Existing customers with satisfactory dealings.
• New customers well introduced with a satisfactory OPL/market report on them.
• The property should have been leased / rented out to PSUs / Central / State / Semi Govt. Undertakings, Reputed Corporates, Banks, Financial Institutions, Insurance Companies and MNCs including the property leased / rented out to Canara Bank’s Branch/Office or House/Flat leased/rented out to the Bank as Quarters to Canara Bank’s Officers/Executives.
• If the tenant is a Corporate, the minimum external rating of the tenant should be BBB and above.

Documents Required for Canara Bank Loan Against Property

 Canara Mortgage Documents Required

• 2 copies each of Stipulated Loan Application with passport size photographs
• Copy of lease deed
• Income proof of the applicant and guarantor
• Income Tax Assessment Order / IT Returns Title deeds of the property / EC, latest tax paid receipt / Legal Scrutiny Report
• Approved plan of building
• Certificate of balance if finance is availed against property from any other source
• Annual Financial Statements for the past 2 years (in case of persons other than salaried individuals

Canara Rent Documents Required

Registered Lease Deed with any one of the following: Tripartite Agreement executed between lessors, lessee and the financing branch or a Power of Attorney (to be stamped and notarized) executed by the lessors in favor of the bank and copy of the sanctioned plan issued by the Competent Authority.

Click Here:- To Know More About Documents Requirements for LAP