|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|
Canara Rent Interest Rates
|Navratna PSUs, AAA rated Companies, Fortune 500 Companies, MNCRG, Banks, Insurance Companies||10.90% 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|
|L&T Housing Finance||9.40|
|LIC Housing Finance||9.10-12.25|
|Godrej Housing Finance||9.75-14.50|
|Tata Capital||10.10 onwards|
|Bajaj Housing Finance||8.60-18.00|
|Kotak Mahindra Bank||9.50-11.70|
Canara Bank Loan Against Property Fees and Charges
|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.
- 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.
- 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).
- 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