Canara Bank Home Construction Loan

A construction loan is a type of financing that helps you cover the costs of building a new home or other real estate project. There are two main types of construction loans: standalone and construction-to-permanent. Standalone loans are just for the construction phase, while construction-to-permanent loans can be converted into a permanent mortgage once the project is finished.

Canara Construction Loan offers financial support for individuals looking to build their homes from the ground up. Tailored for those who already own land and aspire to commence new construction, the loan comes with advantages such as online approval, minimal paperwork, and affordable EMIs. Stay informed for details on the Canara Construction Loan, including interest rates, eligibility criteria, fees, and more.

Canara Bank Home Construction Loan – Highlights

Canara Construction Loan Interest Rates

Following is the interest rate of Canara Bank home construction loan:

Canara Construction Loan Fees and Charges

The processing fee for Canara Construction Loan is typically calculated as a percentage of the loan amount, with a maximum cap of 0.50% or Rs. 10,000, whichever is lower. This fee, considered a service charge, is subject to the prevailing Goods and Services Tax (GST) rate, which is currently set at 18%. It’s important to note that while the fee is a percentage of the loan, there is a specified upper limit to ensure transparency and fairness. Understanding these fees crucial for borrowers seeking financial assistance for their construction projects through the Canara Construction Loan.

Canara Construction Loan Eligibility Criteria

Applicant Eligibility:

• Resident Indians, Non-Resident Indians (NRIs) with Indian passports, Persons of Indian Origin (PIOs) holding foreign passports, and Overseas Citizens of India (OCIs) are eligible.

Salaried Individuals:

• Minimum of 2 years of aggregated regular and continuous service.
• Minimum completed service of 6 months in the current organisation/company.

Non-salaried Individuals:

• Individuals engaged in business and self-employed persons like doctors, chartered accountants, architects, and others.
• Subject to producing documentary evidence of 3 years of Income Tax Returns (ITR) or Income Tax Assessment Orders (ITAO).

Entry & Exit Age:

• The entry age of the borrower should be below 60 years to avail of the loan.
• Borrowers should be capable of clearing the liability before reaching 75 years of age.
• If the main borrower’s entry age is 60 years and above, the loan must be availed of jointly with the earning spouse or earning legal heirs only.

Takeover of HL Liability:

• Eligible accounts from all Public Sector Banks, Private Sector Banks, Co-operative Banks, Regional Rural Banks, NBFCs, and HFCs considered.
• Eligibility is subject to terms and conditions specified by the lending institutions.

Canara Construction Loan Documents Required for Salaried

General Documents

1. Stipulated Loan Application: Fill out and sign the loan application form.
   
2. Two Passport Size Photos: Applicant and co-applicants/guarantor.
   
3. KYC Documents:
   1. Proof of Identity: PAN card, driver’s licence, voter ID, passport, Aadhaar card, etc.
   2. Proof of Residence: Driver’s licence, voter ID, passport, Aadhaar card, electricity bill, telephone bill, GST business proof, etc.
   3. Age Proof: Birth certificate, school leaving certificate, passport, etc.
      
4. PAN Card Photocopy: Self-attested photocopy.

Income Proof

1. Bank Statement of Salary Account: Past 6 months.
   
2. Proof of confirmed service:
   1. Latest Form 16 and ITR (if any)
   2. Employee ID/Appointment Letter/Confirmation in service document
   3. 3 years IT Returns (if Form 16 is not available)

Loan Purpose Documents

1. Title deeds of the property and link documents for the last 13 years.
2. Encumbrance Certificate for past 13 years.
3. Khata Certificate/Khata Extract.
4. Up-to-date tax paid receipts for the property.
5. Copy of the approved plan for the proposed construction/extension/addition.
6. Affidavit-cum-undertaking for adherence to the sanctioned plan.
7. Completion Certificate (within 3 months of completion).
8. Allotment letter of Co-operative Society/Housing Board (if applicable).

Additional Documents

1. NOC from existing bank regarding pre-closure (if applicable).
2. List of original documents held by transferor bank along with their attested copy (if applicable).
3. Copy of sanction letter and statement of loan account from date of sanction (if applicable).
4. Any other documents as required by Canara Bank.

Canara Construction Loan Documents Required for Self Employed

General Documents

Same as for salaried individuals.

Income Proof

1. Balance Sheet and Profit & Loss Account: Past 3 assessment years.
2. ITR/ITAO: Filed for past 3 assessment years.
3. Statement of Bank Account: Business and personal accounts.
4. A brief note on the nature of business.
5. Proof of Business: GST certificates, licences, etc.

Loan Purpose Documents

Same as for salaried individuals.

Additional Documents

1. Copy of land records (if agricultural income is included in ITR).
2. Notarized Power of Attorney (if applicable).
3. Any other documents as required by Canara Bank.

Features of Canara Construction Loans

• Canara Construction Loan caters to various housing needs, including the purchase of ready-built houses/flats, construction of new properties, and acquisition of a site with construction, allowing for flexibility in housing choices.
  
• The loan extends financial assistance for repairs and renovations, offering a maximum amount of 15 lakh, provided that the housing loan has been completed for three years from the commencement of the repayment date.
  
• Canara Construction Loan facilitates the takeover of housing loan liabilities from a range of financial institutions, including public sector banks, private sector banks, co-operative banks, regional rural banks, NBFCs, and HFCs, subject to terms and conditions.
  
• The loan offers a high quantum for both salaried and non-salaried individuals, with a maximum of 72 times the last drawn monthly gross salary for salaried individuals and up to 6 times the annual gross income for others. Selectively, higher multiples are permissible.
  
• The loan features a waiver of 100% processing charges during the Retail Loan Festival period from January 1, 2024, to January 31, 2024. Additionally, for customers enrolled in the Canara SB Premium Payroll package, processing charges for takeover of housing loan liabilities are waived until January 31, 2024. The repayment tenure extends up to 30 years or the borrower’s age of 75, and a nominal processing fee of 0.50% (with specified minimum and maximum) is applicable.

*all other terms and conditions shall apply