Canara Bank Home Renovation Loan

The Canara Bank Home Renovation Loan is a type of personal loan that can be used for various purposes related to home improvement, such as painting, tiling, flooring, waterproofing, plumbing, etc. The loan amount ranges from ₹ 10,000 to ₹ 15 lakhs, with interest rates starting at 9.25% per annum. Collateral or security is not needed for this loan, which has a 60-month repayment period. Both salaried and self-employed people, as well as NRIs, are eligible for the loan.

Canara Bank Home Renovation Loan – Highlights

Following are some of the key salient features of the Canara Bank Home Renovation Loan:

Canara Bank Home Renovation Loan Features & Benefits

Some of the features and benefits of the Canara Bank Home Renovation Loan are:

• There is no upper limit on loan amount (subject to income and repayment capacity)
• Reducing balance interest rate
• No prepayment penalty
• Minimal processing fee (0.50% of the loan amount, minimum ₹ 1,500 and maximum ₹ 10,000)
• Complimentary credit card (subject to eligibility)
• Easy documentation and quick disbursal

Canara Bank Home Renovation Loan Interest Rates

Canara Bank interest rates may vary depending on the loan amount, tenure, and credit rating of the borrower:

• For home improvement loans up to Rs. 2 crore, the interest rate is between 10.80% and 12.85% per annum. The maximum tenure is 5 years.
• For non-callable term deposits of Rs. 1 crore and above, the interest rate is between 7.00% and 7.50% per annum. The minimum tenure is 46 days.
• For callable term deposits of less than Rs. 2 crore, the interest rate is between 6.70% and 7.75% per annum. The minimum tenure is 7 days.

*You can also use the EMI calculator on the Canara Bank website to estimate your monthly payments and interest charges for different loan amounts and tenures. 

Canara Bank Home Renovation Loan Eligibility Criteria

The eligibility criteria for the Canara Bank Home Renovation Loan are as follows:

• You must be an Indian resident, NRI, or Person of Indian Origin (PIO) who carries a foreign passport or an Overseas Citizen of India (OCI) card.
• The minimum and maximum entry age to avail of this loan are 21 years and 70 years, respectively.
• The maximum exit age must not exceed 75 years.
• Salaried individuals must have a minimum work experience of two years.
• Self-employed individuals must have a minimum business tenure of three years.
• You must have a good credit score and income stability.
• You must submit proof of income continuity and property documents.

*You can also check your eligibility and EMI for the Canara Bank Home Renovation Loan using the online calculators provided by the bank

Canara Bank Home Renovation Loan Documents Required

To apply for the Canara Bank Home Renovation Loan, you need to submit the following documents:

• KYC documents (identity proof, address proof, PAN card, etc.)
• Income proof (salary slips, bank statements, IT returns, etc.)
• Property documents (title deeds, link documents, encumbrance certificates, tax receipts, etc.)
• Copy of the approved plan for the proposed renovation work
• An affidavit-cum-undertaking that the renovation work will be done as per the approved plan and/or building bye-laws
• Any other documents as required by the bank

Canara Bank Home Renovation Loan Processing Fees And Other Charges

The processing fees and other charges for the Canara Bank Home Renovation Loan are as follows:

• Processing fee: 0.50% of the loan amount, minimum ₹ 1,500 and maximum ₹ 10,000
• Prepayment penalty: Nil for floating rate loans, 2% for fixed rate loans
• Late payment charge: 2% per month on the overdue amount
• Cheque bounce charge: ₹ 400 per cheque bounce plus GST
• Cheque swap charge: ₹ 500 per transaction plus GST
• Duplicate NOC charge: ₹ 500 per NOC plus GST
• Statement charge: ₹ 200 plus GST per request
• Foreclosure statement charge: ₹ 500 plus GST per request
• Amortisation schedule charge: ₹ 200 plus GST per request

*Please note that these charges are exclusive of GST and other applicable taxes and are subject to change as per the bank’s policy.

Canara Bank Home Renovation Loan For Salaried Person and For Self-Employed

The benefits and interest rates of the Canara Bank Home Renovation Loan for salaried and self-employed people are:

• You can get a loan amount of up to 4 times your gross annual salary or income.
• You can enjoy a lower rate of interest compared to other loans.
• You can repay the loan in easy instalments for up to 30 years.
• You can avail of the loan without any prepayment penalty or hidden charges.
• For home furnishings and appliances, the interest rate is 9.25% for all borrowers.
• For repairs and renovations, the interest rate ranges from 10.80% to 12.85% for salaried borrowers and from 11.05% to 13.10% for self-employed borrowers.

Canara Bank Home Renovation Loan – Terms And Conditions

The terms and conditions for home renovation loans from Canara Bank are as follows:

• The loan is available for existing home loan borrowers as well as new customers who want to purchase household appliances, furnish, or renovate their homes.
• The loan amount is up to Rs. 2 lakh on top of the existing home loan amount, subject to the eligibility and repayment capacity of the borrower.
• The interest rate is between 9.25% and 11.45% per annum, depending on the loan amount, tenure, and credit rating of the borrower.
• The processing fee is 0.50% of the loan amount, subject to a minimum of Rs. 1,500 and a maximum of Rs. 10,000.
• The repayment tenure is up to 5 years, with monthly installments through ECS or post-dated cheques.
• The property financed by the current home loan serves as the equitable mortgage security for the loan.
• The loan is also available for NRIs, subject to the same terms and conditions as applicable to resident Indians.