Canara Bank Home Loan Interest Rates

Highlights on Canara Bank Home Loan Interest Rate

Housing Loan Interest Rate	8.15% – 11.00%
Penal Interest	NIL
Processing Fee	0.50% (ranging from Rs. 1,500 to Rs. 10,000 + GST)
Maximum Tenure	30 years, or up to 75 years of the borrower’s age, whichever is earlier.
Maximum Loan Amount	Up to 72 times the last drawn monthly gross salary/ up to 6 times the applicant’s gross annual income.
Loan-to-Value Ratio (LTV)	Upto 90% of the property’s value

The current home loan interest rate in Canara Bank starts at 8.15% per annum and goes up to 11.00% per annum. Loans are offered at different rates to different applicants based on their financial credibility. Further, interest charges are calculated using the reducing balances method. Canara Bank’s home loan rates also vary with changing products. For instance, a home loan for buying a new house may be differently charged than a home loan meant for renovation purposes.

Canara Bank Home Loan Interest Rates for Salaried vs. Self-Employed Individuals

Salaried and self-employed/ non-salaried individuals can apply for a home loan at Canara Bank. Depending on the strength of one’s application, the interest charges range from 8.15% per annum to 11.00% per annum.

While the interest rate range remains unchanged, the eligibility criteria vary based on an applicant’s employment profile. For instance, salaried applicants must showcase 2 years of continuous and aggregate employment and a minimum of 6 months of service in the current organisation. Non-salaried applicants are required to produce 3 years of documentary evidence of their ITR/ITAO filings. 

Canara Bank Home Loan Interest Rates for Women

Loan Product	Interest Rate for Women Applicants (p.a.)
Housing Loan	8.15% – 10.95%

Canara Bank’s home loan interest percentage for women applicants ranges from 8.15% per annum to 10.95% per annum. Specialised concessions up to 0.85% allow eligible customers to borrow at cheaper rates. These cuts aim to encourage greater women’s participation in the homeownership framework, ensuring wide financial inclusivity.

How do you calculate EMIs on a Canara Bank Home Loan?

The Canara Bank home loan percentage is key in determining monthly repayments. Borrowers can calculate their EMIs on home loans using the following formula:

EMI= P×r×(1+r)n​/ (1+r)n−1

Where,

• P = Loan principal
• r = Monthly interest rate (Annual Rate / 12 / 100)
• n = Loan tenure in months

As an alternative to tedious manual calculations, Canara Bank Home Loan EMI Calculator allows borrowers to calculate EMIs within seconds. Simply enter your loan amount, interest rate, and tenure to get instant calculations.

Factors Affecting Canara Bank Home Loan Interest Rate and EMI

Various factors influence the Canara Bank home loan interest percentage, from loan amounts to bank policies. Take a look at how these factors come into play:

• Applicant’s Credit Score: Credit ratings indicate a borrower’s financial credibility. A high score (typically 750 and above) attracts low Canara Bank home loan interest rates, while a low score attracts higher rates.
• Loan Amount: Home loans with higher amounts are typically offered at high interest rates, while loans with lower interest rates are provided at lower rates.
• Loan Tenure: Longer loan periods ensure low EMIs but increase overall interest payouts. Conversely, shorter loan tenures imply hefty EMIs but limit the lower total interest payouts.
• Income & Employment: These factors indicate an applicant’s financial health. Canara Bank’s home loan rates are typically lower for candidates with consistent employment and stable incomes and vice versa.
• Other Factors: Aspects like RBI’s monetary policy, the bank’s internal policies, and the LTV ratio are key to determining the Canara Bank housing loan interest rate.

 

Impact of RBI’s Repo Rate Cut on Canara Bank’s Home Loan EMIs

The Reserve Bank of India (RBI) announced its latest repo rate cut of 25 basis points (bps) on 7th February 2025 for home loan borrowers with floating interest rates. The fresh repo rate reduction will translate into lower EMIs. Look at how the central bank’s latest move will impact monthly repayments of a home loan worth Rs. 50 lakhs for 10 and 20 years tenures below:

Case 1: Rs. 50 lakhs home loan for 10 years

Loan Amount:	50 lakhs
Loan Tenure:	10 years
Original Interest Rate:	8.15% p.a.
EMI	₹61,061
Revised Interest Rate:	7.90% p.a. (8.15-0.25)
EMI	₹60,400

For a home loan of Rs. 50 lakhs borrowed for 10 years, the latest repo rate deduction offers a monthly savings of Rs. 661 (61,061-60,400).

Case 2: Rs. 50 lakhs home loan for 20 years

Loan Amount:	50 lakhs
Loan Tenure:	20 years
Original Interest Rate:	8.15% p.a.
EMI	₹ 42,290
Revised Interest Rate	7.90% p.a. (8.15-0.25)
EMI	₹ 41,511

For a home loan of Rs. 50 lakhs borrowed for 20 years, the latest repo rate deduction offers a monthly savings of Rs. 779 (42,290- 41,511). 

How to Get the Best Interest Rate on Canara Bank Housing Loan?

Here are some practical tips to get a Canara Bank housing loan with the best possible interest rate:

• Apply for loan amounts that you can comfortably repay. 
• Be sure to maintain a credit score of 750 or above.
• Showcase stable income and consistent employment.
• Negotiate with the lender before signing the agreement. 
• Make hefty down payments that minimise risk for the bank, ultimately lowering interest rates.