Buying your own house is a big step both financially and emotionally. It is often considered to be the biggest financial investment that you’ll make in your lifetime. And almost all of us, the aam folks, can’t really afford to buy a house with just our savings alone. Instead, we usually avail a Home Loan to help us buy the house of our dreams. Of course, there are a plenty of Home Loans available in the market, but in this article, we’ll be focussing on the Canara Bank Home Loan. We’ll tell you all about the interest rate, eligibility criteria and everything else you need to know.
Before we start discussing the features of Canara Bank’s Housing Loan, though, let us first figure out whether it makes sense to buy a house or not. Okay? We’ve got four solid reasons as to why you should totally buy a house. Here goes:
It’ll kick inflation in the backside any day
A house is a great investment, especially with the booming property prices year-on-year. This investment provides capital appreciation like no other.
Additional Reading: Best investment options available in India
You can claim tax benefits if you take a Home Loan
Yeah, the dreaded tax! Wouldn’t we all love to save a little extra on taxes every year? If you’ve bought a house and availed a Home Loan for the same, you can claim tax deductions under Section 24(b) of the Income Tax Act. Under Section 80C, you can claim deductions on the principal repayment on your Home Loan for up to Rs. 1.5 lakhs.
Buying your own home can help you save more than renting
If you’re planning to stay in the same location for a long term, say 15 to 20 years, then it makes sense to get your own house instead of renting. For shorter duration stays, like 3 to 5 years, it does make sense to rent.
It gives you a sense of accomplishment
To be honest, a house is a huge investment financially. You’re going to be spending a great amount of money on buying one. But then again, it is a wise investment, something you’ll never regret, ever. And owning a home, no matter the cost, is a great feeling in itself.
Additional Reading: Should I Buy A House Or Continue Staying On Rent?
Anyway, if you’ve already decided to buy a house and are looking for a Home Loan, you may want to consider the Canara Bank Home Loan. Well, there are other great Home Loan options available but allow us to tell you all about Canara Bank’s Home Loan first. Okay?
For what purpose can you avail a Home Loan from Canara Bank?
You can opt for a Home Loan from Canara Bank to:
- Buy an already-constructed house or flat
- Construct a house or flat
- Purchase a plot and construct a house on it
- Buy a second house or flat
- For repairs or renovations or additional construction on your present house
- For balance transfer to another Home Loan
Are you eligible for this loan?
The following persons are eligible for a Canara Bank Home Loan:
- A permanent salaried individual with a minimum of three years in service
- Businessmen, professionals, and self-employed individuals who have been in their respective lines for at least three years
- Guardians can apply on behalf of minor applicants. The date of birth of the minor will be necessary in this case
Applicants should not be more than 55 years of age while applying for the loan. Those who are above 55 years of age are also eligible but there will be certain conditions attached. By the way, Canara Bank offers a Housing Loan scheme for senior citizens too.
How much money can you borrow?
Borrowing capacity of an individual depends on various factors such as their income, their credit history, the value of the property, etc. However, this is how much Canara Bank finances generally:
- Salaried individuals – Up to 4 years of gross salary
- Self-employed/business/professionals – Up to 4 years of gross annual income
- If borrowing for repairs or renovation purpose, then a maximum of Rs. 15 lakhs can be borrowed
In certain circumstances, the bank may allow individuals to borrow up to 5 years of gross salary/annual income.
What’s the interest rate?
The rate of interest on Canara Bank’s Home Loan is as follows:
For women borrowers,
- Loan up to Rs. 30 lakhs – 8.45%
- Loans above Rs. 30 lakhs, up to Rs. 75 lakhs – 8.55%
- Loans above Rs. 75 lakhs – 8.60%
For other borrowers,
- Loan up to Rs. 30 lakhs – 8.50%
- Loans above Rs. 30 lakhs, up to Rs. 75 lakhs – 8.60%
- Loans above Rs. 75 lakhs – 8.65%
What about the repayment tenure and prepayment option?
Canara bank gives borrowers a maximum tenure of 30 years to repay the loan. As far as prepayments are concerned, you’ll need to get in touch with the bank if you want to prepay your loan. In short, it’s your choice, although the bank may have prepayment charges.
So, what do you think? Is Canara Bank’s Housing Loan worth considering?
Additional Reading: Rules To Follow When Taking A Home Loan
Anyway, we’ve got a lot of offers from other banks too. Compare and choose whichever suits your requirements. Cool?