Canara Bank, one of India’s leading public sector banks, offers a range of home loan products catering to various borrower needs, including home purchase, construction, renovation, and plot loans. In 2025, Canara Bank continues to be a reliable option for affordable housing finance, thanks to competitive interest rates, simple documentation, and customer-friendly features.
Key Features of Canara Bank Home Loans
- Loan Amount: Based on income and repayment capacity; can go up to ₹5 crore or more
- Loan Tenure: Maximum of 30 years
- Interest Rate: Attractive floating and fixed rate options
- Repayment: EMI, step-up, or balloon payment options
- Eligibility: Salaried, self-employed, pensioners, NRIs
- Security: Mortgage of the financed property
- Additional Facilities: Top-up loans, insurance coverage, balance transfer
Canara Bank Home Loan Interest Rates (2025)
Canara Bank offers floating interest rates linked to the RBI’s Repo Rate under the External Benchmark Lending Rate (EBLR) system. Rates may vary based on the applicant’s credit profile, income, and loan amount.
- Starting Interest Rate: From 8.20% p.a.
- Typical Range: 8.20% to 9.90% p.a.
- Fixed Rate Option: Available for select tenures, typically 1–5 years, starting from 9.80% p.a.
- Credit Score Impact:
- 750 and above: Best rates
- 700–749: Slightly higher rates
- Below 700: Stricter eligibility and higher rates
- 750 and above: Best rates
Types of Home Loans Offered by Canara Bank
- Canara Housing Loan – For purchase/construction of a new or resale house/flat
- Canara Home Improvement Loan – For renovation, repairs, and upgrades
- Canara Plot Loan – To buy residential plots (usually with condition of construction within 2 years)
- Canara Top-Up Loan – Extra funds over existing home loan after regular repayments
- Canara Home Loan Plus – For furnishing, interiors, solar power, and more
- Home Loan for NRIs – Specifically for non-resident Indians to buy or construct residential property in India
- Balance Transfer Facility – Switch your home loan from another bank to Canara Bank at lower interest
Eligibility Criteria
- Age: 21 to 70 years (at loan maturity)
- Occupation: Salaried, self-employed, businesspersons, pensioners, NRIs
- Minimum Income: ₹25,000/month (can vary based on location)
- Credit Score: Preferably 700 and above
- Loan-to-Value (LTV):
- Up to 90% for loans up to ₹30 lakh
- 80% for ₹30 lakh – ₹75 lakh
- 75% for loans above ₹75 lakh
- Up to 90% for loans up to ₹30 lakh
Required Documents
Identity and Address Proof:
- PAN, Aadhaar, Passport, Driving License
For Salaried Applicants:
- Salary slips (last 3 months)
- Form 16 or Income Tax Returns (last 2 years)
- Bank statements (last 6 months)
For Self-Employed:
- ITRs (last 2–3 years)
- Balance sheet and P&L account
- Business registration/licensing documents
Property Documents:
- Sale deed or agreement
- Approved building plan
- Encumbrance certificate
- Allotment letter or possession certificate (if applicable)
Fees and Charges
- Processing Fee: 0.50% of the loan amount (typically ₹1,500 to ₹10,000)
- Legal & Valuation Charges: Varies by city and property value
- Prepayment Charges:
- Floating Rate Loans: Nil for individuals
- Fixed Rate Loans: Up to 2% if prepaid from non-own sources
- Floating Rate Loans: Nil for individuals
- Conversion Charges: For rate changes from fixed to floating or vice versa, nominal charges may apply
EMI Example
For a ₹40 lakh home loan at 8.40% interest over 20 years:
- EMI: ₹34,480 approx.
- Total Interest: Around ₹42.75 lakh
- Prepayment after 5 years: Can reduce interest by ₹6–8 lakh depending on amount
Special Features
- Quick Processing: Digital application and document upload options
- Concessional Rates for Women: Additional 0.05% interest rate benefit
- Top-Up Loans: Easy availability for existing borrowers with good repayment history
- Flexible Repayment Options: EMI holiday for first few months available in select schemes
- Insurance Option: Borrowers can opt for loan protection plans bundled with the home loan
Pros and Cons
Pros:
- Competitive interest rates for both salaried and self-employed
- Long loan tenure up to 30 years
- Prepayment and foreclosure allowed without penalty (for floating rates)
- Online tracking and customer support through Canara Bank mobile app
Cons:
- Processing may be slower in rural branches
- Some upfront costs (like valuation/legal fees) are separate
- Fixed rate loans have limited tenure and prepayment charges
Borrower Tips
- Maintain a credit score above 750 for the lowest rates
- Consider applying jointly with a spouse or parent to increase eligibility
- Use a home loan EMI calculator before applying
- Request festive discounts on processing fees during Diwali or New Year
- Ask about overdraft-linked home loans if you keep surplus funds
Final Thoughts
Canara Bank is a dependable choice for borrowers looking for a balance of low interest rates, government-backed security, and extensive branch support. With home loan products tailored to different needs and borrower categories, Canara Bank remains a solid competitor in the housing finance market in 2025. Whether you’re a salaried employee, a business owner, or an NRI, Canara Bank’s home loans offer flexible terms and reliable service.