Canara

Why Canara Home Loan Plus is the Best Way to Access Extra Funds on Your Property

Purchasing a home is one of the most significant investments in a person’s life. Managing the financial commitment can be challenging, especially when additional needs such as home renovation, medical expenses or children’s education arise. Understanding this, we offer Home Loan Plus, a flexible financial solution designed to help existing Housing Loan Borrowers to meet various domestic and personal needs without stress. With attractive features and benefits, it empowers borrowers to leverage their existing home loan and achieve their financial goals efficiently.

What is Home Loan Plus?

It is a tailored loan product designed for existing housing loan borrowers. It provides additional funding under the same loan framework, with structured repayment options, competitive interest rates and seamless integration with the borrower’s existing housing loan account. The product is structured to offer flexibility, security and financial convenience to eligible customers.

Canara Home Loan Plus: Key Details

Home Loan Plus offers convenient and affordable financing to help you manage a variety of personal needs with ease.

• Purpose: The loan can be used to meet domestic needs, medical expenses, educational expenses of children or dependents and unforeseen contingencies. It cannot be used for speculative purposes.

• Loan Quantum:
  • Salaried Individuals: Eligible for up to 24 months of gross salary, subject to a maximum of Rs. 50 lakhs.
  • Non-Salaried Individuals: Eligible for up to two times the three-year average gross income, subject to a maximum of Rs. 50 lakhs.

• Margin & Net Take Home (NTH): No margin is required. Net Take Home is 25% for salaried borrowers and 30% for non salaried borrowers.
• Processing Charges: Nominal fee of 0.50% of the loan amount, with a minimum of Rs. 100 and a maximum of Rs. 500.
• Documentation Charges: Rs. 100 per lakh part of the loan, with a minimum of Rs. 1,000 and a maximum of Rs. 25,000.
• Security: The loan is secured against the property mortgaged under the existing housing loan. Further mortgage to be created for “ Canara Home Loan Plus”.  The security is released only after closure of both loans.
• Repayment Tenure: The repayment period is linked to the remaining tenure of the existing housing loan or a maximum of 180 EMIs, whichever is lower. In case of pre-closure of the housing loan, the Home Loan Plus liability must be cleared first.

Key Benefits

Choosing Home Loan Plus comes with several financial advantages:

• Lower Rate of Interest: Borrowers can enjoy attractive interest rates that are generally lower than personal loans.
• Reducing Balance Interest Rate: Interest is calculated on the reducing balance, ensuring you pay less over time.
• No Prepayment Penalty: Borrowers have the flexibility to prepay the loan without incurring additional charges.
• Minimal Processing Charges: Nominal fees make the borrowing process affordable and hassle-free.

Who Can Apply?

Home Loan Plus is exclusively available to existing Canara Bank housing loan borrowers who meet the following criteria:

• Must be an existing housing loan borrower with the bank.
• Should be within the age group of 18 to 75 years.
• Must have a satisfactory repayment track record, regardless of how long the current loan has been active.
• In case of joint loan accounts, the age of the youngest borrower will be reckoned in line with Housing Loan guidelines.
• Should comply with all scheme-specific terms and conditions as prescribed by the bank.

Why Choose Us?

Canara Home Loan Plus is designed to offer added financial flexibility and support, making it a valuable choice for those looking to make the most of their existing home loan.

• Flexible Loan Structuring: Tailored repayment options aligned with your existing housing loan make managing finances easier.
• Quick Loan Disbursal: Streamlined processes ensure faster approval and disbursal, reducing delays in meeting urgent needs.
• Transparent Terms: No hidden charges or surprises, everything from processing fees to repayment terms is clearly communicated.
• Trusted Security Measures: The loan is backed by well-defined collateral arrangements, giving peace of mind.
• Smart Financial Planning Tools: Use Canara Bank’s EMI Calculator to plan repayments efficiently and estimate monthly instalments with accuracy.

Conclusion

Managing personal financial needs alongside a home loan can be challenging, but Home Loan Plus makes it simple. With attractive interest rates, minimal processing charges and flexible repayment options, it offers a convenient way to access funds for various domestic and personal requirements. Existing Canara Bank housing loan borrowers can take advantage of this scheme to meet urgent needs or enhance their quality of life without financial strain. Choosing Canara Bank Home Loan Plus means leveraging an existing home loan while benefiting from a solution designed for convenience and financial well-being.