Canara Bank Home Loan Interest Rate 2019 Calculator

Calculate your EMI, total interest, and repayment schedule based on Canara Bank’s 2019 interest rates

Comprehensive Guide to Canara Bank Home Loan Interest Rates 2019

In 2019, Canara Bank offered some of the most competitive home loan interest rates in the Indian banking sector. As one of India’s largest public sector banks, Canara Bank provided attractive rates ranging from 8.30% to 8.65% depending on the borrower category, loan amount, and other eligibility criteria. This comprehensive guide will help you understand Canara Bank’s 2019 home loan offerings, how to calculate your EMI using our interactive calculator, and what factors influenced the interest rates during that period.

Key Features of Canara Bank Home Loans in 2019

• Attractive Interest Rates: Starting from 8.30% p.a. for women borrowers and 8.35% for others
• High Loan Amount: Up to ₹10 crore depending on eligibility
• Flexible Tenure: Up to 30 years for repayment
• Low Processing Fees: As low as 0.25% during special offers
• No Prepayment Charges: For floating rate home loans
• Balance Transfer Facility: Attractive rates for transferring existing home loans
• Top-Up Loans: Available for existing home loan customers

Canara Bank Home Loan Interest Rates 2019 – Detailed Breakdown

Borrower Category	Loan Amount	Interest Rate (p.a.)	Processing Fee
Salaried Employees	Up to ₹30 lakhs	8.35%	0.35% (min ₹1,500)
Salaried Employees	₹30 lakhs to ₹75 lakhs	8.40%	0.35% (min ₹1,500)
Salaried Employees	Above ₹75 lakhs	8.55%	0.35% (min ₹1,500)
Self-Employed Professionals	Up to ₹30 lakhs	8.40%	0.50% (min ₹1,500)
Self-Employed Professionals	₹30 lakhs to ₹75 lakhs	8.50%	0.50% (min ₹1,500)
Self-Employed Professionals	Above ₹75 lakhs	8.65%	0.50% (min ₹1,500)
Women Borrowers (All Categories)	All amounts	8.30% (0.05% concession)	0.35% (min ₹1,000)

How to Use the Canara Bank Home Loan EMI Calculator 2019

Our interactive calculator helps you determine your Equated Monthly Installment (EMI) based on Canara Bank’s 2019 interest rates. Here’s how to use it effectively:

1. Enter Loan Amount: Input the principal amount you wish to borrow (minimum ₹1,00,000)
2. Select Interest Rate: Choose the appropriate rate based on your borrower category from the dropdown
3. Choose Loan Tenure: Select your preferred repayment period (5-30 years)
4. Processing Fee: Select the applicable processing fee percentage
5. Calculate: Click the “Calculate EMI & Repayment Schedule” button
6. Review Results: The calculator will display:
   • Your monthly EMI amount
   • Total interest payable over the loan term
   • Total amount payable (principal + interest)
   • Processing fee amount
   • Visual repayment breakdown chart

Factors Affecting Canara Bank Home Loan Interest Rates in 2019

Several factors influenced the home loan interest rates offered by Canara Bank in 2019:

1. RBI Policy Rates: The Reserve Bank of India’s repo rate was 5.15% in December 2019, down from 6.25% at the beginning of the year. This reduction allowed banks to offer lower interest rates to customers.
2. Loan Amount: Higher loan amounts typically came with slightly higher interest rates, as seen in our rate table above.
3. Borrower Category: Salaried employees generally received better rates than self-employed professionals due to perceived lower risk.
4. Gender: Women borrowers received a special concession of 0.05% on the interest rate.
5. Credit Score: Applicants with CIBIL scores above 750 were eligible for the best rates.
6. Property Type: Loans for ready-to-move-in properties often had better rates than under-construction properties.
7. Existing Relationship: Current Canara Bank customers sometimes received preferential rates.

Comparison with Other Major Banks in 2019

To help you understand how competitive Canara Bank’s rates were, here’s a comparison with other major banks in 2019:

Bank	Minimum Rate (p.a.)	Maximum Rate (p.a.)	Processing Fee	Maximum Tenure
Canara Bank	8.30%	8.65%	0.25%-0.50%	30 years
State Bank of India	8.05%	8.50%	0.35%	30 years
Punjab National Bank	8.35%	8.80%	0.35%-0.50%	30 years
Bank of Baroda	8.30%	8.75%	0.25%-0.50%	30 years
HDFC Bank	8.35%	9.00%	0.50% or ₹3,000	30 years
ICICI Bank	8.50%	9.10%	1% of loan amount	30 years

Eligibility Criteria for Canara Bank Home Loans in 2019

To qualify for a Canara Bank home loan in 2019, applicants needed to meet the following criteria:

For Salaried Employees:

• Minimum age: 21 years at loan application, maximum 60 years at loan maturity
• Minimum net monthly income: ₹25,000 (varies by location)
• Minimum work experience: 2 years with current employer, 3 years total
• CIBIL score: 700+ (750+ for best rates)

For Self-Employed Professionals:

• Minimum age: 25 years at loan application, maximum 65 years at loan maturity
• Minimum annual income: ₹4 lakhs (varies by profession)
• Business stability: Minimum 3 years in current business
• CIBIL score: 700+ (750+ for best rates)

Property Eligibility:

• Residential properties (self-occupied or investment)
• Ready-to-move-in or under-construction properties from approved builders
• Maximum loan-to-value (LTV) ratio: 80% for loans up to ₹30 lakhs, 75% for higher amounts
• Property should be in bank’s approved location list

Documents Required for Canara Bank Home Loan in 2019

Applicants needed to submit the following documents:

For Salaried Employees:

• Identity proof (Aadhaar, PAN, Passport, Voter ID)
• Address proof (Aadhaar, Passport, Utility bills)
• Income proof (Last 3 months salary slips, Form 16, last 6 months bank statements)
• Employment proof (Appointment letter, experience certificate)
• Property documents (Sale agreement, title deed, approved plan)
• Passport size photographs

For Self-Employed Professionals:

• Identity and address proof
• Income proof (Last 3 years ITR with computation, P&L statement, balance sheet)
• Business proof (Business license, GST registration, shop establishment certificate)
• Last 12 months bank statements (personal and business)
• Property documents
• Passport size photographs

How Canara Bank Calculated Home Loan EMI in 2019

The Equated Monthly Installment (EMI) for Canara Bank home loans was calculated using the standard reducing balance method. The formula used was:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
P = Loan amount (principal)
R = Monthly interest rate (annual rate divided by 12)
N = Loan tenure in months

For example, for a ₹50,00,000 loan at 8.55% for 20 years:

• P = ₹50,00,000
• R = 8.55%/12 = 0.007125 (0.7125%)
• N = 20 × 12 = 240 months

EMI = [50,00,000 × 0.007125 × (1+0.007125)^240] / [(1+0.007125)^240 – 1] = ₹43,391

Special Schemes and Offers in 2019

Canara Bank introduced several special schemes in 2019 to attract home loan customers:

1. Canara Home Loan – Special: Offered at 8.30% for women borrowers with a processing fee of just 0.35%
2. Canara Top-Up Loan: Additional loan on existing home loan at 0.25% higher than current rate
3. Canara Balance Transfer: Special rates for transferring home loans from other banks (8.25% for limited period)
4. Canara NRI Home Loans: Special rates for Non-Resident Indians at 8.75%-9.00%
5. Canara Pradhan Mantri Awas Yojana (PMAY): Subsidized rates for eligible applicants under the government scheme

Tax Benefits on Canara Bank Home Loans in 2019

Home loan borrowers could avail significant tax benefits under the Income Tax Act, 1961:

1. Section 24(b): Deduction on interest paid up to ₹2,00,000 per annum (for self-occupied property)
2. Section 80C: Deduction on principal repayment up to ₹1,50,000 per annum
3. Section 80EE: Additional deduction of ₹50,000 for first-time homebuyers (for loans up to ₹35 lakhs)
4. Section 80EEA: Additional deduction of ₹1,50,000 for affordable housing loans (introduced in 2019 budget)

For example, if you took a home loan of ₹50 lakhs at 8.55% for 20 years in 2019:

• First year interest: ≈ ₹4,27,000
• Principal repayment first year: ≈ ₹50,000
• Total tax savings: Up to ₹2,00,000 (interest) + ₹1,50,000 (principal) + ₹1,50,000 (80EEA if eligible) = ₹5,00,000

Frequently Asked Questions About Canara Bank Home Loans 2019

1. What was the lowest home loan interest rate offered by Canara Bank in 2019?

   The lowest rate was 8.30% p.a. for women borrowers across all loan amounts.

2. Could I get a home loan from Canara Bank with a CIBIL score of 650 in 2019?

   While the minimum required score was 700, applicants with scores between 650-700 might have been considered with higher interest rates or additional conditions.

3. What was the maximum home loan amount I could get from Canara Bank in 2019?

   The maximum loan amount was typically ₹10 crore, subject to eligibility and property valuation.

4. Did Canara Bank offer fixed or floating interest rates in 2019?

   Canara Bank primarily offered floating rate home loans in 2019, though fixed rate options were available at slightly higher rates.

5. How often did Canara Bank change its home loan interest rates in 2019?

   The rates were linked to the bank’s MCLR (Marginal Cost of Funds based Lending Rate) and were typically revised quarterly, though special offers could be introduced at any time.

6. Could I prepay my Canara Bank home loan without charges in 2019?

   Yes, there were no prepayment charges for floating rate home loans. Fixed rate loans might have had prepayment penalties.

Expert Tips for Getting the Best Canara Bank Home Loan Deal in 2019

1. Improve Your Credit Score: Aim for a CIBIL score above 750 to qualify for the best rates.
2. Compare with Other Banks: Use our calculator to compare Canara Bank’s rates with other lenders.
3. Negotiate Based on Relationship: If you were an existing Canara Bank customer, you could negotiate for better rates.
4. Consider Joint Application: Applying with a co-applicant (especially a working spouse) could increase your eligibility.
5. Opt for Longer Tenure: While this increases total interest, it reduces your EMI burden.
6. Look for Special Offers: Canara Bank frequently ran limited-period offers with reduced rates or processing fees.
7. Check for Hidden Charges: Beyond interest rates, consider processing fees, administrative charges, and insurance costs.
8. Use Government Schemes: If eligible, apply under PMAY for additional interest subsidies.

Authoritative Resources on Home Loans

For more official information about home loans and interest rates, you can refer to these authoritative sources:

• Reserve Bank of India – Official Website (for monetary policy and banking regulations)
• Pradhan Mantri Awas Yojana – Official Portal (for government housing schemes)
• CIBIL – Credit Information Bureau (for credit score information)

Conclusion

Canara Bank’s home loan offerings in 2019 were among the most competitive in the market, with interest rates starting from just 8.30% for eligible borrowers. The bank provided flexible repayment options, attractive processing fees, and several special schemes to make home ownership more accessible. By using our interactive calculator, you can accurately estimate your EMI, total interest outgo, and overall repayment schedule based on Canara Bank’s 2019 rates.

Remember that while interest rates are crucial, you should also consider other factors like processing fees, prepayment charges, customer service quality, and the bank’s reputation when choosing a home loan provider. The 2019 rates from Canara Bank demonstrate how economic conditions and RBI policies directly impact borrowing costs, making it essential to stay informed about current rates and offers.

Whether you’re researching historical rates for comparison or planning to apply for a home loan, understanding Canara Bank’s 2019 offerings provides valuable insight into how home loan products are structured and what factors influence their pricing.