How Would Canara Bank Home Loan Interest Rates Influence Your Repayment?

Canara Bank is one of the leading public lenders in the business of providing custom home loans. You can apply for a loan here to purchase or construct a new flat, in addition to repairing, renovating and extending the existing housing units. Not only that, you can even purchase a plot and construct a home on the same. Amidst all, it’s the interest rate that grabs most of the attention, isn’t it? Therefore, it is vital to check in advance the effects of Canara Bank Home Loan interest rates to be in good stead when the repayment finally kicks off. The article lets you do just that. So, keep reading.

An Overview on Canara Bank Home Loan Interest Rates

Canara Bank offers home loans at interest rates benchmarked to the 1-year MCLR, which currently is 8.70%. The Marginal Cost of Lending Rate (MCLR), as you would know, changes based on the variation in the bank’s cost of funds and other aspects. The MCLR is added with a spread of 5-25 basis points to arrive at the actual interest rate on which the debt is likely to be serviced. With that being kept in mind, the interest rate ranges from 8.75%-8.95% per annum. The rates are also dependent on the gender and the loan amount. Women borrowers applying for loans up to ₹30 lakhs would be given at an interest rate of 8.75%. The same loan amount for other borrowers come at 8.80% per annum. Loans above ₹30 lakhs to ₹75 lakhs are priced at 8.85% and 8.90% for male and female borrowers, respectively. Loans above ₹75 lakhs would come at 8.90% for male borrowers and 8.95% for female borrowers.

Canara Bank Home Loan Calculator

Now that you know the interest rates, it’s time to check the effect of the same through Canara Bank Home Loan EMI Calculator. The calculator computes the installment using the loan amount, tenure and rate of interest. You just need to enter these three variables in the calculator to calculate the Equated Monthly Installment (EMI), which is a combination of both interest and principal towards a loan.

So, if the interest rates are greater, be ready to pay more through the EMI and vice-versa. But, you also need to choose the tenure wisely as a very long one can take out a massive chunk of interest from your pocket. Yes, the amount of installment remains low. But the massive interest outgo is simply not advisable. Shorter tenures curb the interest liability at the expense of higher EMI. And so, you need to see whether you can pay the increased EMI in a bid to lower the interest outgo or not. Ideally, you must choose a relatively shorter tenure that can keep both the EMI and interest outgo under control.

Canara Bank Home Loan Apply Online

You can apply for the loan by taking a printout of Canara Bank Home Loan application form, filling the details sought in the form and submitting the same along with relevant documents to the nearest bank branch. The bank, subsequent to being satisfied with the details, would give an in-principle approval to the loan. The property, which you want to buy, will be legally and technically validated before the final approval comes.