Can Fin Homes Limited was set up in 1987, the "International Year for Shelter for the Homeless," by Canara Bank in association with reputed financial institutions, including HDFC and UTI. The first bank sponsored Housing Finance Company in India; Can Fin Homes has emerged as one of the leading players in the country's home loan segment. However, with time, a lot of companies came into the market, giving a rise to competitiveness. With over 100 years of experience and 2500 branches in India, Canara Bank extends to people the one of the most competitive rates, coupled with convenient procedure. To know more about the types of home loans and the procedure involved, read through the following lines.

Types Of Home Loan
Canara Bank offers home loans for construction/purchase of house/flat and also for renovation of existing flat/house. The bank offers a maximum loan of Rs. 1 Crore- depending on the borrower's repayment capacity. The loan repayment period is 5 - 10 years for site loans and 5 - 20 years for other loans. Canara Bank home loans are offered for purchase or construction of any residential house or flat. The bank also provides finance for companies or corporations or Societies for purposes of construction or purchase of residential houses or flats. Canara Bank provides loans to individuals for site purchase, where the allotment of site shall be for the residential purpose by State Development Agencies, Muncipal Bodies, Associations, etc.

The Composite Loan Scheme of Canara Bank provides finance for both for the purchase of land from individuals/private builders and further construction thereon on the land financed by the bank. The maximum permissible period for purchase and construction is 36 months. The Bank offers loans for major repair/renovation/extension work of an existing residential building. Extension includes extending the existing building vertically and / or horizontally putting up of staircase, constructing prayer room/bathroom/kitchen/toilet/reading room extra room and other similar work.

Loan Amount

* 4 years' of gross salary to salaried individuals.
* 4 years' gross annual income to individuals engaged in business or to self-employed persons.
* For NRIs up to 2 years' gross income and selectively up to 3 years' gross income.
* Selectively loan up to 5 years' gross salary/ income also permitted subject to a maximum of: Rs. 50 Lacs for purchase / construction of house / flat. (Loan is also granted up to Rs. 1 Crore selectively.)
* Rs. 7.5 Lacs for repairs / renovations / additions to the existing house / flat
* Balance Sheet and P&L Account for the past three years (in case of self-employed)

Contribution Made By Individual

New house / Flat Old house/Flat
Loans upto Rs.20 lacs 15% 20%
Loans above Rs.20 lacs 20% 25%
Margin 25 % 25 %
Documents Required

* Stipulated Loan Application with 2 passport size photos of applicant / guarantor
* Sale Deed
* Agreement for Sale
* Copy of the approved plan for the proposed construction / extension / addition
* Detailed cost estimate / valuation report from Bank's Panel Chartered Engineer / Architect
* Allotment letter of Co-operative Housing Society / Apartment Owners' Association / Housing Board / NOC from the Society / Association / Builders / Housing Board
* Legal Scrutiny Report, EC for the past 13 years, Property Tax paid receipt, Khata and permission for mortgage, wherever necessary
* Salary Certificate and Form No. 16 (in case of salaried persons)
* IT Returns filed for the past two years (in case of non-salaried persons)
* A brief note on the nature of business, year of establishment, type of organization, etc., (in case of self-employed)

Processing Charges & Prepayment
The bank charges 0.50% of the loan amount, minimum of Rs. 500 and of Rs. 10,000. There is neither any hidden cost nor any application fee charged. In case of prepayment of the loan, there is no penalty levied on to the individual, except in case of takeover of the loan, by other bank/financial institution.