FAQs on Housing Loan to Agriculturists
Who are eligible for this Housing Loan?
 Agriculturists, Dairy and Allied activity Farmers, Planters & Horticulturists are
eligible.
 Agriculturists owning and cultivating agricultural lands of more than 5 acres
Irrigated lands / 10 acres of Dry lands in their name/s.
 In case of Agriculturists engaged in Dairy farming, Poultry farming, Plantation
Crops and Horticultural produce, the minimum land holding criteria does not
apply. Instead such category of borrowers should have minimum gross annual
income is Rs.5.00 Lakhs
 Existing customer of our Bank with satisfactory dealings with us for the last two
years.(This condition can be relaxed in select cases)
 The age of the borrower or at least one of the joint borrowers should not be
more than 55 years at the time of availing the loan.
What are the purposes for which loan can be availed?
Loan shall be considered for
a. Purchase of a ready built house / flat.
b. Construction of house / flat.
c. Purchase of a site and construction of a house thereon. However, loan for the
purchase of only site shall not be considered.
d. For taking over of the HL liability from commercial banks (both public sector
and private sector banks) including SBI and its subsidiaries and foreign banks.
e. For acquiring second house / flat where the borrower is already having a house
/ flat with or without loan.
The property to be acquired or the land on which construction is proposed should be
non agricultural, having valid documents for usage for Housing / Non agricultural
purposes. It should be preferably in Urban / Semi Urban and growing townships, i.e.
loans will not be given for construction or purchase of houses on Agricultural Lands.
What is the eligible quantum of loan?
Maximum eligible quantum of loan shall be 4 times of average annual Income as per
recorded proof.
Whether income of family members can be reckoned for arriving at quantum
of loan?
In case the income is not sufficient to meet the housing loan and if there are other
members in the family who own separate Agricultural lands and have regular income,
they can join the loan as co-borrowers.
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Whether non-Agricultural income can be considered for reaching at eligible
quantum of loan & repayment capacity?
Yes, Where borrowers or any of the joint borrower/s are having non-agricultural income
of regular nature (either through salary or through business or profession), the same
may also be reckoned for determining the maximum eligible loan quantum and
repayment capacity subject to that income being declared in ITAR or production of
documentary evidence of that income acceptable to the Bank.
Is there any criterion with respect to repayment capacity?
Minimum Net Take Home (NTH) of the borrower after meeting the existing loan
commitments & proposed EMI should not be less than 40% of net income.
Whether income proof is required to be submitted?
Yes,It should be preferably ITR. However in case Income Tax returns are not available,
income certificate issued by the Tahsildar/Mandal Revenue Officer/District Revenue
Authorities or any competent authority may be submitted as proof of income.
What is the margin?
Margin is stipulated on the Basic Project Case as follows:
For Loan upto Rs. 20.00 Lcas---20%
For Loan above Rs. 20.00 Lacs & upto Rs. 75.00 Lacs--20% in case of new House/Flat
& 25% in case of old House/Flat.
For Loan above Rs. 75.00 Lacs--25%
What are the items that will be included in the project cost?
Project cost will include purchase price of land/house/flat, cost of construction.
However, expenses incurred towards stamp duty, registration & other documentation
charges which do not add to value of the property will not be considered for project
cost.
Is there any time limit within which construction has to be commenced?
Yes, Where housing loan is granted for purchase of site and construction of house
thereon, construction of the house to be commenced within a maximum period of
twelve months from the date of disbursement of the house loan. In the absence of
which,ROI as applicable( Presently Base Rate of Bank+ 6%) will be charged from the
date of disbursement till the start of construction.
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What is the applicable rate of interest?
Upto Rs. 75.00 lacs : Base Rate i.e., @10.20%p.a. (floating) Presently
Above Rs.75.00 Lacs : Base Rate +0.20% i.e., @10.40% p.a.(floating) Presently
In case of Housing loan for 3rd unit and above the rate of interest shall be 1% more
than the rate mentioned above.
What security has to be provided?
EMT/Registered Mortgage of the House/Flat to be purchased/constructed is taken as
security.
Whether any guarantee has to be given?
Bank may stipulate co-obligation / personal guarantee of a person acceptable to
the Bank on case to case basis.
In case of loan for flat under construction, if putting through of mortgage is
immediately not possible, then what is the procedure?
Then in case of only those projects which are approved by our Bank, loan can be
considered provided TRIPARTITE AGRREEMENT i.e. agreement between Builder,
Borrower and Bank is executed & a suitable guarantee of a person acceptable to Bank
is furnished.
What are the repayment conditions?
Maximum 30 years including repayment holiday subject to ensuring that the entire loan
is cleared before the borrower / youngest of the borrowers attains the age of 65 years.
What is the periodicity of repayment?
The periodicity of repayment i.e., monthly / half yearly / yearly shall be fixed,
depending upon the activity carried on / income stream / cropping pattern.
Whether pre-payment penalty is charged?
No Prepayment penalty shall be charged.
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What are other charges payable?
Processing Charges:
0.5% of loan amount Min. Rs. 500/- & Max. of Rs.10000/-( Presently they are waived
for sanctions till 31.01.2015 provided the party avails the loan before 28.02.2015)
Inspection Charges:
Upto loan of Rs. 10.00 Lacs--Rs. 200/- per inspection with a maximum of Rs. 600/- per
year.
In case of Loan above Rs. 10.00 Lacs--Rs. 300/- per inspection or actual expenses
incurred whichever is higher.
All out of pocket expenses like Outsourcing Charges, CIBIL Charges, CERSAI Charges,
Insurance premia, LSR Charges, Valuation Charges to be borne by the borrower.
Is there any provision of life insurance of proposed Housing Loan borrower
as in case of death of borrower during the currency of loan, his/her family
suffers a lot of financial hardship in meeting the payment obligations of the
loan ?
Yes, Our Bank has come out with a life insurance cover for housing loan customers
under Creditors Protection Plan of M/s. Canara HSBC Oriental Bank of Commerce Life
Insurance Company Limited – Group Insurance. For more details contact your branch.
Whether any system of in-principal sanction of Housing Loan is prevalent in
Bank?
Yes. IN-PRINCIPLE SANCTION FOR HOUSING LOANS” is a written communication to an
eligible customer through a simple letter conveying in-principle (provisional) sanction of
Housing Loan, subject to the customer satisfying all the terms and conditions applicable
for Housing loans. The provisional “in-principle” sanction is also subject to acceptability
of the property proposed to be purchased by the prospective borrower.
For more details on this aspect, you may contact nearest Canara Bank branch.
Is there any time period within which EMT (deposit of registered sale deed)
has to be completed from the date of grant of housing loan, permitted for
purchase of site and construction thereof (composite loan) / ready built
house.
A maximum period of six months is stipulated for completion of EMT (deposit of
registered sale deed) from the date of grant of housing loan permitted for purchase of
site and construction thereof (composite loan) / ready built house. Penalty at 2% p.a.
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on the sanctioned amount after the expiry of six months till completion of EMT (deposit
of registered sale deed) / Delayed submission of registered sale deed is stipulated
except in case the plot is allotted by the Government/Housing Board and similar
autonomous bodies.
This is not applicable for flats under construction
What are the benefits to Housing Loan borrowers under Income Tax Act
1961?
Income Tax Act, 1961, provides for the benefits of deduction (u/s 24) in respect of the
amount payable by way of interest (upto Rs. 2.00 Lacs) on housing loan and rebate
(u/s 88) in respect of repayment of principal amount (max. 1.5 Lacs) of housing loan.
Can I submit online application for housing loan?
Yes; For submitting online loan application, you have to log on to
www.canarabank.com;You can also track the status of your loan application through
our website.
What are other facilities available in this product?
 First/Joint applicant will be provided with free Credit Card with suitable limits as
per their income levels at the time of opening the loan accounts itself.
 The borrower will be provided with IMB(Internet & Mobile Banking) facility for
receiving Pass sheets and interest paid certificates on line.
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