Canara Bank offers home loans in 2025 with rates starting at 8.05% p.a. for salaried and self-employed individuals. With flexible terms, quick approvals, and minimal documentation, Canara Bank caters to diverse needs like purchasing, constructing, or renovating homes. Rates are tailored according to credit score, loan amount, and tenure to ensure affordability.
Canara Bank Home Loan Interest Rates by Employment
Canara Bank Home Loan Interest rates for 2025 will start from 8.40% per annum for salaried employees and for self employed borrowers. It is due to income consistency, credit score and repayment ability.
Canara Bank Home Loan Interest Rates for Salaried Employees
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Home Loan For Salaried | 8.05% p.a. onwards |
Canara Bank Home Loan Interest Rates for Self Employed
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Home Loan For Self Employed | 8.05% p.a. onwards |
Canara Bank Home Loan Interest Rates for NRIs
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Home Loan For NRIs | 8.05% p.a. onwards |
Also Read: Canara Bank EMI Calculator
Canara Bank All Schemes Home Loan Interest Rates
Canara Bank presents a range of home loan schemes in 2025, with interest rates beginning at 8.40% p.a., designed for salaried, self-employed, and NRI customers. The loans feature flexible tenures, easy documentation, and fast approvals.
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Canara Bank Housing Loan | 8.05% p.a. onwards |
| Canara Bank Housing Cum Solar Loan | 8.75% p.a. onwards |
| Canara Bank Kuteer Loan | 8.05% p.a. onwards |
| Canara Bank Housing loan to Agriculturists | 8.05% p.a. onwards |
| Canara Bank Home Loan for NRIs | 8.70% p.a onwards |
| Canara Bank Approved Housing Projects | 8.05% p.a. onwards |
All Schemes Offered by Canara Bank: A Detailed Overview
Explore all the loan schemes offered by Canara Bank home loans, business loans, personal financing and many more planned to suit numerous financial needs through flexible terms.
Canara Bank Housing Loan
Canara Bank Housing Loan offers affordable home financing with competitive interest rates, flexible repayment options, and long tenures. It is available for salaried and self-employed individuals to purchase, construct, or renovate a home.
| Features | Details |
|---|---|
| Interest rate | 8.05% p.a. onwards |
| Maximum loan amount | Up to Rs. 50 lakh |
| Loan tenure | Up to 30 years |
| Processing fees | 0.50% (Min Rs.1500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Canara Bank Housing Cum Solar Loan
Canara Bank Housing Cum Solar Loan offers financing for home purchase, construction, or renovation, along with funding for solar panel installation, promoting sustainable living.
| Features | Details |
|---|---|
| Interest rate | 8.75% p.a. onwards |
| Maximum loan amount | Up to Rs. 15 lakh |
| Loan tenure | Up to 20 years |
| Processing fees | 0.50% (Min Rs.1500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Canara Bank Kuteer Loan
Canara Bank Kuteer Loan provides financial assistance for home construction, renovation, or extension, catering to individuals seeking affordable housing solutions.
| Features | Details |
|---|---|
| Interest rate | 8.05% p.a. onwards |
| Maximum loan amount | Up to Rs. 10 lakh |
| Loan tenure | Up to 30 years |
| Processing fees | 0.50% (Min Rs.1500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Canara Bank Housing loan to Agriculturists
Canara Bank Housing Loan for Agriculturists offers financial support to farmers for constructing, purchasing, or renovating a house, with flexible repayment options.
| Features | Details |
|---|---|
| Interest rate | 8.05% p.a. onwards |
| Maximum loan amount | Up to Rs. 50 lakhs |
| Loan tenure | Up to 30 years |
| Processing fees | 0.50% (Min Rs.1500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Canara Bank Home Loan for NRIs
Canara Bank Home Loan for NRIs provides financing for Non-Resident Indians to purchase, construct, or renovate homes in India. It offers competitive interest rates, flexible repayment options, and hassle-free processing.
| Features | Details |
|---|---|
| Interest rate | 8.05% p.a. onwards |
| Maximum loan amount | 4 times of Annual Gross Income |
| Loan tenure | Up to 30 years |
| Processing fees | 0.10% (Min Rs.500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Canara Bank Approved Housing Projects
Canara Bank Approved Housing Projects consist of verified residential developments eligible for home loan financing, ensuring secure and hassle-free property investments.
| Features | Details |
|---|---|
| Interest rate | 8.05% p.a. onwards |
| Maximum loan amount | Up to Rs. 75 lakh |
| Loan tenure | Up to 30 years |
| Processing fees | 0.50% (Min Rs.1500/- +GST and Max. Rs.10,000/- +GST) |
| Eligibility | New and Existing Bank Customers |
Read More: Canara Bank Home Loan Eligibility Checklist
How Does Reserve Bank of India (RBI) Repo Rate Impact Home Loan Interest Rates?
The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. It acts as a benchmark for the economy, influencing liquidity and credit availability. For example, a lower repo rate reduces banks’ borrowing costs, encouraging them to lend more.
Direct Impact on Home Loan Rates
- Rate cuts reduce borrowing costs : When the RBI lowers the repo rate, banks can borrow funds at cheaper rates, potentially reducing home loan interest rates
- Example from 2025 : In February 2025, the RBI reduced the repo rate by 25 basis points to 6.25%, followed by another cut to 6%.These moves aimed to stimulate economic growth by making loans more affordable.
Transmission to Borrowers
- Partial or delayed pass-through : Banks may not immediately pass the full benefit of repo rate cuts to borrowers. For instance, after the February 2025 cut, lenders gradually adjusted home loan rates, with potential EMIs dropping by ₹500–₹1,000 per lakh
- Dependence on bank policies : Banks factor in operational costs, profit margins, and market competition when adjusting rates. For example, SBI and HDFC reduced rates to 8.25–8.5% post-February 2025 cuts, but smaller lenders might lag.
Key Outcomes for Home Loan Borrowers (2025)
- Lower EMIs : A 25-basis-point repo rate cut could reduce monthly EMIs for existing and new borrowers if banks adjust their rates
- Potential sub-8% rates : Analysts suggest home loan rates might dip below 8% in 2025 due to cumulative repo rate reductions, benefiting first-time buyers and refinancers
Inflation and Repo Rate Dynamics
- High inflation : The RBI typically raises the repo rate to curb inflation, increasing home loan costs.
- Low inflation : Falling inflation allows the RBI to cut rates, easing the burden on borrowers.
Suggested Read: When Does Your Home Become a Non Performing Asset?
How to Get Lowest and Best Home Loan Interest Rates at Canara Bank
- Check your credit report: the tradeoff is that the higher your score is, the greater chance to qualify for a lower rate of interest.
- Comparison: Rate should be Canara Bank interest rate Compare it with others too.
- Earn steady income to hand it over: it is more vital to be drawing a salary over time.
- Decide to Choose the Best-Wanted Loan: Fixed interest is good because it means relaxation, yet floating rates typically start lower.
- Opt for the higher tenure: The duration of the loan becomes longer so that the EMI decreases while the total amount of interest increases.
- Make Profitable Investment: Cut down the loan amount by major payment options and receive improved rates.
- Express Interest in Special Offers: Especially for the female and Canara Bank account holders, there are no special offers for female customers and Canara Bank account holders presently.
- Get a discount on higher loan amounts: For loans drawn in higher amounts, the predominant factors are what reduction has been given on it.
- Check Loan Attachment: Look to swap or refinance in case of better loan terms available anymore.
- Negotiate on Processing Charges: With reference to some of those charges in terms of variations, you need to bargain out the ‘take-it-or-leave-it’ stance adopted by them.
Types of Home Loan Interest Rates
| Interest Rate Type | Definition | Pros | Cons |
|---|---|---|---|
| Fixed | Rate remains constant throughout a predetermined period or entire tenure. | – Predictable EMIs for budgeting- Protection against rising interest rates | – Typically higher rates compared to floating- No benefit if market rates go down |
| Floating (Variable) | Linked to market benchmarks (e.g., Repo Rate, MCLR) and changes over time | – Often cheaper when rates fall- Can partly or fully prepay with lower penalties | – EMIs fluctuate with market conditions- Costs may rise if rates increase |
| Hybrid | Combination of fixed and floating phases. | – Stability in the initial fixed period- Potential cost savings in the variable phase | – Transition from fixed to floating can carry uncertainties- May incur a shift-related fee |
Suggested Read: All Banks Home Loan Interest Rates 2025
Factors Affecting Canara Bank Home-Loan Interest Rate
| Factor | How It Affects the Interest Rate |
|---|---|
| Credit score & repayment history | Higher credit scores & consistent repayments often lead to lower rates |
| Loan amount & tenure | Larger loan amounts or extended tenures can raise rates due to increased risk |
| Type of interest rate (fixed or floating) | Floating rates fluctuate with market changes; fixed rates remain constant but can be higher initially |
| Market & repo rate trends | Rates typically rise or fall in line with the central bank’s policy decisions |
| Employment & income stability | Steady job & robust income can fetch more favorable rates |
| Loan-to-value (LTV) ratio | A lower LTV (larger down payment) signals reduced risk, helping secure lower rates |
| Banking relationship | Good track record or existing relationship with the bank may result in preferential rates |
Read More: Canara Bank Customer care
How are Home Loan Interest Rates Calculated?
Home loan interest rates typically start with a benchmark – for example, the repo-linked lending rate (RLLR) or MCLR. Your bank sets its own spread above this reference to cover operational and credit-related risks. That margin, in turn, depends heavily on your credit score, income stability, loan amount, and the overall risk perceived by the lender.
In addition, economic policies (like changes in the repo rate announced by the central bank) can cause benchmark rates to move up or down, directly influencing what you end up paying over time.
Suggested Read: RLLR vs. MCLR vs. PLR
How to Download Canara Bank Home Loan Interest Certificate Online?
Time needed: 3 minutes
- Visit Canara Bank Website
- Log in to your internet banking account using your credentials.
- Navigate to the “Loans” section and select “Home Loan.”
- Find and select the option for “Interest Certificate” for the required financial year.
- The certificate will be available for download or print.
The interest certificate will include details of the interest paid on your home loan during the financial year, which is useful for tax purposes.
Will Home Loan Interest Rates Go Down in 2025?
Yes, home loan interest rates in India have already started declining in 2025, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points (bps) on April 9, 2025 .
This reduction, combined with a similar cut in February 2025, brings the cumulative repo rate decrease to 50 bps this year, lowering the rate from 6.25% to 6% .
These cuts directly impact floating-rate home loans linked to the repo rate, which most banks use as their external benchmark.
EMI vs. Tenure Reduction: Which Saves More?
Banks typically shorten the loan tenure while keeping EMIs unchanged during rate cuts. Borrowers can opt for this or request an EMI reduction.
For example, a Rs 50 lakh loan at 8.25% (post-February cut) will now cost 8%, lowering monthly EMIs by Rs 777 (from Rs 42,603 to Rs 41,826).
- Lower EMIs : Immediate cash flow relief (e.g., saving Rs 777/month). Total interest saved over 20 years: ~Rs 1.85 lakh .
- Shorter Tenure : Retaining the original EMI shaves 10 months off the loan term, saving ~Rs 4.36 lakh in interest. Experts recommend this option for 234% higher savings compared to EMI cuts.
Suggested Read: What is Reverse Repo Rate?
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Conclusion
The Canara Bank offers lower Home Loan Interest Rates with attractive flexible options, partnering with finance seekers to offer affordable and acceptable financing.
Frequently Asked Questions
Yes, Canara Bank is a public sector bank owned by the Government of India.
To reduce your home loan interest rate with Canara Bank, consider negotiating with the bank, improving your credit score, or opting for a balance transfer to another lender offering lower rates.
Nominal processing fee of 0.50% on the loan amount with a Minimum of Rs. 100/- & Maximum of Rs. 500/- is charged.
The eligible home loan amount is up to 4 times your gross annual income, with a nominal 0.50% processing fee and no prepayment charges for floating rate loans.
Home loan approval in Canara Bank typically takes around 3 to 7 working days, depending on documentation and processing.
The current home loan interest rate in Canara Bank starts at 8.40% per annum, subject to eligibility and terms.
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