The Canara Bank Home Loan Repayment Process offers a variety of convenient options to suit your payment preferences. Whether you prefer paying via Net Banking, e NACH, e Mandate, Credit Card, or offline methods, Canara Bank ensures a hassle-free experience. Explore these flexible repayment choices to manage your home loan efficiently and comfortably.
How to Repay Canara Bank Home Loan Online?
To repay your Canara Bankhome loan online, please follow these steps:
Time needed: 3 minutes
- Log in to Canara Bank Net Banking with your User ID and password
- Navigate to the “Loans” section
- Select your Home Loan Account
Click on “Make Payment” or “Loan Repayment”
- Enter the EMI amount or desired repayment amount
- Choose the account from which the payment will be debited
- Confirm the transaction to complete the payment
For more detailed information, visit Canara Bank’s Official page.
Suggested Read: How to Download Canara Bank Home Loan Statement?
How to Repay Canara Bank Home Loan Offline?
To repay your Canara Bank home loan offline, follow these simple steps:
- Visit a Canara Bank Branch: Go to your nearest Canara Bank branch.
- Provide Loan Details: Tell the bank staff your loan account number.
- Make the Payment: Pay your EMI using cash, cheque, or demand draft.
- Get a Receipt: Ask for a receipt as proof of your payment.
For more details, you can call Canara Bank customer care at 1800 1030.
Check Out: A Comprehensive Guide to Home Loan Balance Transfer
Canara Bank Home Loan EMI Repayment Options
Canara Bank offers flexible home loan EMI repayment options, including online methods like Net Banking and e NACH, as well as offline payment at branches.
Standard EMI Payment Method
Canara Bank offers a standard EMI payment method for home loans, allowing borrowers to repay in fixed monthly installments throughout the loan tenure.
Key Benefits:
- Fixed EMI ensures easy financial planning.
- Hassle-free payments can be made directly from your Canara Bank account through the auto-debit facility.
- You can choose a repayment period of up to 30 years based on your financial comfort.
- There is an option to make part-prepayments to help reduce overall interest.
- Payments can be made via internet banking, mobile banking, or third-party apps.
- You can easily track your payments and loan balance online through loan statements.
Post-Dated Cheques (PDC) Method
Canara Bank allows home loan repayment through Post-Dated Cheques (PDCs), where borrowers submit cheques dated for future EMI due dates.
Key Benefits:
- Useful for borrowers without digital banking.
- EMIs are paid on predetermined dates, avoiding missed payments.
- One-time submission of multiple cheques for the loan tenure.
- Offers a paper trail for EMI payments.
- Acts as an alternative if auto-debit or online methods are unavailable.
Electronic Clearing System (ECS) or Direct Debit
Canara Bank offers home loan repayment through Electronic Clearing System (ECS) or Direct Debit, allowing automatic EMI deductions from the borrower’s bank account.
Key Benefits:
- Ensures timely EMI payments without manual intervention.
- Reduces the risk of missed or late payments.
- Convenient for salaried individuals with regular income flow.
- No need to visit the bank or submit cheques regularly.
- Maintains a good credit score through consistent repayments.
Also Read: How to Calculate the Right Prepayment Amount for Home Loans?
Standing Instructions (SI)
Canara Bank allows home loan repayment through Standing Instructions (SI), enabling scheduled EMI deductions from your Canara Bank savings or current account.
Key Benefits:
- Automates monthly EMI payments from your linked Canara Bank account.
- Ensures timely payments and avoids late fees.
- Simple one-time setup at your home branch.
- Ideal for existing Canara Bank account holders.
- Helps maintain a consistent repayment history for better credit health.
Online Bank Transfer
Canara Bank enables home loan repayment through online bank transfers like NEFT, RTGS, or IMPS for fast and flexible payment..
Key Benefits:
- Convenient repayment from any bank account.
- Supports NEFT, RTGS, and IMPS for timely transactions.
- No need to visit a branch or ATM.
- Ideal for both one-time and recurring payments.
- Instant confirmation and easy tracking through bank statements.
Mobile Banking Payment
Canara Bank offers home loan repayment through its mobile banking app, enabling quick and secure payments anytime, anywhere.
Key Benefits:
- Make EMI payments anytime, anywhere using your smartphone.
- User-friendly interface for easy navigation and transactions.
- Instant payment confirmation and digital receipts.
- Option to schedule or make one-time payments.
- Secure login and transaction authentication.
National Automated Clearing House (NACH)
Canara Bank enables home loan repayment through the National Automated Clearing House (NACH), allowing automated EMI deductions from the borrower’s bank account.
Key Benefits:
- Seamless and automated monthly EMI deductions.
- Works with accounts from any participating bank, not just Canara Bank.
- Reduces chances of missed or delayed payments.
- One-time mandate registration for hassle-free repayments.
- Supports consistent repayment history and credit score maintenance.
Cash/ Cheque Payment at Bank Branch
Canara Bank offers home loan repayment through cash or cheque deposits at any of its bank branches for added convenience.
Key Benefits:
- Easy repayment without needing online access.
- Available at all Canara Bank bank branches across India.
- Suitable for customers preferring in-person transactions.
- Instant receipt for payment confirmation.
- Helps maintain regular EMI payments even without digital banking.
Also Read: Impact of Home Loan Prepayment
Canara Bank Home Loan Repayment Options
The Canara Bank offers multiple flexible repayment options to suit the diverse needs of home loan borrowers.
- EMIs: Make regular monthly payments (EMIs) through various modes like NACH, SI, ECS, or online, with fixed due dates for easy planning and gradual reduction of the loan balance.
- Part Pre Payment: Part pre-payment allows you to pay a lump sum towards your loan principal before the due date, helping reduce the interest burden, shorten loan tenure or EMI, with no charges on floating-rate home loans.
- Foreclosure: Foreclosure lets you repay the entire outstanding loan amount before the tenure ends, helping you save on interest, clear liabilities early, and complete the process with minimal documentation.
Canara Bank Home Loan Repayment Charges
Canara Bank Home Loan Repayment Process charges include fees for prepayment, foreclosure, overdue EMIs, and other services, depending on the loan type and repayment method.
Home Loan Processing Fees and Documentation Charges:
| Charge Type | Applicable Charges |
|---|---|
| Processing Fee | 0.50% of the loan amount Minimum: ₹1,500 + GST Maximum: ₹10,000 + GST. |
| Prepayment/Foreclosure Charges | Floating Rate Loans: – Nil for individual borrowers for non-business purposes. – 2% of the prepaid amount for loans transferred to other banks/FIs. Fixed Rate Loans: – 2% of the prepaid amount for loans transferred to other banks/FIs. |
| Late Payment Charges | Overdue interest is charged for the delayed period. Specific rates are not mentioned in the available sources. |
| Revision in Repayment Schedule | 0.05% of the loan limitMinimum: ₹20,000Maximum: ₹1,00,000 |
| Copy of Documents | ₹1,000 plus actual photocopying charges. Additional ₹2,000 if a bank official’s presence is required. |
| Non-collection of Title Deeds Post-Closure | ₹100 per month, up to a maximum of ₹1,000 |
Note: Prepayment penalties are waived for Micro and Small Enterprises (MSEs) and for floating rate loans taken by individuals for non-business purposes.
For the most accurate and detailed information, please refer to the official Canara Bank Service Charges PDF.
Check Out: Canara Bank Home Loan Prepayment Calculator
Home Loan Repayment – Case Study
Example Scenario:
Mr. Ram, a self-employed professional, took a home loan of ₹40 lakhs from Canara Bank for a 15-year tenure at an interest rate of 8.25%. His initial EMI was ₹38,000.
| Scenario | EMI Amount | Tenure | Total Repayment | Savings |
|---|---|---|---|---|
| Standard EMI Repayment | ₹38,000 (fixed) | 15 years | ₹68,40,000 | – |
| With Prepayment of ₹5 Lakh | ₹38,000 (first 5 years), ₹34,000 (next 10 years) | 15 years | ₹63,60,000 | ₹4,80,000 |
By making a ₹5 lakh prepayment, Mr. Ram reduced his EMI and saved ₹4,80,000 in total repayment over the full loan tenure with Canara Bank.
Check Out: Home Loan Tax Benefits Calculator
Factors to Consider When Choosing a Home Loan Repayment Options
Choosing the right home loan repayment plan is crucial for effective financial management. Consider the following factors:
- Income and Expenses: Assess your monthly income and expenses to determine an affordable repayment amount.
- Loan Tenure: Decide between shorter tenures with higher EMIs or longer tenures with lower EMIs, balancing interest costs and monthly obligations.
- Interest Rates: Compare fixed and variable interest rates to choose one that aligns with your financial goals and risk tolerance.
- Financial Goals: Ensure your repayment plan complements your long-term financial objectives, such as savings or investments.
- Risk Tolerance: Evaluate your comfort with potential interest rate fluctuations, especially with variable rate loans.
- Prepayment and Foreclosure Charges: Check for any penalties associated with early loan repayment or foreclosure.
- Credit Score: Maintain a good credit score to access favorable interest rates and loan terms.
- Loan Type: Understand the specific terms and conditions of the loan product you choose.
- Age and Retirement Plans: Align your loan tenure with your retirement plans to ensure debt-free retirement.
- Serviceability: Ensure the loan repayments fit within your budget without causing financial strain.
Is it Better to Prepay your Home Loan or Invest?
Deciding between prepaying your home loan or investing depends on interest rates, returns on investment, and your financial goals.
| Scenario | Prepay Home Loan | Invest the Amount |
|---|---|---|
| Amount Available | ₹5,00,000 | ₹5,00,000 |
| Home Loan Interest Rate | 8.50% p.a. | N/A |
| Investment Return Rate | N/A | 12% p.a. (e.g., mutual funds) |
| Loan Tenure Left | 15 years | 15 years |
| Interest Saved (Approx.) | ₹4.2 lakhs | N/A |
| Investment Return (Approx.) | N/A | ₹18.0 lakhs (compounded annually) |
| Tax Benefits on Home Loan | May reduce with prepayment | Continue to avail if not prepaid |
| Liquidity | Funds are locked in loan repayment | Investments offer better liquidity |
| Best for | Risk-averse, prefers debt-free life | Risk-tolerant, focused on wealth creation |
Read More: Home Loan Prepayment vs. Investing
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Conclusion
Canara Bank Home Loan Repayment Process offers flexible options to suit different financial needs, allowing borrowers to reduce interest costs through prepayment or alternative payment methods. Reviewing your financial goals and consulting Canara Bank can help in making the best repayment choice.
For personalized solutions and guidance, contact Credit Dharma today!
Frequently Asked Questions
Up to 30 years or until the borrower attains 75 years of age, whichever is earlier.
You can repay via:
– Net Banking: Log in to Canara Bank Net Banking, navigate to the loan section, and make the payment.
– Mobile Banking App: Use the Canara Bank mobile app to access your loan account and repay.
– Standing Instructions: Set up automatic deductions from your Canara Bank account.
For floating rate loans, there are no prepayment charges. For fixed rate loans, a 2% charge on the prepaid amount may apply.
Yes, partial prepayments are allowed. It’s advisable to check with the bank for any applicable conditions or charges.
EMI is calculated based on the loan amount, interest rate, and tenure. You can use the Canara Bank Home Loan EMI Calculator for an estimate.
Missing an EMI can lead to penal interest charges and may affect your credit score.
Yes, changing the EMI due date is possible. You need to submit a request to the bank, and it will be processed as per their policies.
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