Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 offers affordable home loan options to eligible individuals under the government’s flagship housing scheme. With competitive interest rates, flexible EMI options, and low processing fees, it aims to make homeownership accessible. This blog covers the key details including interest rates, eligibility, and the necessary documents for application.
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Highlights
| Feature | Details |
|---|---|
| Target Groups | EWS, LIG, MIG households without pucca houses. |
| Income Criteria | EWS: ₹3 lakh, LIG: ₹3-6 lakh, MIG: ₹6-9 lakh. |
| Subsidy | Interest subsidy up to ₹1.80 lakh for eligible beneficiaries with loan tenure exceeding five years |
| Eligibility | Preference for female ownership. |
| Additional Features | Affordable rental housing, green technologies, and priority to marginalized groups. |
Suggested Read: Pradhan Mantri Awas Yojana (PMAY) Scheme Details
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Interest Rates 2025
| Feature | Details |
|---|---|
| Interest Rate | 8.05% p.a. onwards |
| Scheme Name | PMAY 2.0 (Pradhan Mantri Awas Yojana) |
| Interest Subsidy | Up to ₹1.80 lakh for eligible beneficiaries with loan tenure exceeding five years |
| Maximum Loan Amount | Up to ₹25.00 lakh (Other Cities),Up to ₹35.00 lakh (Metro Cities) |
| Minimum Loan Tenure | 5 years |
| Eligibility | Urban families from EWS, LIG, MIG categories without a pucca house anywhere in India |
Check Out: Canara Bank Home Loan Interest Rates 2025
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Eligibility Criteria
Pradhan Mantri Awas Yojana (PMAY) Urban 2.0 aims to provide affordable housing to urban populations. The eligibility criteria are as follows:
| Criteria | Details |
|---|---|
| Target Beneficiaries | Families belonging to Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) categories residing in urban areas. |
| Annual Household Income | – EWS: Up to ₹3.00 lakh – LIG: Above ₹3.00 lakh and up to ₹6.00 lakh – MIG: Above ₹6.00 lakh and up to ₹9.00 lakh |
| Housing Status | The beneficiary family should not own a pucca house (an all-weather dwelling unit) in any part of India. |
| Age Criteria | Applicants should be between 21 and 75 years of age. |
| Property Ownership | In case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the scheme. |
| Income Proof Requirements | – For salaried individuals: Salary certificate, salary slips, Form 16, and Income Tax Returns (ITRs). – For self-employed/professionals: Self-declared income certificate/affidavit for income up to ₹3.00 lakh, suitable income proofs as per existing guidelines for income above ₹3.00 lakh. |
| Loan Tenure | Maximum repayment period of 30 years or up to 75 years of age of the applicant/co-applicant whose income is considered for repayment. |
| Processing Charges | Processing charges are waived for loans sanctioned under the PMAY-U 2.0 scheme. |
| Property Insurance | Compulsory insurance of the house/flat against risks such as fire, lightning, riots, earthquakes, floods, etc. |
For more detailed information, please visit the official Canara Bank PMAY-U 2.0 page.
Read More: PMAY Eligibility Criteria
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Processing Fees
The processing fees for Pradhan Mantri Awas Yojana (PMAY) loans offered by Canara Bank:
| Income Group | Processing Fees |
|---|---|
| EWS/LIG | Processing charges are waived for loans sanctioned under the scheme. |
| MIG-I | Processing charges are waived for loans sanctioned under the scheme. |
| MIG-II | Processing charges are waived for loans sanctioned under the scheme. |
| Above Eligible Limits | Standard processing fee of 0.50% of the loan amount, with a minimum of ₹1,500 + GST and a maximum of ₹10,000 + GST. |
Note: Processing fees are subject to change and may vary based on promotional periods or individual loan agreements. For the most current information, please visit Canara Bank’s official PMAY page.
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Other Fees and Charges
The Other Fees and Charges applicable under the Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) scheme:
| Fee Type | Details |
|---|---|
| Processing Charges | Nil for eligible loans under PMAY-U 2.0 (EWS, LIG, MIG-I, MIG-II). |
| Margin | – New House/Flat: 10% – Old House/Flat (up to 10 years old): 10% – Old House/Flat (more than 10 years old): 25% |
| Property Insurance | Compulsory insurance of the financed property against fire, earthquake, flood, etc. |
| Guarantee Coverage | Housing loans up to ₹20 lakh sanctioned to eligible EWS and LIG beneficiaries are covered under the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH). |
| Prepayment Charges | Nil for floating rate loans sanctioned to individuals. |
| Penal Interest | 2% over the applicable interest rate for overdue amounts. |
| Legal & Valuation Charges | As per actuals collected from borrowers (if applicable). |
| Documentation Charges | As per bank guidelines (typically nominal). |
Check Out: Canara Bank Home Loan Eligibility Calculator
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 Documents Required
To apply for a Pradhan Mantri Awas Yojana (PMAY) 2.0 loan through Canara Bank, the following documents are required:
| Document Category | Required Documents |
|---|---|
| Identity Proof | Aadhaar Card, Passport, or any other certificate from a statutory authority. |
| Address Proof | Aadhaar Card, Passport, Driving License, Telephone Bill, Ration Card, Election Card, or any other certificate from a statutory authority. |
| Income Proof | – Salary slips for the last 3 months – Form 16 for the last 2 years. – Last 6 months bank statements (for salaried individuals). – Income Tax Returns (ITR) for the last 3 years (for self-employed individuals). |
| Property Documents | – Title Deeds of the Property (last 13 years) – Encumbrance Certificate (last 13 years) – Khata Certificate/Extract – Sale Agreement – Allotment Letter – Occupancy Certificate (if applicable) |
| Photographs | Passport-size photographs of the applicant and co-applicant(s) |
| Other Documents | – Aadhaar details of family members – Active bank account details linked with Aadhaar – Caste/Community Certificate (if applicable) – Land documents (in case of Beneficiary-Led Construction) – Undertaking confirming eligibility (as per prescribed format) |
Please ensure all documents are self-attested. For a comprehensive list and any additional requirements, refer to Canara Bank’s official guidelines.
Also Read: PMAY subsidy 2025
How to Apply to Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0?
Time needed: 3 minutes
To apply for the Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0), follow these steps:
- Check Eligibility
Ensure you meet the eligibility criteria based on income group (EWS, LIG, MIG-I, MIG-II), do not own a pucca house, and meet other conditions as specified by Canara Bank.
- Gather Required Documents
Collect necessary documents such as identity proof, address proof, income proof, property documents, photographs, and other relevant documents.
- Obtain Application Form
Visit the nearest Canara Bank branch to obtain the PMAY-U 2.0 application form.
- Fill Out the Application Form
Complete the application form with accurate personal, income, and property details.
- Submit the Application
Submit the filled application form along with the required documents to the bank representative.
- Verification Process
The bank will verify the submitted documents and assess your eligibility for the PMAY-U 2.0 scheme.
- Loan Processing
Upon successful verification, the bank will process your home loan application under the PMAY-U 2.0 scheme.
- Loan Sanction and Disbursement
If approved, the loan will be sanctioned, and the subsidy amount will be credited as per the scheme guidelines.
For more detailed information, please visit the official Canara Bank PMAY-U 2.0 page.
Also Read: Top Mistakes to Avoid When Applying for PMAY
Canara Bank Home Loan: Other Products
Canara Bank offers multiple home loan schemes, each with its own interest rate structure and features.
| Home Loan Scheme | Interest Rate |
|---|---|
| Canara Bank Housing Loan | 8.75% p.a. onwards |
| Canara Bank Housing Cum Solar Loan | 8.75% p.a. onwards |
| Canara Bank Kuteer Loan | 8.75% p.a. onwards |
| Canara Bank Housing loan to Agriculturists | 8.75% p.a. onwards |
| Canara Bank Home Loan for NRIs | 8.75% p.a. onwards |
| Canara Bank Approved Housing Projects | 8.75% p.a. onwards |
Source: Canara Bank Official Website – Interest Rate Circular
Compare Home Loan Interest Rates by Top Banks
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.00% p.a. onwards | 8.00% p.a. onwards | 8.00% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% onwards | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Check Out: How to Easily Check Your PMAY Status with Aadhaar
Get the Best Home Loan Offers with Credit Dharma
Credit Dharma is your trusted partner for securing the best Home Loan offers, with over ₹500 Cr+ loans handled and partnerships with 20+ leading banks. We provide exclusive access to the lowest interest rates and a seamless, digital process with fast approvals in just 1-2 weeks, backed by lifetime support from our home loan experts.
Why choose Credit Dharma? We provide:
- Lowest Interest Rates: Save more with every EMI.
- Maximum Funding: Get up to 100% funding for your dream home.
- Simple & Digital Process: No tedious paperwork or branch visits.
- Expert Guidance: Lifetime support from our team of specialists.
Compare, choose, and secure the best Home Loan offer with Credit Dharma — your home loan journey starts here!
Conclusion
Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 offers a great opportunity for eligible individuals to own their homes with attractive interest subsidies and minimal processing fees. With easy access to affordable loans under various income categories, it’s an ideal choice for many.
For personalized assistance with your home loan, consider scheduling a free consultation call with Credit Dharma today.
Frequently Asked Questions
Families belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle-Income Group (MIG) categories, residing in urban areas, and not owning a pucca house anywhere in India are eligible.
– EWS: Annual household income up to ₹3 lakh.
– LIG: Annual household income between ₹3 lakh and ₹6 lakh.
– MIG: Annual household income between ₹6 lakh and ₹9 lakh
Eligible beneficiaries can avail an interest subsidy of up to ₹1.80 lakh for loan tenures exceeding five years.
The scheme covers:
– Purchase of a ready-built house/flat.
– Construction of a house/flat.
– Purchase of a site and construction of a house.
The maximum loan amount is ₹25 lakh, with a repayment tenure of up to 30 years or until the applicant/co-obligant reaches 75 years of age, whichever is earlier.
Processing charges are waived for loans sanctioned under the PMAY-U 2.0 scheme.
Applicants can apply by visiting the nearest Canara Bank branch, obtaining the application form, filling it out with accurate details, and submitting it along with the required documents.
HDFC Home Loan
SBI Home Loan
