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Home > Home Loan > Canara Bank Home Loan > Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 | Check Interest Rates, EMI, Eligibility, Processing Fees, and Documents Required

Canara Bank Pradhan Mantri Awas Yojana – Urban 2.0 | Check Interest Rates, EMI, Eligibility, Processing Fees, and Documents Required

April 30, 2025
Table of Contents

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

FeatureDetails
Target GroupsEWS, LIG, MIG households without pucca houses.
Income CriteriaEWS: ₹3 lakh, LIG: ₹3-6 lakh, MIG: ₹6-9 lakh.
SubsidyInterest subsidy up to ₹1.80 lakh for eligible beneficiaries with loan tenure exceeding five years
EligibilityPreference for female ownership.
Additional FeaturesAffordable 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

FeatureDetails
Interest Rate8.05% p.a. onwards
Scheme NamePMAY 2.0 (Pradhan Mantri Awas Yojana)
Interest SubsidyUp to ₹1.80 lakh for eligible beneficiaries with loan tenure exceeding five years
Maximum Loan AmountUp to ₹25.00 lakh (Other Cities),Up to ₹35.00 lakh (Metro Cities)
Minimum Loan Tenure5 years
EligibilityUrban 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:

CriteriaDetails
Target BeneficiariesFamilies 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 StatusThe beneficiary family should not own a pucca house (an all-weather dwelling unit) in any part of India.
Age CriteriaApplicants should be between 21 and 75 years of age.
Property OwnershipIn 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 TenureMaximum repayment period of 30 years or up to 75 years of age of the applicant/co-applicant whose income is considered for repayment.
Processing ChargesProcessing charges are waived for loans sanctioned under the PMAY-U 2.0 scheme.
Property InsuranceCompulsory 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 GroupProcessing Fees
EWS/LIGProcessing charges are waived for loans sanctioned under the scheme.
MIG-IProcessing charges are waived for loans sanctioned under the scheme.
MIG-IIProcessing charges are waived for loans sanctioned under the scheme.
Above Eligible LimitsStandard 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 TypeDetails
Processing ChargesNil 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 InsuranceCompulsory insurance of the financed property against fire, earthquake, flood, etc.
Guarantee CoverageHousing 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 ChargesNil for floating rate loans sanctioned to individuals.
Penal Interest2% over the applicable interest rate for overdue amounts.
Legal & Valuation ChargesAs per actuals collected from borrowers (if applicable).
Documentation ChargesAs 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 CategoryRequired Documents
Identity ProofAadhaar Card, Passport, or any other certificate from a statutory authority.
Address ProofAadhaar 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)
PhotographsPassport-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:

  1. 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.

  2. Gather Required Documents

    Collect necessary documents such as identity proof, address proof, income proof, property documents, photographs, and other relevant documents.

  3. Obtain Application Form

    Visit the nearest Canara Bank branch to obtain the PMAY-U 2.0 application form.

  4. Fill Out the Application Form

    Complete the application form with accurate personal, income, and property details.

  5. Submit the Application

    Submit the filled application form along with the required documents to the bank representative.

  6. Verification Process

    The bank will verify the submitted documents and assess your eligibility for the PMAY-U 2.0 scheme.

  7. Loan Processing

    Upon successful verification, the bank will process your home loan application under the PMAY-U 2.0 scheme.

  8. 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 SchemeInterest Rate
Canara Bank Housing Loan8.75% p.a. onwards
Canara Bank Housing Cum Solar Loan8.75% p.a. onwards
Canara Bank Kuteer Loan8.75% p.a. onwards
Canara Bank Housing loan to Agriculturists8.75% p.a. onwards
Canara Bank Home Loan for NRIs8.75% p.a. onwards
Canara Bank Approved Housing Projects8.75% p.a. onwards

Source: Canara Bank Official Website – Interest Rate Circular


Compare Home Loan Interest Rates by Top Banks

BankUp to Rs. 30 LakhAbove Rs. 30 Lakh to Rs. 75 LakhAbove Rs. 75 Lakh
SBI Bank8.00% p.a. onwards8.00% p.a. onwards8.00% p.a. onwards
HDFC Bank8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
LIC Bank8.50% – 10.35% p.a.8.50% – 10.55% p.a.8.50% – 10.75% p.a.
ICICI Bank8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
Kotak Mahindra Bank8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
Punjab National Bank8.50% – 11.05% p.a.8.50% – 11.05% p.a.8.50% – 11.05% p.a.
Bank Of Baroda8.40% onwards8.40% – 10.65% p.a.8.40% – 10.90% p.a.
Bajaj Housing Finance8.50% p.a. onwards8.50% p.a. onwards8.50% p.a. onwards
Axis Bank8.75%-10.30% p.a.8.75%-10.30% p.a.8.75%-10.30% p.a.
Bank of India8.40% p.a onwards8.40% p.a onwards8.40% p.a onwards
TATA Capital8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
The interest rates, maximum tenures, and other charges are subject to change, and it’s advisable to check with our experts for the most current information.

Check Out: How to Easily Check Your PMAY Status with Aadhaar


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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

Who is eligible for Canara Bank PMAY-U 2.0?

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.

What is the income criterion for different categories under PMAY-U 2.0?

– 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

What is the maximum subsidy available under the scheme?

Eligible beneficiaries can avail an interest subsidy of up to ₹1.80 lakh for loan tenures exceeding five years.

What types of housing activities are covered under PMAY-U 2.0?

The scheme covers:
– Purchase of a ready-built house/flat.
– Construction of a house/flat.
– Purchase of a site and construction of a house.

What is the maximum loan amount and repayment tenure?

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.

Are there any processing charges for loans under PMAY-U 2.0?

Processing charges are waived for loans sanctioned under the PMAY-U 2.0 scheme.

How can one apply for Canara Bank PMAY-U 2.0?

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.

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