How does Canara Bank Loan Interest Rate impact your EMI amount for Home Loan?

How does Canara Bank Loan Interest Rate impact your EMI amount for Home Loan?

On opting for any kind of home loan facility, the most important factor which individuals do not consider is the interest rate that a lender provides. This factor becomes huge while taking the home loan facility. First, let me tell you what is a home loan? Well, it is a lending facility provided by leading lenders such as banks and housing finance companies to help people in buying their dream home at a manageable rate of interest. This facility is helping those individuals who want to buy their homes. Canara Bank is one of the prominent public sector banks of India that provide a range of banking services to the customers of which home loan is the most preferable one.

Why Interest Rate is the most important factor while taking a Home Loan?

Now, coming to our previous question of why the Canara bank loan interest rate holds such importance while opting for a home loan from the Canara Bank. Well, the first thing you need to understand that home loans are generally taken for a long period and when you repay it via equated monthly installment (EMI) which is made up of a part of your principal amount and part of your interest amount. So, if there is even a point one percent difference in the interest rate, it will show itself in EMI.

So if you got a higher C ​ anara Bank loan interest rate​ on your home loan, let’s say for a period of 15 years.

Then, you will be paying that interest amount for that whole period. So it’s important to check your rate of interest before finalizing any kind of loan facility, but you need to be extra careful in the case of home loan because of the long duration attached to it.

What is Interest Rate on the Canara Bank Home Loan Facility?

Canara Bank provides home loan for various purposes such as home purchase, construction, extension, or repair. The bank gives the interest rate to any borrower purely based on the risk grade they’re in given by the various credit information companies (CIC). Canara Bank has mainly four types of risk grades from CS: 1 to CS: 4. Canara Bank loan interest rate ranges from 8.10% to 10.05% per annum for all borrowers except the women borrowers.

Canara Bank loan interest rate for women borrowers ranges from 8.05% to 10% per annum which is 0.05% per annum less than from the general rate of interest. It is purely in order to encourage women borrowers to opt for a ​home loan​.

What are the factors on which Canara Bank Loan Interest Rated depends?

When Canara Bank or any lender gives money to the borrower, there are certain factors that determine the rate of interest for that individual. As we told above, your credit score holds the most important role in your interest rate. The higher your credit score would be, the lesser your Canara Bank loan interest rate could be.

Other than that, there are a few factors such as an applicant’s age, nature of employment (whether salaried or self-employed), employment history, and property location/type. After assessing these factors, the Canara bank or any other lender will decide your final ​home loan interest rate​.