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Canara Bank is a state-owned bank which was established back in 1906. The bank boasts of a substantial domestic network with more than 5000 branches across India. It has its headquarters in Bangalore, Karnataka and is known for its customer-centric policies. Through its hundred-year presence in the banking sector, Canara Bank has grown exponentially across the length and breadth of the nation. The bank has expanded its presence globally with offices in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and New York
Canara Bank offers a wide range of banking products and services that cater to various segments of society. One such is the Canara bank car loan. Here, we will discuss Canara Bank’s car loan and highlight the interest rates on offer.
Vehicle Loan Type
Four Wheeler Loans
Ranges from 7.30% to 7.45%
Ranges from 7.35% to 7.50%
Two Wheeler Loans
Ranges from 10% to 10.15%
Ranges from 10.05% to 10.25%
About Canara Bank Car Loan Interest Rates
0.25% of the total loan value is charged as processing fee. However, the processing fee will be a minimum of Rs. 1,000 and the cap is of Rs. 5,000.
Depending on the value of the car, 80%, 85%, and 90% of the on-road rate of the car are offered as car loan.
There are no foreclosure charges in case the loan is closed before maturity.
Let’s Understand Car Loans Better
A car loan helps you to buy a car by making the payment for the total price in monthly instalments rather than paying the entire price at once. Under a car loan, the bank or the lending institution pays the total amount of your car and you can then pay the bank/lender in equal monthly instalments or EMIs which include an interest fee.
Loans are generally offered against some security, however, under a car loan, the car is used as a security or collateral. Thus, in case you fail to make timely EMI payments to the bank, your car will be repossessed by the bank for recovering the debt. Before sourcing a car loan, you should estimate the cost of the loan by including factors like the interest, credit scores, personal income, down payment and all the terms & conditions.
Here are some of the points you can follow while choosing a car loan:
Buying a car requires a substantial amount of planning and execution, right from arranging the finances to choosing the right model. Once you decide to get yourself a car, the immediate aspect that comes to mind is the lending institution which can be approached for seeking a loan. This is because paying the entire value of the vehicle in a single payment could disturb your finances. Thus, the aim should be to get a higher loan amount at a lower interest, with minimal processing fees & related charges. Canara Bank provides all of this and at attractive interest rates to make the process of buying a car easy for you.
The key features and benefits of Canara bank’s car loan are as stated below:
Mentioned below are the eligibility criteria for availing Canara bank car loan:
There are generally two options available while applying for a car loan. Applicants can either make the application online and physically submit a filled in application form by visiting the nearest Canara bank branch. It is often convenient to go for the online mode since it can even be done from one’s mobile or computer at home. Applicants must ensure to fill in all the relevant details and submit the completed form along with supporting documents for further processing of the loan application.
Here is the list of documents that have to be submitted for availing a car loan from Canara Bank:
Depending on the vehicle cost, the loan contributions from the bank and the individual could vary. Mentioned below are the loan contributions that are generally made by the bank and the individual as per the car’s price:
Individual’s contribution (%)
Loan contribution by Canara Bank (%)
Maximum Rs. 10 lakhs
Above Rs. 10 lakhs and below Rs. 25 lakhs
Above Rs. 25 lakhs
Canara Bank provides 80%, 85%, or 90% of the car’s on-road price depending on the car’s value. If it’s a new vehicle, the loan offered includes insurance premium, registration charges, life tax, invoice value, and other such accessories.
Canara Bank offers user car loans as per the below-mentioned conditions:
Maximum 75% of the car’s value or the agreed price is financed by the bank. The actual car value has to be accessed by a certified automobile engineer and has to be a maximum of Rs. 15 lakhs.
Canara Bank offers a convenient loan repayment schedule to individuals who have applied for a car loan. In case of loan for new cars, the loan tenure offered is a maximum of 84 months, and for used cars, the loan tenure is a maximum of 60 months.
1. What type of vehicles can be financed using a Canara Bank car loan?
Different types of four-wheelers like cars, vans and jeeps can be financed using Canara Vehicle Loan. The vehicle can be either new or pre-owned.
2. Is other income considered while determining the income eligibility of an applicant for Canara bank car loan?
The income of spouse, income from investments, or rental income is considered while determining the income eligibility of applicants. However, the bank relies on documentary evidence for such income to be considered.
3. How does Canara bank conduct interest calculation on a car loan?
Interest calculation on a car loan is done on a daily reducing balance basis.
4. As a car loan applicant with Canara bank, can I prepay my loan?
Yes, it is possible to prepay your car loan sourced from Canara bank. The bank does not levy any prepayment fees for such payment.
5. How do I approach Canara bank to avail a car loan?
If you looking to source a car loan from Canara bank, here are the options you can use:
6. Do I need to provide any security while taking a car loan from Canara Bank?
In a car loan, the car itself becomes the security which is taken by the bank against the car loan. The vehicle is hypothecated to the bank till the time loan repayment is completed.
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