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One of the many luxuries of life is owning a car. In today’s world, it is not only considered as a status symbol but has also become a necessity. Canara Bank offers easy car loans for purchase of new as well as used/pre-owned cars. The bank has attractive loans at affordable interest rates and easy processing for used car loans.

The vehicle loans provided by the bank are known as the Canara Vehicle loan scheme. Customers can apply for the used car loans of the bank by online banking or by physically visiting the nearest branch of the bank.

The details of the Canara Vehicle loan scheme for used car loans are highlighted hereunder.

Eligibility for Canara Vehicle

Canara Bank Used Car Loan

The bank has similar eligibility conditions or criteria for loans towards new cars as well as for used cars (not older than 5 years).

This loan scheme of the bank is applicable to all the resident individuals as well as non-individuals like companies and firms. However, HUFs are expressly excluded from the list of eligible applicants.

The details of the eligibility along with minimum income requirements under each category are explained below.

CategoryMinimum Income Requirement

Salaried Individuals

  • Minimum gross salary Rs. 3,00,000
  • Minimum Net take Home (NTH) post proposed EMI to be higher of,
  • 25% of the net monthly salary, or
  • Rs. 12,000

Non-Salaried Individuals

  • Gross annual income as per latest ITR to be at least Rs. 3,00,000
  • Minimum gross average annual income of past 3 years to be Rs. 2,50,000
  • Minimum Net take Home (NTH) post proposed EMI to be higher of,
  • 25% of the net monthly salary, or
  • Rs. 12,000

Documents required for Canara Vehicle

The bank requires a very minimum list of documents for the verification process and authenticating the identity of the borrower and the loan repayment capacity. The documents required are the usual KYC documents as per the guidelines of the bank in this regard.

Following is the list of documents required for applying for a used car loan.

  • Identity proof of the applicant
  • Address proof of the applicant
  • Salary slip/ ITR return of the preceding year as well as previous years as required by the bank in this regard.
  • Recent passport size photographs
  • Bank statement of the applicant for the past 6 months at least
  • RC copy and Insurance copy of the vehicle
  • Valuation of the vehicle as assessed by an automobile engineer

Salient features of Canara Vehicle (Used Cars)

Canara Bank is one of the oldest and largest banks in the country and consequent to its merger with Syndicate Bank has become one of the top five banks in the country. This enables the bank to reach a huge customer base through its wide network of branches. The bank offers competent loans in the used car category with a lower interest rate and a high repayment period along with faster processing time making it an attractive option in this category.

The various features of the used car loans of the bank are mentioned here.


The bank offers a higher repayment period or tenure for a used car loan as compared to many other banks in this category. Canara Bank currently offers tenure of 60 months or 5 years for repayment of used car loan availed from the bank.

Amount of loan sanctioned

The maximum finance that can be provided by the bank in this category is calculated based on certain restrictions and valuation of the vehicle to be purchased out of the loan. The maximum loan that can be sanctioned to an applicant is calculated to be lower of,

  • 75% of the agreed price
  • 75% of the value of the car as per the valuation of an automobile engineer
  • Rs. 15,00,000

Rate of Interest 

Canara Bank rate of interest for used car loans is one of the lowest in this category. The bank offers a concessional rate of interest of 0.05% for women borrowers than the usual rate of interest offered to the other applicants. The current rate of interest of Canara Vehicle Loan Scheme for used car loans ranges from 7.70% to 10.30% depending on the credit score of the applicant.

Processing Charges

The bank charges a nominal processing charge on the used car loans under Canara Vehicle Loan Scheme. This charge is about 0.25% of the loan amount subject to the following restrictions,

  • Minimum Rs. 1,000
  • Maximum Rs. 5,000


The bank considers the vehicle purchased out of the loan to be the primary security. Additional security or collateral is usually not required. The bank may, however, ask for additional security or collateral on a case to case basis.

Canara Bank EMI Calculator

The bank facilitates easy calculation of the proposed EMI. This will enable the customers to plan their expenses in a better manner to avoid any burden or any unplanned expenses. The EMI calculator is available on the bank’s website under the Personal Banking Loan Products Canara Vehicle Miscellaneous ‘Click Here to see EMI calculator’.

The customers will need to provide the following details to get the proposed EMI on the used car loan.

  • Estimated Loan Amount
  • Tenure (Number of Months)
  • Rate of Interest

Canara Bank Customer Care

The customer care of the bank is available 24x7 throughout the year except on the three National Holidays (15th August, 26th January and 2nd October). Customers can contact the bank through the various available channels like the toll-free number or email id or by post. The details for contacting the bank or its customer care service are given below.

  • Toll free number – 1800 425 0018
  • Email ID - hocss[at]canarabank[dot]com
  • Postal address (Head Office) - Customer Service Section

 Divisional Manager

 Canara Bank,

 SP&D Wing,

 Head Office,

 No.112, JC Road,

 Bangalore -560002

Telephone – 080-22221581/ 582/ 0490/ 0491/ 1788/ 1789/1790/1984/1985/1986

The bank hosts a digital banking facility CanDigital which helps the customers to carry out their banking transactions like applying for the loan via online banking. This facility is available only for existing customers.

The bank also has an online chat facility as well as a virtual assistant known as Canara Saathi available to all the customers of the bank whether existing or not. Customers can get answers to their queries regarding the bank’s products or locating the nearest branch of the bank and various other details whether general or specific relating to the loan products using this virtual assistant. The bank provides this facility in multiple languages to provide better assistance to the customers as well as increase its reach.

FAQs: Canara Bank Used Car Loan

1. What is the tenure for Canara Vehicle used car loans?

The bank offers tenure of 5 years or 60 months for used car loans of the bank.

2. Is the customer care service of the bank available throughout the year?

The customer care service of the bank is available 24x7 throughout the year except the three National Holidays.

3. What is the maximum loan available under used car loans of the bank?

The maximum loans to be sanctioned under the bank's used car loans is calculated to be the lower of,

  • 75% of the agreed value
  • 75% of the value as per an automobile engineer
  • Rs. 15,00,000

4. Can a person estimate the EMI on used car loans?

The bank enables the customer to calculate the estimated EMI on the used car loan by calculating the same on the bank's EMI calculator portal. The customer will need to provide the details like,

  • loan amount
  • Rate of interest
  • Tenure in months

5. Can a person engaged in agriculture and allied activities apply for the bank's used car loans?

Yes. The persons engaged in agriculture and allied activities are eligible persons for Canara Vehicle used car loans.

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