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Canara Bank Car Loan


Loan Name Interest Rate Processing Fee Loan Amount Tenure
Canara Vehicle Loan 9.00% - 9.65%, Floating 1,000 to ₹5,000 90% of on-road price of vehicle 84 months
Details
Documents Required

  • Duly filled in application form along with 2 recent passport size photographs of applicant/guarantor.
  • Latest salary certificate for 3 months
  • Form 16 or Income Tax Returns or ITAO for previous 3 years
  • Aadhar Card or Driving License or LPG Bill, Utility Bills (electricity, water bill), telephone bill
  • Passport, Election Voters ID Card, PAN Card
  • Statement of bank account for the last 6 months
Benefits

  • Lower interest rates
  • Equated Monthly Installments are easy on the pockets of buyers
  • No Hidden Charges
  • Minimal Processing Charges or Fees
Eligibility

  • Any individual who is a professional or self-employed or is working in a reputed firm or company is eligible to secure a car loan.
  • A Hindu Undivided Family is not eligible to secure a car loan with Canara Bank.
  • The income of the salaried individuals should be minimum Rs 3 lakhs per annum and minimum net take home after proposed instalment should not be less than 25% or Rs 12,000 (whichever is high).
  • For others, the minimum gross annual income should be Rs 3 lakhs per annum as per the latest ITR/ITAO subject to 3 years of gross annual average annual income of not less than Rs 2,50,000.
Other Details

  • Processing fee on a car loan is 0.25% of loan amount (minimum of Rs 1000 and a maximum of Rs 5000)
  • The Canara Bank also avails loans to the used cars which are not older than 5 years. The funds provided to used cars are restricted to 75% of the value of the car or 75% of the agreed price of the car as assured by the automobile engineer or Rs 15,00,000 (whichever is lower).

FAQs 

Q: What are the interest rates Canara bank offers for car loan borrowers?

A: Canara bank offers Car loan with an attractive interest rate ranging between 8.70% to 9.35%.

Canara Bank car loan interest rate is of the floating type and subject to changes depending upon individual customer profile. In the case of women borrowers, the interest rate will be reduced by 0.05%.

Q: What are the features of Canara bank Car loan?

A: Canara bank has a list of following unique features for car loan borrowers and they are as follows:

  • Canara Bank provides a huge amount on the total value of the car, which makes it easy for an individual to own a car.
  • The bank finances up to 90% of the car value in case if the loan amounts up to Rs 10 lakh, 85% of the car value for loan amounts between Rs 10 lakh and Rs 25 lakh. The mentioned percentages include the total invoice value, life tax, registration charges, accessories and insurance of the car that the borrower have chosen.
  • Canara Bank imposes a processing fee of 0.25% of the loan amount with a minimum being Rs 1000/- and a maximum of Rs 5000/- for all types of new cars.
  • The bank offers a car loan amount of up to 75% of the value of the second-hand car.
  • In the case of non-salaried individuals, the loan borrower should have a minimum gross income of Rs.3 lakh per year.

Q: Is there any foreclosure charges in Canara Bank car loan?

A: No, Canara bank does not charge any foreclosure charges. The loan can be prepaid before the loan tenure ends.

Q: What is the processing fee for Canara bank car loan?

A: Canara bank will charge a nominal processing fee of 0.25% on the loan amount. The minimum processing fee is Rs 1000/- and the maximum processing fee is Rs 5000/- respectively.

Q: Can I add my spouse's income to increase the income eligibility criteria for a car loan?

A. Yes, a loan applicant can add their respective spouse's income to increase the income eligibility criteria for a car loan. In this case, the spouse will be treated as co-applicant. Any other income declared by the loan applicant, including rental income, income from investment can also be added to increase the annual total income.


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