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Canara Bank Car Loans
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Canara Bank is one of the predominantly public-sector banks in the country owned by the Government of India. With more than 100 years of existence in the banking sector, the bank has been known for its customer-centric outlook. With a domestic network of 6200+ branches, Canara bank offers all kinds of financial services, such as personal banking, corporate banking, NRI accounts, and digital banking services.

Canara Bank offers an exhaustive list of products including credit cards, gold loans, home loans, auto loans, two-wheeler loans, personal loans, and education loans. The bank has a separate portal dedicated to car loans, which provides easy access to EMI calculator, instant quote availability, various car offers, etc. If you can't afford to keep paying, you could even transfer the loan to someone else!

mymoneykarma provides you with all the information that you need about Canara Bank car loans.

Highlights of Canara Bank Car Loan

  • The car loan in Canara Bank is available for all types of car, irrespective of the model and the make.

  • The customer can take a loan for the second car provided there are no pending overdues on the previous car loan.

  • Cars that are not even one month old will be financed under the new car loan option.

Canara Bank Car Loan Interest Rate

Canara Bank offers economical rates of interest on its car loans. If a woman is purchasing a car through Canara Bank and the vehicle is registered in her name, then she is eligible for a special interest rate ranging from 8.90% to 9.45%. Other borrowers are offered interest rates ranging between 8.95% to 9.55%. These interest rates are applicable for one-year MCLR.

Particulars

Description

Rate of  Interest

8.70% for Central Government and Defense employees; 8.70%-9.25% for the women applicants; and 8.75%-9.35% for general borrowers.

Loan Amount

For New Cars:

 
  • Minimum Loan Amount: upto 10,00,000

 
  • Maximum Loan Amount: 25,00,000 & above

 
  • For Pre-owned Car: 75% of the on-road value of the car as assessed by an automobile engineer, or 15,00,000/-, whichever is lower.

Processing Charges

0.25% of the loan amount, with a minimum of 1000/- and a maximum of 5000/-

Repayment Period

  • New Cars: Upto seven years

  • Pre-owned Cars (not older than five years): Five years

Prepayment Charges

       NIL

Types of Canara Bank Car Loans

  • Used Cars: The bank finances pre-owned cars (not older than five years) at the low interest rates. It lends 75% of the value of the vehicle as assessed by an automobile engineer, or a maximum amount of Rs.15 lakh, whichever is lower.

  • New Cars: If the customer is buying a new car, the bank expects him/her to pay the following margin amounts of the on-road price:
    10%: If the loan amount is INR 10 lakhs 
    15%:  INR 10 lakhs-INR 25 lakhs 
    20%:  INR 25 lakhs and above

Eligibility Criteria for Salaried and Self-Employed Individuals

Salaried

  • All individual borrowers/professionals/reputed firms/companies are eligible for Canara Bank car loan. 

  • Salaried applicants should have a minimum gross salary of Rs.3.00 lakhs p.a. 

Self-Employed

  • Self-employed individuals/professionals should have a minimum gross annual income of Rs. 3.00 lakhs p.a. as per latest ITR/ITAO subject to 3 years. Minimum take-home salary should be 12% after paying monthly EMI.

Documents Required

The following are the documents that you need to submit:

  • Residence Proof

  • Photo ID and age proof

  • Signed application form with self-attested photo

  • Bank statement of the last six months

  • Salaried applicants should submit salary slips of the previous three months, along with Form 16.

  • Self-employed applicants should submit Income Tax Returns of the previous three years, along with audited balance sheet + P&L Account

How to Apply for Canara Bank Car Loans

There are several ways to avail a car loan from Canara Bank. These are:

  • Visit the nearest Canara Bank branch to find out all about the car loans, whether for new or pre-owned cars, and apply directly there. Canara Bank will disburse the car loan amount directly to the car dealer after verifying the documents of the applicant. 

  • People who wish to apply for a car loan online can either visit the website of the Canara Bank or can apply for it through third-party financial websites.

Canara Bank Car Loan EMI Calculator

The customer can determine monthly EMIs using the car loan EMI calculator on the Canara Bank website. Another way to quickly assess the monthly outflow is through the EMI calculators present on various third-party financial websites.

Once the loan amount, tenure, and interest rate values are entered into the calculator, it will show the estimated monthly loan repayment amount. The customer can enter different combinations of loan amount and tenure to arrive at a figure that is comfortable to his/her financial situation.

Loan Amount

 

Loan Tenure

(In yrs)

Interest Rate(in % p.a.)

     EMI

Total Interest to Pay

Total Amount (EMI+Int) 

5 lakh

1

8.75%-8.95%

43,668-43,714

24,014-24,570

5,24,014-5,24,570

5 lakh

2

8.75%-8.95%

22,785-22,831

46,841-47,942

5,46,841-5,47,942

5 lakh

3

8.75%-8.95%

15,842-15,888

70,303-71,976

5,70,303-5,71,976

5 lakh

4

8.75%-8.95%

12,383-12,431

94,396-96,671

5,94,396-5,96,671

5 lakh

5

8.75%-8.95%

10,319-10,367

1,19,117-1,22,023

6,19,117-6,22,023

5 lakh

6

8.75%-8.95%

8,951-9,000

1,44,462-1,48,026

6,44,462-6,48,026

5 lakh

7

8.75%-8.95%

7,981-8,032

1,70,425-1,74,676

6,70,425-6,74,676

FAQs

1. What is the eligibility needed to avail a car loan in Canara Bank?

If you are an individual/professional/ above the age of 21 years working in a reputed firm/company, then you are eligible to avail a car loan from Canara Bank. The applicant should also have a decent credit score,  a good debt-to-income ratio, and no history of defaulted EMI payments in the past. 

2. Is there any other source of income that will be considered other than a monthly salary?

Yes. If you can furnish proof of income from other sources like rental income/investment returns or your spouse’s income, it can be considered, subject to documentary evidence.

3. What credit score is needed for an Canara car loan?

Generally, Canara Bank requires a minimum credit score of 700. If your credit score is less than 700, your loan application will most likely get rejected.