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Canara Bank Car Loan Fees and Charges


FeatureCharges
Processing Fee0.25% of the loan amount that is being availed will be charged as a processing fee. However, the processing fee can be a minimum of Rs.1,000 and a maximum of Rs.5,000.
FinancingDepending on the price of the car, 80%, 85%, and 90% of the on-road price of the car can be availed as a loan.
Foreclosure chargesNo foreclosure charges are levied in case the loan is closed before maturity.

Eligibility criteria

The eligibility criteria to avail the Canara Vehicle Loan are mentioned below:

  • Individuals who are self-employed or professionals, or work for a reputed organisation will be eligible to avail a car loan.
  • Hindu Undivided Families (HUFs) are not eligible to avail a car loan with Canara Bank.
  • Reputed firms and companies are also eligible to avail a car loan with Canara Bank.
  • In the case of salaried employees, the minimum gross salary that they make in a year should not be less than Rs.3 lakh. However, the minimum take-home salary after the reduction of the car loan instalment should not be less than Rs.12,000 or 25% of the individual’s take-home salary.
  • Other individuals must also make a minimum gross yearly income of at least Rs.3 lakh as per the latest Income Tax Returns. However, the average annual income of the individual must not be less than Rs.2.5 lakh over the last 3 years.

Canara Bank EMI Calculator

Factors Affecting Canara Bank Car Loan Eligibility

Some of the ways that individuals can increase their eligibility for a Canara Vehicle Loan are mentioned below:

  • Maintain a good credit score: Individuals who have a good credit score have more chances of getting their car loan approved. Having a credit score of 750 and above will provide the lender with an impression that the individual will be able to pay the loan amount on time.
  • Availing a lower loan amount: Banks and other lenders usually approve the loan in case the loan amount is low. Apart from banks being comfortable in providing the loan, the car loan interest rate, that will be levied is also low.
  • Shorter duration: Individuals who choose a shorter repayment tenure can avail the loan at lower interest rates. Therefore, it is recommended that individuals opt for shorter tenure when opting for a car loan. The chances of getting the loan approved also increases since individuals will have to pay to close the loan quicker.
  • Low debt-to-income ratio: Before approving the car loan, banks check the individual’s debt-to-income ratio. In case the individual has a significant balance between their income and expenses, the chances of getting the loan approved at lower interest rates increases.

Comparison of Car Loan interest rates of top banks with the lowest EMI for 7 years

Name of the BankRate of interest (p.a.)Amount (p.a.)
Canara Bank8.80% - 9.45%Rs.1,599
Central Bank of India7.05%Rs.1,512
State Bank of India9.15% - 12.40%Rs.1,617
Axis Bank9.25% onwardsRs.1,622
YES Bank9.75% onwardsRs.1,647
Punjab National Bank8.90% - 9.35%Rs.1,604
ICICI Bank9.30% - 12.85%Rs.1,624
HDFC Bank10.35% to 11.10%Rs.1,642

Documents Required

The documents that must be submitted to avail a car loan with Canara Bank are mentioned below:

  • The completely filled application form must be submitted.
  • 2 passport-size photographs of the applicant.
  • Last 3-months' salary slips or payslips must be submitted.
  • Address proof such as telephone bill, water bill, electricity bill, LPG bill, Driving License, or Aadhaar card must be submitted.
  • Last 6 months bank statement.
  • Income Tax Returns for the last 3 years or Form 16 must be submitted.
  • ID proof such as Permanent Account Number (PAN) Card, Aadhaar Card, Voter ID, or Passport must be submitted.

Contributions

Depending on the cost of the car, the contributions made by the bank and the individual will vary. Given in the table below are the contributions that will be made by the bank and the individual depending on the price of the car:

Price of the carIndividual’s contribution (%)Loan provided by Canara Bank (%)
Up to Rs.10 lakh1090
Above Rs.10 lakh and below Rs.25 lakh1585
Above Rs.25 lakh2080

Canara Bank provided 80%, 85%, or 90% of the on-road price of the car depending on the value of the car. In the case of new vehicles, the loan that is provided on the on-road of the car is inclusive of insurance premium, registration charges, life tax, invoice value, and any other accessories.

Used Car Loan

Canara Bank provides car loans for used cars under the below-mentioned conditions:

  • The car must not be older than 5 years.
  • The tenure of the loan can be a maximum of 60 months.
  • Up to 75% of the car’s value or the agreed price can be financed. The car value must be accessed by an automobile engineer and can be a maximum of Rs.15 lakh, whichever is lower.

Rate of interest

The rate of interest that is charged to avail a car loan with Canara Bank is mentioned in the table below:

DescriptionInterest RateCurrent rate of interest
In case the vehicle is registered under the name of a womanOne Year MCLR + 0.30% to 0.85% depending on the score that is linked to CIC8.80% to 9.35%
Other borrowersOne Year MCLR + 0.35% to 0.95% depending on the score that is linked to CIC8.85% to 9.45%

Repayment schedule

Canara Bank provides a convenient repayment schedule for individuals who have availed a car loan. In the case of new cars, the loan tenure can be up to 84 months, but for used cars, the tenure of the loan can be up to 60 months.

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