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Car Loan

Canara Bank is an Indian state-owned bank founded in 1906 and underwent nationalisation by the government in 1969. As on September 2015, the Bank has substantial domestic presence with 5727 branches throughout India. Headquartered in Bangalore, Karnataka and widely acclaimed for customer-centric nature, Canara Bank provides a range of products and services to serve various segments of society. During its hundred years of its existence, Canara Bank has grown and expanded throughout the length and breadth of the country. As on December 2015, the Bank had 5787 branches and 9144 ATMs covering 4081 centres. The bank also has global presence with offices abroad in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and New York.

 

Types and Features of Various Canara Bank Car Loans

In order to provide car loans to various segments of Indian society, Canara Bank has introduced multiple types of car loans. The following are the features of these major types of car loans.
 

Canara Mobile - Canara Bank Car Loan
 

Canara Bank car loan can be availed for the purchase of both second hand cars and new cars. This car loan can be availed by salaried persons, self-employed professionals, reputed companies and firms. Apply for an Canara Bank car loan and take benefit of a hassle-free loan application and sanction process. Canara Bank car loan scheme can be availed for the finance of cars of any make and model.


Canara Mobile - Vehicle loan if offered at simple application process, has attractive interest rates, can be repaid back in convenient EMIs and comes with no hidden charges. Owing to these benefits, Canara Bank car loan is one of the most sought for car loan in the market. If you wish to buy a new or a used car, then you must consider the Canara Bank plans as it is an affordable option with a lot of additional benefits.


Canara Bank loan for a new car can be availed to purchase a new car of any make and model and there is no upper limit for the loan amount. Canara Bank used car loan finances the purchase of a second hand car not more than 5 years old. 


Canara Bank auto loan comes with a number of benefits and features such as:
 

  • Canara Bank offers new and used car loan.
  • Canara Bank car loans can be availed for the purchase of all types of cars, irrespective of the model and the make.
  • For loan amount of up to Rs 10 lakhs, the Bank finances up to 90% of the cost of the car
  • For loan amount between Rs 10 lakhs and Rs 25 lakhs, 85% of the car value is sanctioned as loan amount.
  • For loan amounts above Rs 25 lakhs, up to 80% of the car cost is financed.
  • The above mentioned percentages are inclusive of invoice value, life tax, registration charges, insurance premium and other accessories.
  • Tenure for a car loan can go up to 84 months.
  • Processing fee for Canara Bank car loan is 0.25% of the loan amount. The minimum limit is Rs 1000/- and maximum is Rs 5000/- for all types of new cars.
  • Car loans offered by Canara Bank can be paid back at any time before the loan maturity date and the bank does not charge any foreclosure charges.
  • Canara Bank car loans can also be availed a car loan on a second car provided the customer has no overdues on his earlier car loans.
  • Cars not more than one month old can be financed under the new car scheme.

Canara Bank Pre-owned car loan


Canara Bank car loan can also be availed for the finance of used cars. The second hand cars for should not be older than 5 years. Used car loans can be availed at the same low interest rates. The Bank finance 75% of the value of the car, as assessed by an automobile engineer or Rs.15.00 Lakh whichever is lower.

Documents Required for Canara Bank car loan

Before applying for the Canara Bank car loan, you should have a document checklist with you so that you know all the documents which you will need to furnish with the car loan application form. Keeping a record of the documents required for Canara Bank car loan, will make your loan application process simple and quick.


Here is the list of documents you will need to submit along with the Canara Bank car loan application form:
 

  • Car loan application from- duly filled and signed with 2 passport size photos.
  • Income proof - Latest salary certificate and Form No.16 / Income – proof like ITAO/ IT Return, Financial statements as may be required by the Bank.
  • Proforma Invoice or valuation report
  • Guarantee / co-obligation. Waiver considered selectively.
  • RTO Forms

Canara Bank car loan interest rates

Canara Bank offers one of the best car loan interest rates across the car loan market. Canara Bank car loan interest rate varies according to the individual client profile, the loan amount sanctioned, loan tenure as well as additional factors.


Canara Bank car loan interest rate is of the floating type and subject to changes depending upon individual customer profile among other factors. In case of women, the car loans from Canara Bank start at 1yr. MCLR+ 0.45%, while for male applicant, the rate begins at 1yr. MCLR+ 0.50.

Additional Features of Canara Bank Car Loan

Car loans provided by Canara Bank are among the best car loans in India, owing to the attractive car loan interest rates, convenient repayment options, zero foreclosure charge, transparent processing and quick disbursal of car loans. The following are some of the additional features to consider about Canara Bank Car Loan.


Purpose of the loan:
 

  • Both new and used cars are financed under the Canara Bank Car Loan scheme
  • Used cars should not be more than 5 years old

Processing fee for Canara Bank car loan
 

  • Currently, 0.25% of the loan amount with a minimum of Rs.1000/- and maximum of Rs.5000/- is charged as a processing fee for the loan. However, this is subject to periodic revision.

Maximum Loan Amount
 

  • For new vehicles, car loan amount eligibility may be up to 90% / 85% / 80% of the total value. There is no maximum ceiling amount for the loan.
  • For old vehicles, car loan amount eligibility is 75% of the agreed price or 75% of the value of the car, as assessed by an automobile engineer or Rs.15.00 Lac whichever is lower.

Repayment Term
 

  • The tenure for a car loan is up to 84 months in case of new vehicles and 60 months in case of pre-owned vehicles.

Eligibility for Canara Bank car loan
 

  • All individual borrowers, professionals, reputed firms, companies are eligible for availing Canara Bank Car Loan.
  • HUF is not eligible for an Canara Bank car loan.

Eligibility for Canara Bank car loan depends upon the employment type of the individual and varies in case of salaried and self-employed professionals.


Salaried individuals
 

  • Salaried individuals must have a min. gross salary of Rs.3 lakhs p.a.
  • The minimum Net Take Home after proposed installment must be the higher amount between 25% of gross salary or Rs.12,000.  

Other than salaried individuals
 

  • The minimum gross annual income of Rs. 3 lac p.a. as per latest ITR/ITAO subject to 3 years’ Gross Average Annual Income of not less than Rs. 2.50 lac.
  • Minimum NTH after proposed installment must not be less than 25% or Rs.12,000/- (whichever is higher)

Check your Car Loan Eligibility Online

Before you consider availing car loan, you must take into account the eligibility criteria for the loan. You can check your Canara Bank car loan eligibility at no extra cost through PaisaBazaar.com. PaisaBazaar has developed an easy-to-use online eligibility calculator which helps you to determine your eligibility by giving answers to few simple questions related to you and the loan you intend to take.


Calculating eligibility is an important step in taking a car loan, because if you are not eligible for the loan, your loan application might be turned down by the bank. So, it is very important to check whether you are eligible to apply for the loan or not. With the advent of technology and increase in tech-savvy customers, most of the things can be done online. Now, you do not need to visit the bank branch to check your eligibility for the loan. You can check your loan eligibility from anywhere, you just need access to the internet.


The car loan eligibility calculator, requires a few simple inputs such as, your income, place of residence, car model you intend to buy, cost of the car, how much finance you need and similar questions. Once you feed all these inputs into the calculator, your eligibility will be assessed and you can know whether you are eligible for the loan or not.


Using a loan eligibility calculator saves your time as you need not go to the bank and can check your eligibility within minutes. Whether you are applying for a pre-owned car loan or a new car loan, you will need to satisfy the certain eligibility criteria of the bank. Check your Canara Bank car loan eligibility using PaisaBazaar’s car loan eligibility calculator to save your time and money. Fill the inputs required by the eligibility calculator and check your car loan eligibility status at PaisaBazaar.

Equated Monthly Installment or EMI

Car loan EMI or Equated Monthly Installment is the sum of money which the borrower will have to pay every month in order to repay the borrowed amount. Car loan EMI should be taken as such which the borrower can comfortably pay every month. Therefore, it is always better to calculate the EMI you will pay before applying for the car loan. When you calculate your EMI before you apply for a car loan online, you know how much amount you will need to pay every month. Having an assessment always helps, because you know how much from your monthly income will go towards your car loan repayment every month. You know how much money you can set aside every month from your monthly income and you do not exceed that amount. So, every loan applicant must calculate the Car loan EMI before applying for the loan so that his monthly budget is not affected.


Car loan EMI can be calculates using Car loan EMI calculator. It is an online calculator which calculates the monthly car loan payments when you enter the details of your car loan. Car loan EMI calculator is a handy tool which can be used any number of times without a pause to calculate the Car loan EMI. You can also experiment with the Car loan EMI calculator, by entering different values of the car loan parameters, to reach an EMI which you can pay every month comfortably.


Canara Bank car loan EMI can be calculated using the EMI calculator on Canara Bank’s website or using other EMI calculator on financial websites. Calculate EMI for Canara Bank car loans using the Canara Bank car loan EMI calculator on Canara Bank’s website or PaisaBazaar and get instant results. You will just need to input the car loan details, like the loan amount, loan tenure and interest rate for the loan. Once you enter the details, the EMI calculator displays the EMI that you will be paying every month to repay your loan.


Car loan EMI calculator works on the following factors:
 

  1. Car loan amount- The amount you borrow for purchasing a new or old car is the car loan amount. Canara Bank sanctions up to 90% of the cost of car in case of a new car and 75% of the valuation of the car in case of old cars.
  2. Car loan tenure- The time period given by the lender for paying back the borrowed amount is the loan tenure. Canara Bank offers flexible tenures of up to 84 months in case of new. For used car loans, the maximum repayment tenure is up to future life of the vehicle as indicated in its valuation report or 60 months whichever is less.
  3. Car loan interest rate- Interest is levied on the loan amount at a certain rate which is the interest rate of the loan. The interest rate either be fixed or floating. Canara Bank charges floating interest rates on car loans.

PaisaBazaar's Car loan EMI calculator can be used to calculate EMI and also show the best deals on car loans according to your eligibility and requirements. You will just need to click the 'Get Quotes' button below the EMI to get the best car loan deals. The car loan schemes displayed can be compared against the different key features. Post comparison you can make the final choice as per your requirements and apply for a car loan online. You can also apply for Canara Bank car loan online at PaisaBazaar.com.

Things to consider before taking a car loan

Before you apply for a Canara Bank, you need to check all the car loan requirements for Canara Bank car loan. Further, you will also need to consider the following factors linked to your car loan:
 

a) Down payment: Down payment is the initial amount paid when something expensive, usually a car or a house, is bought on credit. It is always better to pay maximum down payment so that the dependency on loan is reduced. There are a number of benefits for making a high down payment, firstly you can be offered a lower rate of interest by the lender because he will have confidence on your repaying capabilities. Secondly, your chances of loan approval will increase. Further, your car loan EMIs will be lower, and you will have to pay less in total interest over the tenure of the loan.
 

b) Interest rates: The rate of interest on a car loan is an important factor to consider. Many banks have fixed rate of interest while others have floating interest rates. In case of fixed interest rates loans, the interest rate stays the same throughout the tenure of the loan and so the loan EMIs also remain fixed. Whereas, in case of floating interest rate loans, the interest rate fluctuates periodically depending on a range of market factors. In floating interest rate loans, the EMIs do not stay fixed, they increase or decrease with the market fluctuations. It is always better to choose floating rate of interest so that you can take the benefit of a lower rate of interest if the interest rate goes down. Further, it is important to consider which interest rate is giving you more benefits, floating or fixed rate of interest.
 

c) CIBIL Score: CIBIL score is maintained by the Credit Information Bureau Limited. This score is calculated on the basis of loan and credit card bill repayments of an individual. This score determines the creditworthiness of a person and is taken into account by money lenders. When a lender lends you money, he checks your credit score. If you have a good credit score that means you have not defaulted on any of your loans and your repayment capability is good. A good credit score builds the confidence of a lender and he may offer you a loan at a better rate of interest than a person with a lower score.
 

d) Additional charges: When you are taking a car loan, you must consider the additional charges associated with it. The additional charges may include, loan processing charge, foreclosure charge, stamp duty, late payment fees, etc. You must check all the additional charges before you finalize your car loan.
 

e) EMI: Before you decide which car loan you want, you must know how much loan you will require for buying the car. The EMI or the monthly payments which you will make will depend on the loan value. Make sure you take a loan which you can pay back easily because if you default on your car loan then your car can be taken away be the lender and your CIBIL score will be badly affected.

Bank Car Loan FAQs

1. I have an outstanding Canara Bank Car Loan. Can I apply for another car loan from Canara Bank?


A. You are eligible for a second car loan but on certain conditions provided the earlier car loans have no over dues.


2. Who all can apply for a Canara Bank Car Loan?


A. All individual applicants, self-employed and salaried professionals as well as reputed firms, companies are eligible for availing Canara Bank Car Loan except HUF.

 

3. How much processing fee I will have to pay while availing the loan?

A. Processing fee has been waived from 17-08-2015 to 31-03-2016.

 

4. How is the interest on the car loan calculated?

A. Interest is calculated on daily reducing balance basis.


5. Which types of vehicles are financed by Canara Bank?


A. All types of four-wheelers including vans, jeeps both new and used are financed by Canara Bank.


6. How much income is required for availing car loan from Canara Bank?


A. The income required for availing the car loan depends upon the employment type of the borrower:


Salaried Class:
 

Salaried Individuals must have a minimum gross salary of Rs.3.00 lacs per year. Net take home (NTH) salary after taking into account the EMIs of proposed loan must be 40% with a minimum of Rs.12000/- p.m.


Other than Salaried Class:

Individuals under this category must have a minimum gross average income of Rs.3.00 lacs per anuum (Average of last 3 years and as per ITR/ITAO). Net take home after taking      into account the EMIs of proposed loan should be 40% with a minimum of Rs12000/- per month.

 

7. Can any other type of income be considered in the income criteria to increase the income eligibility criteria?


A. Any other income declared by the loan applicant, including rental income, income from investment, income of the spouse.

 

8. How much maximum amount can be sanctioned under Canara Vehicle Loan Scheme for Cars?


A. For the purchase of new cars, there is no upper limit for loan amount. Canara Bank finances upto below-mentioned percentage of the total value of the vehicle:
 

  • Loan up to Rs. 10.00 Lacs-                                90%
  • Loan between Rs. 10.00 Lacs & Rs. 25.00 Lacs- 85%
  • Loan above Rs. 25.00 Lacs-                              80%
     
  • However, for purchase of second hand vehicles, the finance shall be least of the following:
     
  • 75% of the value of car as appraised or assessed by an automobile engineer.
  • 75% of the price agreed upon by the seller and buyer.
  • 75% of the original purchase price of the car
  • Rs.15.00 lacs (after maintaining a minimum margin of 25%)

9. What is the repayment term for Canara Bank car loan?


A. The maximum repayment tenure In case of a new car is 84 months. For used car loans, the maximum repayment tenure is up to future life of the vehicle as indicated in its valuation report or 60 months whichever is less.


10. What are the Canara Bank car loan interest rates?


A. The interest rates are floating in type which means that they keep changing with the market fluctuations. Floating interest rate is linked to the Base Rate of the Bank. The present interest rates ate:
 

  • For Women borrowers (In case of joint loan First Borrower being woman) - Base Rate +0.25 %( i.e. Presently 10.25%)
  • For men borrowers- Base Rate + 0.30 %( i.e. Presently 10.30%).

11. How is the interest calculated on Canara Bank car loan?

A. The interest on the car loan is calculated on daily reducing balance basis


12. How much do I need to pay as processing charge for the car loan?


A. A nominal processing charges of 0.25% on the loan amount has to be paid by the loan applicant. The minimum and maximum processing fee has been set at Rs.1000/-  and Rs.5000/-.repectively.


13. How do I apply for a Canara Bank car loan online?


A. You can apply for a Canara Bank car loan online through Paisabazaar.com. All you need to do is log on to the website and input some key details in order to get all the available car loan options. You then have the option to choose Canara Bank car loan from the list of options in order to complete the online application process. If your application is accepted, a bank representative will get in touch with you in order to complete any additional formalities that may be completed.        

14. What security/collateral do I need to provide?


A. Hypothecation of car has to be provided because against this the loan is granted. Personal guarantee of a person is required and it must be acceptable to Bank.


15. Can I foreclose my Canara Bank car loan?


A. Yes. The loan can be prepaid before the loan tenure ends. Canara Bank does not levy any car loan foreclosure charges.

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