Canara Bank Car Loan

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Canara Bank Car Loan

Canara Bank Car Loan Key Features – Jan 2021

Canara Bank Car Loan Rate of Interest

7% per annum

Min Loan Amount ₹ 1,00,000
Max Loan Amount
(Loan to Value)
Loan up to 90% of On Road Price
Loan Tenure 1 year to 7 years
Lowest EMI / Lac ₹ 1,524
Minimum Net Monthly Income ₹ 25,000
Minimum ITR for Self Employed ₹ 300,000
Age Criteria Salaried: 21 years to 60 years
Self Employed: 21 years to 65 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
Processing Fee 0.40% of the principal amount
Canara Bank car loan Foreclosure Charges No foreclosure charges
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement, and Car Quotation

About Canara Bank Car Loans

Canara Bank is founded in 1906 and owned by the Government in 1906. This bank provides a variety of services and products. This bank has also a global presence.

Canara Bank Car Loan rates are availed at reasonable interest rates to the consumer for buying their dream car either new or second hand. It is an accessible loan which can be acquired by anyone who has a good Canara bank car loan CIBIL score.

Advantages of Canara Bank Car Loan

Canara Bank Car Loan

Canara Bank Car Loan Eligibility

Salaried Individual
  • Age – 21-60 years of age
  • Net Monthly Income – should be minimum ₹ 25000
  • Employment Duration – Minimum 1 year
  • Income Eligibility – Depends on Form 16 and Salary Slip
Self-Employed Individuals
  • Age – 21-65 years of age
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • Income Eligibility – Depends on the latest Income Tax Returns
Self-Employed Non-Individuals (Company/Partnership)
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • The applicant has to present IT returns and audited financials of 2 years with Calculated Income.
Priority Customers
  • Applicant should have a vintage of at least 6 months
  • Average Quarterly Balance – Minimum Rs.1 lakh for last 2 quarters
  • Maximum Loan Amount – 3 X Average Quarterly Balance of Last 2 quarters

Canara Bank Car Loan Interest Rate, Fees and Charges

Charges New Car Loan Used Car Loan
Interest Rate

7% per annum

Starts@9.65%
Processing fee 0.40% of the principal amount Up to 0.25% (Max Rs. 5,000)
Issuance of Duplicate Repayment Schedule Charges Rs.500 per instance Rs.500 per instance
Foreclosure Charges No foreclosure charges No foreclosure charges
Penal Interest 2% per month 2% per month
Part Payment charges 3% of the paid amount 3% of the paid amount
Cheque/Instrument Swap Charge NIL NIL
Documentation Charge Rs.1000 per instance Rs.1000 per instance
Issuance of Duplicate No Dues Certificate Charges NIL NIL
Registration Certification Collection Charge NIL NIL
Cheque Bounce/Instrument Return Charges Rs.750 per instance Rs.750 per instance
Issuance of Duplicate Statement Charges Rs. 10 per page Rs.10 per page
Loan Cancellation/Re-booking Charges NIL NIL
Issuance of Credit Report NIL NIL

How to Increase Your Eligibility for Canara Bank Car Loan

  • Opt for a shorter tenure – When you choose a shorter repayment tenure, the EMI that you will be paying each month will be higher. This is an indication of your higher repayment capacity which will lead to banks feeling confident to lend to you. So, if you wish to boost your eligibility for a car loan, opt for a shorter repayment tenure.
  • Keep your credit score in check – If you wish to increase your eligibility for a Canara Bank car loan, make sure that you maintain a credit score of over 750. You can use the Free Credit Score tool to check and maintain a healthy credit score. Checking your credit score regularly can let you take corrective measures to improve it if your score is low or give you the confidence to approach the bank is it is high.
  • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and spends. Before banks lend to you, they will check how much percentage of your earnings goes into paying your debts and a low debt-to-income ratio will be an indication of your high repayment capacity. To enhance your Eligibility For  car loan, you should ensure that you maintain a low debt-to-income ratio.
  • Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for the Dena Bank car loan. A lower loan amount means that the loan will be repaid sooner and hence, the chances of you being eligible for a loan is higher.

Tips to decide the right amount of EMI

Canara Bank provides loans to self-employed people and company owners to help them fund their growth or working capital needs. Taking a loan from Canara Bank has a number of advantages:

Home Loans from Canara Bank The EMI (or equated monthly instalment) is a fixed monthly contribution made by creditors to Canara Bank in exchange for a loan. It is used to repay the loan and pay interest to the bank. It is due on a certain date per month before your debt is fully paid off.

Canara Bank provides Home Loans with terms up to 30 years and the lowest EMI available is Rs. 659 per lakh. Canara Bank’s lowest rate of interest on a home loan is 6.90 per cent.

Canara Bank Car Loan Customer Care – Toll-Free Number

Canara Bank, like all of the top banks in the market, makes it simple for consumers to contact customer support. The bank has a toll-free customer service number that can be called at any time.

1800 425 0018 is an exclusive toll-free code.

Except for three big national public holidays, the service is open 24 hours a day, seven days a week. Both persons with accounts at the central banking branches are eligible for the program.

Processing fees* (Non – refundable)

Payment Fee – A non-refundable processing fee of 0.50 per cent of the loan amount plus applicable tax is charged by Canara Bank. Other charges: After your Canara Bank personal loan application has been approved or authorised, the bank will send you a statement detailing the other charges that will be applied to your loan account.

 

New Car Loan: Pre-owned car Loan & Loan against Car

Canara Bank, one of India’s oldest financial institutions, is a customer-centric bank that offers a wide range of banking products and services by using cutting-edge technologies to keep its promises. Canara Bank’s brand is synonymous with relentless creativity, economic growth, and spearheading the development of underserved areas in the region, as it is the most trusted entity in the banking industry. Canara Bank has developed into a global financial conglomerate with many branches, training institutes, funded institutes, and joint partnerships around the world, serving both retail and corporate clients.

Canara Bank Car Loan Interest Rates and Charges

 

Features New Car Loan Scheme
Interest Rate

7% per annum

.
Processing Charges 0.25% on the total loan amount subject to a minimum of Rs.1,000 and a maximum of Rs.5,000
Loan Amount Up to 90% of the total value which includes life tax, invoice value, registration charges, etc.
Repayment Period
  • 84 months
  • 60 months for pre-owned cars
Prepayment Charges Nil

Canara Bank Pre-Owned Car Loans Other Charges

Interest Rates

7% per annum

to 9.90%
Repayment Period 7 Years
Lowest EMI per lakh Rs. 1,524
Maximum loan amount Upto 90% of on-road price
PROCESSING CHARGES NA

Factors Affecting Canara Bank Car Loan Eligibility

The eligibility criteria for car loan for Canara Bank will depend on the below-given factors:

  • Income – If your income is on the higher side, there are good chances of your eligibility for a Canara Bank car loan being higher. This is because a higher income indicates higher repayment capacity. To be eligible for a Dena Bank car loan, your yearly income should be at least Rs.3 lakh.
  • Loan amount – Your eligibility for a car loan from Canara will be higher if you apply for a lower loan amount simply because if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to lend to you.
  • Repayment tenure – Choosing a longer repayment tenure can lower your eligibility for a car loan as it might give an impression to the bank that your ability to pay the loan is lower. This is because longer repayment tenure results in lower EMIs and the lender may tend to think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
  • Credit score – This is an important factor that most banks, including Canara Bank, consider when determining your eligibility for a car loan. A credit score of 750 and above is considered a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and hence, your eligibility will be higher.
  • Relationship with the bank – As stated earlier, Canara Bank offers Instant car loan to their existing customers through the ZipDrive feature. This feature allows Canara Bank customers to can avail of loans instantly, at their convenience, with negligible documentation. This indicates that your relationship with the bank is an important factor while determining your eligibility.

Canara Bank Car Loan Documents Required

Salaried Individual

Category Documents Required
Identity Proof

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof

(Any 1)

Birth Certificate
Passport
Driving Licence
PAN
Signature Proof

(Any 1)

Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Work Experience Certificate
ITR of Form 16
Salary Slip with Joining Date
Appointment Letter
Letter of Relieving

Self-Employed Individuals

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof (Any 1) Birth Certificate
Passport
Driving Licence
PAN
Signature Proof (Any 1) Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Business Proof Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents Authority Letter/PAN cards

2. Private Limited/Limited Companies

Category Documents Required
Identity Proof Copy of Latest MOA
Copy of Incorporation
Copy of Latest AOA
Address Proof (Any 1)
Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents
List of Directors and Shareholding Partners
PAN Card
Board Resolution
Certificate of Commencement of Business for Ltd. Co.

Canara Bank Car Loan Pre Calculated EMI

How to Apply for Canara Bank Car Loan online?             

  1. Visit Dialabank and fill a form.          canara bank car loan
  2. Wait for a call from our Relationship Manager who will guide you throughout the procedure.
  3. You can compare different offers of various banks and choose according to your suitability.
  4. You can easily apply for a Car Loan through Dialabank and enjoy offers.

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is crucial that before approaching a bank for a loan, one needs to anticipate the amount of loan one needs to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to anticipate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your Yes Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. Canara Bank provides an LTV up to 100 % of the ex-showroom price and anticipates the borrower to fund the remaining value of a property by own money. For example, at its lowest LTV, Dena Bank would expect its applicant to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
  • Multiplier-based loan amount eligibility – Canara Bank calculates your loan amount eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating loan eligibility provided by the banks. Generally, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size, and growth in turnover.
  • FOIR based loan amount eligibility – Canara Bank will also expect your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The ratio of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Canara Bank’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your loan for the vehicle, a small penalty is charged. Prepayment in Dena Bank is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your loan for the vehicle reduces. Dena Bank provides you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This alternative allows you to shut your loan prior and save the interest outgo associated with the remaining term. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option provides you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would require to reduce their monthly EMI obligations.

How to Calculate EMI on Dena Bank Car Loan

Before an applicant avail of a car loan from Canara Bank, you may require to understand how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly installments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses finely.

One can easily calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E denotes the EMI, P the principal amount, in the interest rate, and n the number of years or tenure of the loan.

One can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

Canara Bank Car Loan EMI Calculator

With this Canara Bank car loan interest rate calculator, the applicant has the option to check out the EMI’s before getting a Car Loan. You can easily check through the link below:

Car Loan EMI Calculator

Canara Bank Car Loan Types

Canara Bank car loan offers different types of car loans to its customers. You have the option of choosing the offer which suits your need the best. It offers the following types of Car Loans:

  1. New Car Loan –  If you are thinking to buy a new car, it is the scheme for you. You can get a Car Loan from Canara Bank for a minimum of Rs. 1 lakh and a minimum tenure of 7 years.
  2. Used Car Loan – If you want to buy a used car then you must choose this scheme which offers a minimum loan of Rs. 1 lakh and a minimum tenure of 5 years.
  3. Loan Against Car – You can choose this scheme if you require urgent funds where you can keep your cars as an assurance with the bank.

Compare Yes Bank Car Loan with other Banks in India

Car loan Banks Interest Rates EMI per Rs 1 lakh for 7 Years
Bank Of Baroda Car Loan 8.80% – 10.55% Rs. 1,599 – Rs. 1,689
Canara Bank Car Loan 8.70% – 9.35% Rs. 1,594 – Rs. 1,627
Corporation Bank Car Loan 8.75% – 9.50% Rs. 1,596 – Rs. 1,634
HDFC Bank Car Loan 8.50% – 11.25% Rs. 1,584 – Rs. 1,725
ICICI Bank Car Loan 8.82% – 12.75% Rs. 1,600 – Rs. 1,806
Union Bank Car Loan 8.85% – 11.85% Rs. 1,601 – Rs. 1,757
SBI Car Loan 8.65% – 9.70% Rs. 1,609 – Rs. 1,645

Canara Bank Car Loan for Top Selling Cars

Other Available Products from Canara Bank

Canara Bank Personal Loan Canara Bank Car loan Canara Bank Home Loan
Canara Bank Credit Card Canara Bank Two Wheeler Loan Canara Bank Education Loan

About Canara Bank

Canara Bank was established in July 1906 in Mangalore, then a small port town in Karnataka, by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist. Over the course of its hundred-year history, the Bank has passed through different stages of its growth trajectory. Canara Bank grew at a breakneck pace, especially after nationalization in 1969, achieving the status of a national player in terms of the regional scope and clientele segments. For the Bank, the 1980s were marked by market diversification. The Bank celebrated a century of service in the Indian banking sector in June 2006.

News 

 

Maruti Suzuki is India’s first automaker to produce 2 crore vehicles.

Maruti Suzuki, India’s largest automaker, has been the first to build 2 crore cars in the country. The launch of the 20 millionth Maruti vehicle, a Vitara Brezza, at Maruti’s Gurugram plant was celebrated by all business members, including Kenichi Ayukawa, MD and CEO of Maruti Suzuki India Limited. In reality, while Maruti manufactured the first 50 lakh cars over the course of more than 21 years, the last 50 lakh cars were produced in just 38 months. Maruti has accomplished this remarkable feat in the 34 years and 6 months since it began manufacturing in December 1983. In the previous three years.

The lowest interest rates on car loans are offered by Punjab & Sind Bank and the Central Bank of India.

Interest rates on car loans for both public and private banks listed on the Bombay Stock Exchange (BSE) were taken into account when compiling the results. Banks who do not have data accessible on their websites were not included. As of January 14, 2021, data was gathered from the websites of the respective banks. Banks are classified in ascending order by interest rate, so the bank with the lowest interest rates on a car loan of Rs 10 lakh is at the top, and the bank with the highest interest rates is at the bottom. The table shows the lowest interest rates offered by banks on a loan of Rs 10 lakh.The EMI for a Rs 10-lakh loan with a seven-year term is determined using the interest rate shown in the figure (processing and other charges assumed to be zero for EMI calculation). The interest rate in the table is an estimate that may change based on the terms and conditions of the banks. Taken into consideration is the minimum interest rate based on the APR for the quarter ending September 30, 2020.

 

FAQs for Canara Bank Car Loan

✅ What is Canara Bank Car Loan?

Canara Bank Car Loan is a car loan provided to you for purchasing a new as well as a used car.

✅ How can I get Car Loan from Canara Bank?

You can get a car loan from Canara Bank by visiting the nearest branch of Canara Bank. You will get satisfaction to apply from anywhere.

✅ How does Canara Bank Car Loan work?

Canara Bank car loan interest rates are provided at reasonable rates. You can get a car loan approval faster. Canara Bank offers a flexible loan tenure period.

✅ What is the Car Loan Interest Rate in Canara Bank?

The interest rate charged by Canara Bank for a car loan starts at

7% per annum

.

✅ How to Check Car Loan status in Canara Bank?

You must visit the Canara Bank branch to check your car loan status. Also, you can use Canara Bank’s net banking services to check your car loan status.

✅ How to Calculate Car Loan interest in Canara Bank?

For the calculation of your car loan interest in Canara Bank, the following information is required:

  • Loan tenure
  • Rate of interest
  • Loan amount
  • You can calculate car loan interest for Canara Bank through the EMI Calculator.

✅What is the maximum loan amount I can avail myself on Car Loan from Canara Bank?

You can get a maximum loan amount for a car loan from Canara Bank is up to 90% of On Road Price.

✅ What is the loan tenure of Canara Bank Car Loan?

The loan tenure duration for a car loan from Canara Bank ranges from 1 to 7 years.

✅ Can I get 100% Car Loan from Canara Bank?

You can get loan up to 90% of On Road Price for a car loan from Canara Bank. To avail a 100% Car loan, you must visit the online platform of Dialabank.

✅ How much processing fee is applicable on Canara Bank Car Loan?

Canara Bank charged a processing fee is 0.40% of the principal amount for getting a car loan.

✅ What are the EMI options available on Canara Bank Car Loan?

Your car loan EMIs are automatically subtracted from your bank account. Also, you can pay your car loan EMI through the net banking services of Canara Bank.

✅ What are the Canara Bank Car Loan Prepayment charges?

Canara Bank does not have any prepayment charges for availing a car loan.

✅ Can I get a top-up loan on my existing Canara Bank Car Loan?

Yes, you can get a top-up loan on your existing Canara Bank for a car loan. Also, you can get a top-up car loan by visiting the online platform of Dialabank.

✅ Do I need to provide a guarantor to avail a car loan from Canara Bank?

Yes, there is a need for a guarantor for getting a car loan from Canara Bank. It will increase your car loan eligibility.

✅ How to get a Canara Bank Car Loan Statement?

For getting a car loan statement from Canara Bank, you can use Canara Bank’s mobile banking app. Also, you can visit Dialabank online and fill a simple form there and get offers.

✅ How to pay Canara Bank Car Loan interest online?

You can pay your car loan interest through the net -banking services of Canara Bank. For getting a low-interest car loan, you must visit Dialabank online.

✅ What if I can’t pay the interest on Canara Bank Car Loan for 3 months?

If you can’t pay the interest on Canara Bank for Car Loan for 3 months, then it will add up to the outstanding loan amount and repayment charges will reframe.

✅ How can I apply for EMI Moratorium on Canara Bank Car Loan?

You can apply for EMI Moratorium on Canara bank by visiting the nearby branch of Canara bank or you can submit a request through an email. Also, if you want relief for the balance duration, you must apply through Dialabank.

✅ Can I close the Canara Bank car loan online?

You can close your car loan from Canara Bank by using the net-banking page of Canara Bank. You have to log in with your Canara bank car loan details on the net -banking page and pay your car loan.

✅ What is the Canara Bank Car Loan Customer Care Number?
The customer care number of Canara Bank for car loan queries is  9878981144.

✅ How can I get NOC from Canara Bank for a car loan?

You can get a car loan NOC from Canara Bank when you clear your car loan amount.

 What is the Canara Bank Car Loan closure procedure?

  • Just go to the bank with the documents required for a car loan.
  • Write a letter for pre-closure of the Canara Bank Car Loan account.
  • Pay the pre-closure charges as per Canara Bank Car Loan.

✅ What are the Canara Bank Car Loan preclosure charges?

Canara Bank Car Loan preclosure charges are zero.

✅ What is the Canara Bank Car Loan maximum tenure?

The Canara Bank Car Loan maximum tenure is 7 years.

✅ What is the Canara Bank Car Loan minimum tenure?

The Canara Bank Car Loan minimum tenure is 1 year.

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