Canara Bank Vehicle Loan – Eligibility, Charges, and How to Apply

Canara Bank Vehicle Loan

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Canara Bank is an Indian public sector bank under the control and ownership of Ministry of Finance, Government of India. Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906. Canara Bank is one of the largest Indian government owned banks.

Canara Bank Vehicle Loan

Canara Bank is an Indian public sector bank under the control and ownership of Ministry of Finance, Government of India. Canara Bank offers car loans which is known as Canara Vehicle Loan. Canara bank offers vehicle loan at an attractive interest rates and easy EMI option. In this post we will have a closure look on Canara Bank Vehicle Loan, and how to apply for the loan.

Also Read: Car Loan Interest Rates in Comparison to Banks

What is a Car Loan or a Vehicle Loan

A car loan or a vehicle loan is a loan that is obtained to purchase two and four-wheelers for personal use. The lender loans the money to the borrower while the buyer must repay the loan in equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.

Features and Benefits of Canara Bank Vehicle Loan

• Low rate of interest
• Ni hidden charges are levied
• Flexible monthly instalments
• Minimal processing fees
• Flexible tenure
• One can avail a loan amount for car for both new and used cars
• The loan can be availed for all types of cars and does not depend on the car model and manufacturer
• No foreclosure charges are levied
• The loan tenure for used cars is a maximum of 60 months
• Finance is provided by the bank for most of the car’s value.

Interest Rate and Charges

Factors Affecting Canara Bank Car Loan Interest Rates

Canara Bank car loan interest rates for purchasing new and used car depends on the fixed rate of interest. Below are the some of the methods to be eligible for car loan interest rate.

• Credit score: If you have a good credit score you are likely to get a lower interest rate.

• Applicant’s salary: If your salary is on the higher side you will get a lower rate of interest. High income applicants are always a safe bet according to banks. Since their salary are high their chances of paying back loan on time are high.

• Loan tenure: If the applicant will choose longer tenure, your interest rate will be lower and vice versa.

• Vehicles age and condition: Vehicles’ age also play a relative role in interest rate. If you choose to purchase a used car, the condition and overall value of the car will play a significant role in determining your eligible rate of interest.

• Good record with the bank: If you will have a good credit score or good record history with the bank, you will mostly definitely get a good deal of interest.

Eligibility Criteria

There are certain eligibility criteria to avail a car loan from Canara Bank. The eligibility criteria are as mentioned below:

• One’s age should be 21 years and not more than 60 years
• Self-employed individuals or professionals who work for reputed organisations
• Reputed companies and organisations
• Salaries-employees with minimum gross salary per year is Rs 3 lakh
• Hindu Undivided Families

How to Apply for Canara Bank Car Loan

To apply for a car loan from Canara Bank you can either apply vis online or offline. You can apply through internet at the comfort of your home or you can visit the nearest bank branch and can submit the dully filled application form at the branch. You will have to give the relevant details and submit the form along with all the necessary documents attached with the form for the processing of your loan application. After verification your loan amount will be disbursed to your account.

Documents Required

• Dully filled application form
• 2 passport sized photographs
• Bank statement of last 6 months
• Salary slips of last 3 months
• Address proof
• ID proof (PAN Card, Aadhar Card, Voter ID etc.)
• Income Tax Returns for the last 3 years or Form no 16 must be submitted

Canara Bank Car Loan EMI Calculator

EMI is the amount that is paid on a monthly basis against the loan availed from the lender. Before availing a car loan you must know how much loan amount you are eligible for and how much amount you will have to pay monthly for your loan. You can use Canara Bank’s EM Calculator to figure out the EMI. Not only EMIs, you can also get to know the total interest outgo and the overall payment with the help of the calculator. To use the EMI calculator is very simple and saves your time, it consists of basic personal details such as income, loan value, loan tenure and generates the approximate EMI payable for the car loan availed.

FAQs

1. What is a car loan?

Ans: A car loan or a vehicle loan is a loan that is obtained to purchase two and four-wheelers for personal use. The lender loans the money to the borrower while the buyer must repay the loan in equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.

2. Is Canara Bank car loan interest fixed or floating?

Ans: Canara Bank car loan for purchasing new as well as pre-owned car are based on fixed rate of interest.

3. What is the car loan rate of interest in Canara Bank?

Ans: Canara Bank car loan interest rate ranges from 7.35% onwards.

4. What is the maximum tenure for car loan in Canara Bank?

Ans: Maximum repayment period is 84 months for new cars and 60 months for pre-owned cars.

5. What is the minimum CIBL score for car loan in Canara Bank?

Ans: One should have a minimum CIBL score of 750 or above.

Dev Kirtonia

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