Canara Bank is a fairly popular public sector bank in India. While it has its headquarters in Bengaluru, the bank enjoys a network of 355 branches across India. Akin to most other banks, it offers a range of finance options, including Car Loan, Personal Loan, Home Loan, and Commercial Vehicle Loan. Canara Bank starts providing car finance options of as little as Rs 1 lakh, which is something that becomes useful when one is falling short of some funds while purchasing his dream car. This public sector bank even offers finance options for buying used cars. The bank even offers a free EMI calculator so that you can calculate your monthly liability beforehand and take a loan accordingly. Below are the highlights of the features of Canara Bank car loan EMI calculator.
Like all EMI calculators, Canara Bank car loan EMI calculator is based on a fixed formula. Basically, the EMI calculator helps you figure out the monthly instalment which you will be paying at a pre-defined rate of interest for a set loan tenure. The formula on which loan EMI calculator works is given as follows –
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
In this case,
‘P’ stands for the Principal amount
‘R’ stands for the monthly rate of interest
‘N’ stands for the number of instalments
It should be kept in mind here that the formula given above doesn’t keep in account the pre-payment that is made for early repayment of the loan.
Currently, Canara Bank provides car loan at a starting interest rate of just 7.35%, The bank also has a low processing fee. Also, when taking a car loan from the Canara bank, you can choose a repayment tenure of the loan of as much as 7 years. Yet another feature is that the bank offers a finance option of up to 90% of the ex-showroom price of the vehicle. Moreover, the bank even offers used car loans. Plus, the new car loans and the used car loans are not just offered to salaried employees, but even to to businessmen, proprietorship firms, partnership firms, companies, trusts, and societies.
To make the repayment of car loan easy, all banks provide EMI (Equated Monthly Installment) facility. Hence, before you opt for a car loan, you need to plan the repayment properly. For this, the Canara Bank Car Loan EMI calculator comes in hand. At the moment, the new car loan interest rates that the Canara Bank offers range from 7.35%. However, at 8.70% rate of interest, the EMI per lakh for the total amount of Rs 10 lakh for 2 years comes out to be Rs 45,547.
|Loan amount (Rs.)||Interest rate*||Processing fee||EMI for 2 years (Rs.)||EMI for 3 years (Rs.)||EMI for 4 years (Rs.)||EMI for 5 years (Rs.)||EMI for 6 years (Rs.)||EMI for 7 years (Rs.)|
The Canara Bank Car Loan EMI Calculator can be used for free for all takes care of all the large and complicated calculations quickly instead of you needing to spend too much time on making calculations manually, and at a higher risk of errors. The salient features of the EMI calculator of Canara Bank include:
In the table provided below, one can have a look at the EMI for multiple loan amounts taken at a hypothetical rate of interest of 7 per cent. As you can see in the table given below, the EMI changes as the tenure of the loan changes from 2 years to 7 years.
|Loan Amount||Interest Rate||EMI for 2 years (Rs.)||EMI for 3 years (Rs.)||EMI for 4 years (Rs.)||EMI for 5 years (Rs.)||EMI for 6 years (Rs.)||EMI for 7 years (Rs.)|
The table we have given below clearly shows that the loan tenure is inversely proportional to the EMI you have to pay. However, the interest is directly proportional to the loan tenure. For instance, in case you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 2,028. However, you end up paying Rs 21,658 in interest on a loan of Rs 1,00,000.
|Vehicle Loan EMI for ₹ 1 Lakh loan amount at 9% interest rate offered by Canara Bank for different tenures||2 Years||3 Years||5 Years|
|Canara Bank EMI for a loan amount Rs 1 Lakh at 8.00%||Rs 4,477||Rs 3,134||Rs 2,028|
|Total amount you pay, including interest||Rs 1,08,546||Rs 1,12,811||Rs 1,21,658|
|Total interest paid||Rs 8,546||Rs 12,811||Rs 21,658|
Basically, an amortization schedule is nothing but a table of regular loan payments that tell you about the principal component and the interest component of every EMI that you pay until the loan is totally paid back. It is necessary to know that EMI is a fixed sum that consists of a fixed principal amount and fixed interest. The table you see here gives an EMI schedule for 3 years for a loan amount of Rs 2 lakh –
|Year||Interest Paid During The Year||Principal Repaid During The Year||Total Amount Paid During The Year (Interest + Principal)||Outstanding Principal|
|2020||Rs 3,025||Rs 15,295||Rs 18,320||Rs 1,84,705|
|2021||Rs 13,047||Rs 96,872||Rs 1,09,919||Rs 87,832|
|2022||Rs 3,767||Rs 87,832||Rs 91,599||Rs 0|
All available car loan EMI calculators work on the same forumla, which is –
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
P is for the principal amount (basically the money you borrow)
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the loan tenure of loan in months
E is the EMI (equated monthly payment)
Multiplier based loan amount eligibility – Yes Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company’s reputation, stability, size and growth in turnover.
FOIR based loan amount eligibility – The Yes Bank even calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.
In case you wish to pay back the car loan before its maturity, you need to pay a small penalty that is known as a prepayment penalty. Canara Bank charges a pre-payment penalty of 6% of principal outstanding within 6 months to 24 months from 1st EMI, and a penalty of 5% thereafter
A: Canara Bank car loan has the following features:
– Finance of up to 90% of the ex-showroom price of the vehicle.
– Competitive interest rates of as low as 7.35%
– Car loan application is processed and disbursed within 7 working days
– Minimum documentation is required
– Special benefits for loyal customers.
A: You can avail a car loan offered under the Canara Mobile (Vehicle) scheme.
A: EMI Is calculated through the below formula –
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1],
Here, P is the principal amount, R is the interest rate, and N is the number of instalments.
A: A car loan amortization table shows the payment schedule of you EMIs along with its breakup, which means you get to know what principal amount and interest you are paying through each EMI.
A: Self-employed individuals, salaried persons, farmers, agriculturalists, businessmen, pensioners, and companies can apply for car loans at Canara Bank.
A: No, it’s not easier to calculate the EMI using the formula or an excel sheet as compared to the EMI Calculator tool as manual calculation is not only more time-consuming but also prone to errors.
A: You should check your loan documents to figure out the prepayment penalty the you will be charged. You can also visit the bank branch to get to know the amount you’ll have to pay as penalty. Once you’re aware of prepayment charges, you can also use Canara Bank car loan EMI Calculator to get to instantly know the penalty you will have to pay.