Canara Bank Car Loan
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Canara Bank Car Loan

Team CARS24
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Latest News
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Canara Bank Car Loan

Team CARS24
editor

Canara Bank is one of the few public sector banks in business in India. The bank has its headquarters in Bengaluru, while it has a total of 355 branches spread across the country. As is the case with all other banks, Canara Bank offers retail loans such as Car Loan, Personal Loan, Home Loan, and Commercial Vehicle Loan. One can have a car loan of as low as Rs 1 lakh from Canara Bank, which is something that gets quite useful when falling short of some funds when buying a new car. Also, other than finance options for new cars, the bank also provides finance options for used cars. Below are the features highlights of Canara Bank car loan –

Canara Bank Features
Interest RateLow Interest Rates Starting at 7.35%
Hidden ChargesNone No hidden charges are levied.
Loan Tenure  for New Cars Upto 7 years
Loan Tenure for Used CarsUpto 5 years
Foreclosure ChargesNone

Canara Bank Car Loan Eligibility Criteria

Canara Bank has a clearly defined criteria for giving car loan to an individual or a party. What we mean here is that an applicant is judged eligible to get a Canara Bank car loan only when he meets a pre-set criteria, which means anyone who applies for a loan at this bank needs to meet a set of conditions to be eligible to benefit from the finance scheme. The eligibility criteria of the Canara bank car loan applicant depends upon the following criteria:-

Salaried – Must be at least 21 years old
– 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.
Others– Must be at least 21 years old
– 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.

Please note – Hindu Undivided Families (HUFs) are not eligible to avail a car loan with Canara Bank.

Canara Bank Car Loan Benefits and Features

If you wish to buy a car in order to take care of your and your family’s transportation needs and even support your lifestyle but do not mean to spend all your savings, you can simply drive home a new car that you desire by taking a car loan from Canara Bank. Being one of the better-known banks in the country, Canara Bank offers car loans at low rates of interest.

Canara Bank New Car Loan Features and Benefits

Provided in the list below are some of the features highlights of Canara Bank new car loan –

  • Low interest rates starting at just 7.35%
  • No hidden charges
  • Minimal processing charges
  • The payment date of monthly instalments can be decided by the customer
  • The loan tenure can be as large as 7 years
  • Canara Bank provides loan schemes to both new and used car buyers
  • The loan can be availed for all types of cars on sale in the country
  • In the case of used cars, the tenure of the loan can be up to 5 years
  • No foreclosure charges are levied by the bank if one wants to close the loan before maturity date

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.

Canara Bank Used Car Loan

Other than offering new car loan, Canara Bank even provides used car loan for those who wish to purchase a second-hand car. However, it is required to mention here that getting a car loan for buying a used car is not as easy as getting one for a new car. That said, one can still make use of the finance option provided by Canara Bank when purchased a used car, that is if he meets the eligibility criteria.


Canara Bank Used Car Loan Interest Rate
9.65% per annum
Min Loan AmountRs 100,000
Max Loan Amount
(Loan to Value)
Loan up to 90% of Ex-showroom Price
Loan Tenure1 year to 5 years
Canara Bank Used Car Loan Lowest EMI / LacRs 1,526
Minimum Net Monthly IncomeRs 15,000
Minimum ITR for Self EmployedRs 300,000
Age CriteriaSalaried: 21 years to 60 years
Self Employed: 21 years to 65 years
Types of CarsFor All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
Canara Bank Used Car Loan Processing FeeUp to 1% of the loan amount
Foreclosure Charges6% of principal outstanding within 6 months to 24 months from 1st EMI, 5% thereafter
Basic DocumentationID Proof, Address Proof, Salary Slip, Bank Statement and Car Quotation

Canara Bank Loan Against Car

If you have paid all your car loan EMIs timely for a minimum period of 9 months, you can simply opt for a top-up on the Canara Bank car loan. Through this, the loan holder benefits from an additional loan to amount, at a competitive rate of interest. Canara Bank Car Loan against Car scheme offers the below features:

  • Finance option of up to 90% of the original loan value of the car available
  • Car valuation is not mandatory.
  • A wide range of approved models and manufacturers are considered by Canara Bank
  • One can benefit from quick and hassle-free disbursal of the additional loan amount.

Canara Bank Car Loan EMI Calculator

Canara Bank Car Loan EMI is the fixed amount that the borrower needs to pay to the bank every month as partial repayment of your car loan. Using a car loan EMI calculator, the borrower can get to know the EMI he’ll have to pay for a certain amount. This can help him plan his finance better and, if required, even adjust the sum he plans to borrow. The free tool calculates the EMI based on the following factors –

 Factors Determining EMI
Rate of interest This has a direct relation with your EMI. Higher the rate of interest, higher will be the EMI.
Loan tenureHigher the loan tenure, lower will be the EMI. The vice versa also holds true.
Loan AmountOf course, another factor that has a direct relation with your EMI is the loan amount. More the amount you borrow, higher will be the EMI.

FAQs

Q: What are the different vehicles that can be financed under the Canara Bank car loan?

A: All four-wheelers, like cars, vans and SUVs can be bought through finance under Canara Car Loan. This purchased vehicle can be either new or used.

Q: Is there any other income that is considered when determining the income eligibility?

A: Bank can also consider the income of the spouse, income from any investments, or rental income for figuring out the income eligibility of the loan applicant.

Q: How is the calculation of interest done?

A: On the Canara Bank car loan, the calculation of interest is done on a daily reducing balance basis.

Q: Is it possible for an individual to prepay his/her loan?

A: Yes, it is possible for an individual to prepay the loan. No prepayment fees will also be levied.

Q: What is the procedure to approach the bank in case the individual wants to avail a car loan?

A: Individuals can get details on the car loan by one of the below-mentioned ways:
Visiting the Canara Bank website.
Calling the Canara Bank call centre (1800 425 0018).
Giving a missed call to 09268592685. Individuals will receive an SMS about the details of the car loan.
Individuals can also visit any Canara Bank branch to get details on the car loan.