• Canara Bank Car Loan Interest Rates

    Canara Bank Car Loan interest rate currently ranges from 7.35% - 9.90% p.a

    Canara Bank Car Loan

    Features New Car Loan Scheme

    Interest Rate

    7.35% - 9.90% p.a.

    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


    Other Details

    Income Criteria

    Salaried individuals – Rs.3 lakh per annum

    Margin Amount

    • For loans up to Rs.10 lakh – 10% for all customers
    • For loans more than Rs.10 lakh and up to Rs.25 lakh – 10% for PSUs/ Autonomous bodies/ State / Central/ Government employees and 15% for all other customers
    • For loans more than Rs.25 lakh – 20% for all customers
    • For used vehicles – 60% of the value of the car


    • Hypothecation of the vehicle
    • Individual guarantor acceptable by Canara Bank

    Types of Vehicles

    All four-wheelers (including vans and jeeps)

    Canara Bank Car Loan Interest Rate

    Published On : 2021-06-10

    Factors Affecting Canara Bank Car Loan Interest Rates

    The Canara Bank car loans for purchasing new and pre-owned vehicles are based on a fixed rate of interest. This particular rate of interest will remain the same throughout the tenure of the loan. The interest rates for Canara Bank Car Loan range between 7.35% and 9.90%, depending on multiple factors. The interest rate you are eligible for will be dependent on various factors, which have been mentioned below:

    1. Vehicle’s age – 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. The quantum of loan will also get affected by this factor. Hence, it is always recommended to get the used car (you want to purchase) checked by a skilled mechanic.
    2. Loan tenure – If you choose a relatively longer loan tenure, your interest rate will be lower and vice versa. When you borrow a loan with a long tenure, you are required to pay the EMI over the period of years.
    3. Credit score – Credit score is basically a validation parameter used by banks to measure your past payment record of loans and other debts. For every payment that you make towards a particular loan, points get added to your credit score. If you have a credit score of 750 or more, your car loan application will get approval easily, in a hassle-free manner.
    4. Applicant’s salary – High income applicants are always a safe bet according to banks. Since their salaries are high, the chances of them paying the loan back on time are high. A borrower whose income is on the lower end will attract a higher rate of interest.
    5. Reputation of employer – This is applicable in some cases. If you are working in a highly reputed organisation, you are more likely to get a good deal.
    6. Customer relationship – If you have a good credit history with the bank, you will most definitely get a good deal.


    1. Who are eligible to borrow Canara Bank Car Loan?
    2. The following entities are eligible to borrow car loan from Canara Bank:

      • Individual borrowers
      • Reputed organisations and firms
      • Salaried individuals and professionals
    3. How do I borrow a car loan from Canara Bank?
    4. There are various ways in which you can borrow a car loan from Canara Bank. You can do so on their official website – www.canarabank.com. You can also contact their customer care department on 1800 425 0018. You can also give them a missed call on 09268592685 to receive an SMS with information regarding the car loan. If none of the above-mentioned methods are convenient, you can always visit the nearest Canara Bank branch.

    5. What is the financing rate of used cars?
    6. Canara Bank finances 60% of the price or 60% of the total value of the car after the assessment of the vehicle has been done by an automobile engineer or Rs.15 lakh, whichever amount is lower.

    7. How is the interest on the car loan computed?
    8. The interest rate is computed on a daily reducing balance basis.

    9. Can a member of HUF borrow car loan from Canara Bank?
    10. No. A member of the Hindu Undivided Family (HUF) cannot borrow a loan under this scheme.

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