If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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  • Canara Bank Car Loan Interest Rates is Rated as "Blown Away!" by 39 Users

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    Canara Bank Car Loan Interest Rates

    Overview About Canara Bank Car Loan

    Canara Bank is one of the oldest banks in the country with headquarters in Bangalore, Karnataka. It was established in 1906 in Mangalore and was nationalised by the Government of India in 1969. The bank also has presence in various cities abroad such as London, Dubai, New York and Hong Kong. Canara Bank provides various loans to customers at attractive interest rates.


    Apply for Car Loan Online

    Owning a car is a dream come true for most and the swankier the car, the greater is the person’s status in society. Owning a car is now simple thanks to the Canara Bank Car Loans. Easy and affordable with a flexible tenure, Canara Bank offers car loans for all types of vehicles ranging from Minis to Sports Utility vehicles to Sedans at attractive interest rates. Canara Bank offers tenures of up to 84 months and does not require extensive documentation. So walk into the nearest branch of Canara Bank and walk out with quick loans to purchase your favourite set of wheels.

    Canara Bank Car Loan Interest Rates 2017

    Car Loan Interest Rates vary based on a number of factors. These interest rates are one of the main deciding reasons behind a person’s choice for a particular car loan. Canara Bank offers attractive interest rates that varies between 9.90% to 9.95%. Apart from this, loan tenures are also flexible with the bank offering a time period of upto 84 months.The best part is that Canara Bank does not have a maximum limit per say in terms of the loan amount that is offered. These loans are provided for all individuals, either self employed or salaried customers as long as the minimum amount they earn is Rs.3 lakhs per annum.

    Canara Bank Car Loan Rates Table

    Base Rate 9.65%
    Rate of Interest(fixed)
    • First time female borrower in case of a joint loan - 9.90%
    • Male borrower - 9.95%
    Processing Fee 0.25% on the amount of loan between Rs. 1000 and Rs. 5000
    Loan Amount 80%/85%/90% of the price of the car and this includes life tax, invoice value, insurance premium, registration charges and also accessories
    Loan Tenure Up to 84 months
    Minimum annual income required Rs. 3 lakhs annually

    How to calculate interest rate on the Canara Bank Car Loan?

    The payment option that is chosen to pay car loans in EMI or Equated Monthly Installments which basically is the principal amount along with the interest amount that is based on the rate of interest previously determined by the bank. EMIs are paid over a tenure suitable to the applicant and with the progress in the tenure, there is a reduction in the interest amount and increase in the principal amount.

    A formula for calculating the EMI on car loan is given below-

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

    Where E stands for the Monthly EMI, P is the principal amount, r refers to the interest rate applicable per month and n stands for the number of years.

    For an amount of Rs. 2,00,000 at an interest rate of 9.95% with a loan tenure of 1 years, the tentative total amount that is to be paid is Rs. 2,09,208 with the interest rate being around Rs. 9,208.

    For example, the following will be the amortization table for a car loan of Rs. 6,00,000 for a period of 3 years at an interest rate of 9.95% from Canara Bank.

    Year Total Payment Balance Principal Amount Interest Amount
    2015 Rs. 57561 Rs. 551951 Rs. 48049 Rs. 9513
    2016 Rs. 230246 Rs. 368404 Rs. 183547 Rs. 46698
    2017 Rs. 230246 Rs. 165737 Rs. 202667 Rs. 27579
    2018 Rs. 172684 0 Rs. 165737 Rs. 6947

    The principal amount increases with the tenure as the rate of interest decreases until the loan is paid back completely. As described in the table above, the total EMI that would be paid will amount to approximately Rs. 6,90,737 whereas the total amount of interest that is paid will be around Rs. 90,737.

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    Factors affecting Canara Bank Car Loan Interest Rates

    There are many different determinants when it comes to deciding the car loan interest rates for Canara Bank. Based on this and the tenure chosen by the borrower, the final amount of EMI or Equated Monthly Installment that is to be paid also varies. Some of these important factors are listed below.

    • Duration or tenure of the loan - This is a significant determinant that has an impact on the total amount paid by the borrower. Most choose tenures that are longer as it gives them the option of paying back the loan in smaller installments, however this can be detrimental as the total amount of interest that is paid increases thereby increasing the total amount that is to be repaid. Hence it is advisable to choose a shorter tenure.
    • Income - The borrower’s income is another aspect that is deemed important by banks and financial institutions. Some may also have a minimum income requirement that is to be met by the applicant in order to become eligible for the loan. These income requirements also vary based on other factors such as if the borrower is self employed or salaried.
    • CIBIL Scores - A highly significant factor that is taken into account by banks is The TransUnion score and a person’s eligibility to avail a loan from Canara Bank is based on this score. Generally, a score of above 750 is given preference to and applicants with higher scores find it easier to avail loans at competitive interest rates as well.
    • A prior relationship with the bank is another benefit that can be availed by borrowers as the process of procuring loans become a lot simpler and is more convenient.

    How CIBIL scores affect Canara Bank Car Loan Interest rates

    The interest rates provided by Canara Bank varies based on certain important factors. Leading the list is the CIBIL TransUnion Score. Credit Information Bureau India Limited or CIBIL provides, collates and keeps a record of a person’s credit card history and spends. Apart from this, if applicants have taken a loan before hand then their payment regularity and history is also noted by banks. All financial institutions prefer providing loans to those who are seen as less risky and are known to repay their debts on time. CIBIL considers the above factors and provides a score which is the CIBIL TransUnion Score. This 3-digit number is highly significant and varies between 300 to 900. Banks, lenders and financial institutions place a lot of importance onto these scores and decide whether the applicant is deemed eligible for availing loans. With higher scores, the chances of procuring the loan of your necessity is greater as those with higher scores are considered to be less risky in terms of repaying loans.

    Frequently Asked Questions (FAQ’s) about Canara Bank Car Loan Interest Rates

    • What is the maximum amount that is eligible to be loaned under the Canara Bank Car Loan scheme?

      There is no maximum amount per say, a certain percentage of the total value of the car is provided and this is inclusive of life tax, invoice value, insurance premium, registration charges, and other accessories. The loan break up is as given below -

      ~Loan upto Rs. 10 lakhs - 90%

      ~Loan is between Rs. 10 lakhs and Rs. 25 lakhs - 85%

      ~Loan above Rs. 25 lakhs - 80%

    • What collateral or security should the applicant provide?

      There are various documents needed for the loan application -

      ~Hypothecation of the car is needed against which the loan is procured

      ~Personal Guarantee provided by an individual is required by the bank.

    • What is the minimum annual income that is required for a customer to procure a Canara Bank Car Loan?

      A minimum annual income of Rs. 3,00,000 is necessary.

    • Is prepayment of the loan amount allowed?

      Yes prepayment of the loan amount is allowed and Canara Bank does not charge an additional fee for the same.

    • How can one apply for a car loan with Canara Bank?

      Customers can apply for a car loan in the following ways -

      ~By directly contacting the representatives in the nearest Canara Bank branch.

      ~ By logging onto the Canara Bank website and applying there

      ~ Calling the Canara Bank Call Center

      ~Sending an SMS with regards to vehicle loan as part of the Product Information initiative.

    Car Loan Reviews

    • Canara Bank Car Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I would say the Canara bank car loan service is excellent . The customer support is good with CANARA bank. The charges are very less with CANARA BANK CAR LOAN Service . The rate of interest is 9.9% which is very low when compared with others banks. The customer support is good with Canara bank.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 16, 2017
    • Canara Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I used a CANARA BANK car loan before applying this car loan. I have closed that car loan in CANARA BANK after sometime. Customer support is good. I started this car loan from CANARA BANK for 7.75% as floating rate of interest. I negotiated it and they provided it to 7.75% from 8%.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 30, 2017
    • Canara Bank Car Loan
      "At the moment is good"
      0.5 3.0/5 "Satisfactory"
      CANARA Bank car loan is much better than private bank, as they are very much customer friendly. They are considering customers current repayment track record which is good but it is too early for me to comment about Canara bank. The way the file is going is really good I would like to rate them 3.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Sep 28, 2017
    • Canara Bank Car Loan
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      I have got the car loan with the Canara bank and the response is very good . The rate of interest is also very good like its around 8.75% and the loan amount got disbursed to my account with in a day of time. Processing procedures are really a good one with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 23, 2017
    • Canara Bank Car Loan
      "Cordial Staff"
      0.5 5.0/5 "Blown Away!"
      I maintain a good relationship with the staff at Canara Bank. They are very cordial and customer centric. Whenever I approach them for a query, they are supportive as well. I had taken a car loan and it was a smooth process with a fantastic rate of interest.
      Was this review helpful? 1
      , shimoga
      Reviewed on Jul 11, 2017
    • Canara Bank Car Loan
      "Great service"
      0.5 4.5/5 "Excellent!"
      The documentation and the verification process was smooth with Canara bank for the car loan . Within a week time they have disbursed my car loan. The rate of interest was nominal with Canara. The customer service and the response was good. I am happy with the loan amount. The required loan amount was provided by Canara bank. I would say it was a good service offered by Canara bank.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 01, 2017
    • Canara Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      The Canara bank actually values their customer and one of the Branch Manager took personal interest in concern to my car loan application and , they had approved the loan and after clearing my Cibil they had disbursed my loan with in 3hours of time. The rate of interest is nominal and competitive. Overall, I am satisfied with the CANARA BANK service.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jun 06, 2017
    • Canara Bank Car Loan
      "Quick Service"
      0.5 4.0/5 "Great!"
      In 2015, I had taken a car loan with Canara Bank. The interest rate was of 11%. I went to the bank and discussed with the manager about the loan, immediately they gave me the application form and processed the loan within 30 minutes. Actually that was year end so they processed it as soon as possible.
      Was this review helpful? 0
      , salem
      Reviewed on May 24, 2017
    • Canara Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Canara Bank car loan process is great, my experience was really good with Canara bank and the customer service executives are very friendly in approach and the rate of interest was 9.67% approximately. I got the car loan approved and on the same day the interesting part is after loan got disbursed bank executives came to my place to collect the documents. All in all, it was a very good service provided by them.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 16, 2017
    • Canara Bank Car Loan
      "Good in rate of interest"
      0.5 5.0/5 "Blown Away!"
      Initially I applied for a car loan with different bank. But I was not satisfied with interest rate, as it is little high so I approached Canara bank where I got the rate of interest for 8.95% so I happily continued with Canara bank and I got the loan as well.
      Was this review helpful? 1
      , new delhi
      Reviewed on May 06, 2017
    • Canara Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got an amazing offer on the rates for my car loan. I had taken it from Canara bank. The process was also pretty smooth and easy. The services was good. There was no processing charges . Overall I could say that it was a hassle free process in getting this loan. Another advantage is they don't have any pre closure charges too.
      Was this review helpful? 0
      , hosur
      Reviewed on May 05, 2017
    • Canara Bank Car Loan
      "Very helpful service"
      0.5 5.0/5 "Blown Away!"
      Applied car loan with canara bank, the response and the follow up was good with my car loan application. The rate of interest and the charges levied low with my car loan disbursement. They just took 2 days to disburse my car loan. I can say it was very helpful service.
      Was this review helpful? 0
      , tirunelveli
      Reviewed on Apr 19, 2017
    • Canara Bank Car Loan
      "Champion service for car loan"
      0.5 5.0/5 "Blown Away!"
      I was overwhelmed by the service offered by CANARA bank, when it comes to Car loan as without any hesitation they were able to provide the car loan. It was unbelievable. I met the Branch Manager there he was able to process the loan with ease. Within 15 minutes they were able to complete the loan process, on top of that they were not in need of any documents too.
      Was this review helpful? 3
      , bhubaneshwar
      Reviewed on Dec 15, 2016
    • Canara Bank Car Loan
      "Easy process"
      0.5 5.0/5 "Blown Away!"
      I got an good offer on the rates for my car loan. I have taken it from Canara bank. The process was also pretty smooth and easy. The services was good. The processing charges was also reasonable. Overall I could say that it was a hassle free process in getting this loan.
      Was this review helpful? 2
      , new delhi
      Reviewed on Sep 06, 2016
    • Canara Bank Car Loan
      "Good experience"
      0.5 4.0/5 "Great!"
      I had taken a car loan from Canara Bank. The process was very fast and easy. I got the loan on the same day. The services were good. They cooperated well. The rate of interest was also pretty normal. The processing charges was reasonable too. Good overall.
      Was this review helpful? 1
      , tuticorin
      Reviewed on Jul 23, 2016
    • Canara Bank Car Loan
      "Excellent services "
      0.5 5.0/5 "Blown Away!"
      Canara bank was near to my office that was the reason why I had chosen Canara bank. I had submitted all the necessary documents to them and got a car loan. The data and information given by the bank was crystal clear. Their executives were also friendly. One of the officials named Sowmya processed my application fast and disbursed my loan in 30 minutes.
      Was this review helpful? 0
      , kochi
      Reviewed on May 19, 2016
    • Canara Bank Car Loan
      "Nominal interest"
      0.5 5.0/5 "Blown Away!"
      I have got the car loan with the Canara Bank and the interest rate was around 10.5% is fixed. The loan amount got disbursed within two to three days of time. Documentation process was an easy one like it was same as other banks and the processing charges were also a good one like it was around one thousand Rupees. There are no drawbacks with them and am happy and they need to improve their customer service like they have recruit young employees.
      Was this review helpful? 0
      , mangalore
      Reviewed on May 03, 2016
    • Canara Bank Car Loan
      "Smooth & convenient loan"
      0.5 5.0/5 "Blown Away!"
      I have taken the car loan with Canara Bank as they had offered me a good rate of 9% with a processing fee of just Rs.500 and there are no foreclosure charges as well. The loan processing and documentation overall took 3 days and it was a pretty smooth and convenient loan experience.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 30, 2016
    • Canara Bank Car Loan
      "Efficient"
      0.5 4.0/5 "Great!"
      Canara bank car loan is fine. They were very prompt . I am holding this car loan for 5 years. My current account is with Canara bank therefore I preferred Canara for the car loan. Interest rate is good . Processing fee is very good. I was asked to pay the normal EMI. Payment options are excellent when it comes to Canara bank.
      Was this review helpful? 0
      , aurangabad
      Reviewed on Apr 15, 2016
    • Canara Bank Car Loan
      "Extremely good..."
      0.5 5.0/5 "Blown Away!"
      Extraordinary as the customer service is very good in Canara bank while applying for the car loan. Processing time is very short than other private banks. For me interest rate is 8.5% and this is an employee offer. Processing charge is just nil. For me the prepayment period is about 15 years and this differs from normal payment mode.
      Was this review helpful? 0
      , bidar
      Reviewed on Jan 18, 2016
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