Canara Bank is an Indian state-owned bank headquartered in Bangalore, Karnataka. It was established in 1906, making it one of the oldest banks in the country. The bank was nationalised in 1969. Canara Bank occupies a premier position among the comity of Indian banks with an unbroken record of profits since its inception. Read on to learn about the eligibility and documentation requirements for the Canara Bank car loan.
At least 21 years old
Less than 60 years old
Salaried or self employed
with regular income
Earning more than the minimum
Minimum income required is
Rs.3 lacs per annum
Loan capped @
90% of the ex-showroom price
EMIs of other loans lower
Pay off your credit card bills
Choose longer tenure loan up to 7 years
|Interest Rate||8.70% to 9.35%|
|Processing Fees||0.25% on the loan amount with a minimum of Rs.1000/- and maximum of Rs.5000/-|
|Loan Tenure||7 years|
Established in 1906, Canara Bank is one of the premier banking institutions in India with a wide array of financial services, well known for its Core banking services. Keeping the needs of its customers in the forefront, Canara Bank has strived for more than a century to achieve excellence in every aspect of banking. Being one of the oldest and most trusted banks in India, Canara Bank has carved a niche for itself promoting growth, development, and constant innovation using modern technology for providing custom-made banking services to its large clientele.Serving the country for over 111 years, the bank currently operates 6179 branches and 9743 ATMs across the length and breadth of India including 8 overseas branches at Leicester, Shanghai, Manama, Johannesburg, New York, Hong Kong, DIFC (Dubai), and London. With a representative office in Sharjah, UAE, Canara Bank currently holds a client base worth Rs.8.18 crore approximately. Additionally, the bank also holds 10 joint ventures, subsidiaries, and sponsored organisations in the country and abroad.
Canara Vehicle is a unique car loan scheme provided to customers wanting to purchase and own their dream cars without any hassles. Adding to the excitement of owning their own car, customers can buy any make and model of a car using a Canara Bank car loan, enjoying great returns on their investments
Offering the Canara Vehicle scheme at competitive interest rates, convenient EMI repayments and easy application procedures, this car loan from Canara Bank is one of the most value added investment in today’s market. Customers looking to invest in a car should definitely consider this car loan scheme as an affordable option with a lot of add-on benefits. They can also avail various discounts and waivers on fees while availing a Canara Bank car loan.
The Canara Mobile - Vehicle Scheme provides car loans for all types of cars, irrespective of the model and the make.
Canara Vehicle’s most unique feature is the amount of loan coverage that Canara Bank offers. Generally, there is no cap applied on the upper limit of the loan amount for purchase of new cars. Canara Bank finances a huge chunk of the total value of the car, which makes it very easy for an individual to own a car.
The applicable interest rate for car loan is determined on the basis of MCLR (Marginal Cost Based Lending Rate).Canara Bank Marginal Cost Based Lending Rate (MCLR) for New Borrowers
|Benchmark 1-year MCLR rate||8.40% Effective from 7 March 2018|
The rate of interests offered on Canara Bank car loans are mentioned below in the table:
|Name of Scheme||Description||Rate of Interest||Current Rate of Interest|
|Canara Vehicle Loan and Canara Vehicle Loan to Agriculturists (Car loan)||Women borrowers||1-Year MCLR + 0.30% to 1-Year MCLR + 0.85%||8.70% to 9.25%|
|Other applicants||1-Year MCLR + 0.35% to 1-Year MCLR + 0.95%||8.75% to 9.35%|
In order to be able to avail a car loan with the interest rates applicable to women borrowers, the vehicle must be registered under the name of the woman applicant.
The effective MCLR from 7 March 2018 for various tenures have been provided below.
Note: The interest rate is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.
Salaried professionals with a regular source of income and the required repayment capacity are eligible to avail a Canara Bank car loan.
Self-employed businessmen, proprietary firms and corporate companies also qualify for a car loan provided they show the required profits and cash flow to repay the loan.
Customers wanting to avail a Canara Bank car loan under the Hindu Undivided Family (HUF) category will not be eligible to do so.
Applicants need to submit the mentioned documents while availing a Canara Bank car loan - filled in application form, two passport size photographs, latest salary certificate, form 16, income proofs like ITAO/ IT Returns, financial statements etc., Proforma Invoice, required guarantee, co-obligation and the necessary RTO forms.
Salaried applicants need to have a minimum gross salary of Rs 3 lakhs per annum for the previous three years. The net take home should be 25%, the minimum being Rs.12,000 per month, after considering the monthly instalment amount to be paid.
Self-employed businessmen should have an annual average income of Rs 3 lakhs for the last three years as per IT returns filed.
As a special case, if customers choose to declare other sources of incomes like rental income, income from investments or income of the spouse, the bank approves the eligibility based on the documentary evidences produced.
EMI calculators are available on the Finance Tools menu under the main menu on the BankBazaar home page, which can help a customer calculate his monthly EMIs he will be paying for a Canara Bank car loan. BankBazaar’s Car Loan EMI calculator is designed to efficiently calculate the Canara Bank EMI payment details in a few seconds. Applicants are advised to follow a simple process to instantly calculate their Canara Bank car loan EMIs.
Customers who have applied through BankBazaar can check their Canara Bank loan status using SMS alerts and emails. Applicants also have the option of checking their Canara Bank loan status online on the Canara Bank website.
The Canara Bank car loan application form is available on the Canara Bank website.
Customers can download their Canara Bank car loan statements from the Canara Bank portal.
Canara Bank imposes zero penalty charges on customers looking to pre-close their car loans.
Hypothecation of the purchased car against the loan amount and having a personal guarantor for an applicant is acceptable to the bank.
Our friendly customer Care helpdesk is available at 91 44 6651800 and will be glad to help customers with any queries regarding Canara Bank car loans.
Individuals, professionals, reputed firms and companies are eligible to apply for a car loan from Canara Bank.
No, Hindu Undivided Families are not eligible to apply for a car loan from Canara Bank.
Canara Bank provides car loans for all new and used four wheelers which includes Jeeps and Vans.
If your car is not more than 1 month old (from the purchase date or registration date), then it will be considered a new car by Canara Bank when you apply for a car loan with them for it. To avail the car loan in this case, the borrower must also be the first transferee.
While deciding the income criteria for car loan, Canara Bank takes the income declared by the applicant into consideration. This can be his or her income earned from rent or investments or it can be the income of his or her spouse. The bank will consider this only if the income proofs for the same are provided.
If you are a salaried employee, you must earn a minimum of Rs.3, 00, 000 per annum to be eligible for a car loan from Canara Bank.
Individuals who are not salaried should have a minimum gross yearly income of Rs.3, 00, 000. They should also have IT returns which show a minimum income of Rs 2, 50, 000 for the last 3 years in order to avail this loan.
In both the cases your Net Take Home (NTH) income must be 25% or more after calculating the proposed car loan interest, which is a minimum of Rs.12000 per month.
Yes, Canara Bank allows joint applications in case of car loan.
The rate of interest for female borrowers (includes joint applications where the first borrower is a female) is one-year MCLR plus 0.30% to 0.85% and the rate of interest for male borrowers is one-year MCLR plus 0.35% to 0.95%.
Canara Bank calculates rate of interest of their car loans on the basis of daily reducing balance.
The maximum tenure for which you can take a car loan from Canara Bank for purchasing a new car is 84 months.
The maximum tenure for which you can take a car loan from Canara Bank for buying a pre – owned car is 60 months or up to the life of the vehicle (as mentioned in the assessment report of the automobile engineer), whichever is lesser.
Yes, if you have a high CIBIL score, your chances of getting a car loan from Canara Bank will be higher. Your good CIBIL Score will convince the bank about you being a reliable and responsible person when it comes to handling your finances.
You can apply for a car loan from Canara Bank online on the website of the bank or you can visit any branch of the bank.
Yes, you can check the status of your Canara Bank car loan application online. To check, you have to visit the website of Canara Bank and click on ‘Online Loan Application and Tracking’ on the homepage. On the next page, you have to select ‘Canara Vehicle’ from the drop down menu and click on ‘Track Status’. After this, you have to provide details like your birth date, mobile number, Unique Reference Number (URN) and click on ‘Submit’.
Yes, Canara Bank allows its customers to apply for a car loan online. To apply, you have to click on ‘Online Loan Application and Tracking’ that can be found on the homepage of the bank’s website. On the next page, you have to select ‘Canara Vehicle’ from the drop down menu and click on ‘Apply’.
You can find the application form for Canara Vehicle Loan Scheme for Cars on the website of the bank. You can choose to apply online or download the form from the website. You can also collect the application form from any branch of the bank.
The processing fee for Canara Vehicle Loan Scheme for Cars is 0.25 percent of the amount of loan. This fee amounts to a minimum of Rs.1000 and a maximum of Rs.5000.
The maximum amount of loan that a person can avail through car loans offered by Canara bank for purchase of new cars is mentioned below –
The maximum amount of loan that a person can avail through car loans offered by Canara bank for purchase of used cars is mentioned below –
Among the above points, the one with the lower value will be considered by the bank.
Yes, Canara Bank considers the on road price of the new car while calculating the loan limit for Canara Vehicle Loan Scheme for Cars.
Yes, you have to provide the following as security to avail a car loan from Canara Bank –
Yes, you can prepay the amount of loan that you borrowed from the bank under the Canara Vehicle Loan Scheme for Cars. The bank does not charge a prepayment fees.
Yes, there is a margin on car loans offered by Canara Bank and it is applied on the on road price of the car. If you are purchasing a new car, the following margin is applicable –
The margin on used car loans offered by Canara Bank is 25 percent of the cost of the project.
The car loan applications are processed very quickly by Canara Bank and the loan amount is also disbursed in very less time.
The car loan customers of Canara Bank can repay the money to bank in Equated Monthly Installments (EMI). They can give standing instructions to the bank or pay the EMI via cheques.
Most banks in India follow the same process for verifying car loans. The applicants of Canara Vehicle Loan Scheme for Cars have to meet the eligibility criteria and provide all the necessary documents asked by the bank. Once they submit all the documents and their application forms to the bank, the bank will initiate the verification and approval process. The process is quick and if everything is in order, then the car loan is approved by the bank very quickly.
Yes, you can apply for a second car loan with the bank but it will be approved by the bank under certain conditions. Also, you can apply for a second loan only if you have cleared all the dues of your other car loan.
If you are not able to pay your EMI on time, then Canara Bank will not charge a late payment fee for the same. The bank will only charge the penal interest.
If you want more information about Canara Vehicle Loan Scheme for Cars, you can visit any branch of the bank or contact their customer care department. To get in touch with their customer care department, you can call up on 1800 425 0018. You can also get more details about Canara Bank car loan by giving a missed call on 09268592685.
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