Canara Bank Used Car Loan

Features of a Canara Bank Used Car Loan

Canara Bank finances all types of used cars, not older than 3 years, at low interest rates. Some of the features of the used car loan offered by Canara Bank are mentioned below:

1. Quantum of Loan

Canara Bank provides used car loans up to Rs 50 lakhs after maintaining a minimum margin requirement of 40%. The bank sanctions a particular loan amount for a customer depending on any of the mentioned three factors - 60% of the value of the used car as appraised by an automobile engineer or 60% of the price agreed between the seller and the buyer or 60% of the original cost price of the used vehicle, whichever is lower.

1. Loan Margin

A customer is required to cover a loan margin of 40% of the total cost of the used vehicle while availing a Canara Bank used car loan.

1. Loan Repayment

Borrowers can easily repay their Canara Bank used car loans with monthly installments taken up to a period of 60 months. The maximum repayment period for a used car loan can also be determined based on the expected life of the vehicle as per the valuation report got from an automobile engineer.

1. Processing Charges

Canara bank charges a low processing fee of about 0.25% of the loan amount with the minimum amount being Rs 1000/- and the maximum amount being Rs 5000/- for used car loans.

1.  Security for the loan

Canara Bank requires a customer to provide security for their used car loans as hypothecation of the car financed and a personal guarantor as accepted by the bank.

1. Pre-Payment Charges

Canara Bank used car loans can be easily closed at any point in the loan tenure and the bank will not levy any pre-closure charges for the same.

Eligibility Criteria for a Canara Bank Used Car Loan

Canara Bank sanctions used car loans to salaried individuals with a regular source of income and the necessary financial capability to repay the loan.

Self-employed businessmen, firms and corporates can also apply for a Canara Bank used car loan, showing the required business profits and cash flow to efficiently repay the loan.

Customers looking to obtain a Canara Bank used car loan under Hindu Undivided Family (HUF) are not eligible to apply with the bank.

Income Criteria

Salaried professionals are required to have a minimum gross salary of Rs 3 lakhs per annum for the last three years. Their net take home should be 40%, with a minimum of Rs 12,000/ per month, after considering the EMI amount to be paid.

Self-employed businessmen should show an annual average income of Rs 3 lakhs for the last three years according to the Income Tax returns filed.

Borrowers choosing to declare other sources of incomes like rental income, income from investments or their spouse's income, can also do so and the bank will approve the eligibility based on the documentary evidences provided.

Documents required

1. Filled in application form
2. Passport size photographs - 2
3. Latest salary certificate
4. Form 16
5. Income proofs -
   1. ITAO/ IT Returns
   2. Financial statements etc.
   3. Proforma Invoice
   4. Required guarantee
   5. Co-obligation
   6. RTO forms.

Canara Bank Used Car Loan Interest Rates

Car Loan

Including Agriculturists

Up to Rs.15 lakh

Above Rs.15 lakh

Canara Green Vehicle

Including Agriculturist

Up to Rs.15 lakh

Above Rs.15 lakh

EMI calculator for Canara Bank Used Car Loans

Plan and phase out your investments, depending on your financial situation and also understand how much you would be spending on any type of loan you would be availing. Borrowers generally are not clear about how much expense they would incur on a used car loan.

Coming to their aid, are used car loan EMI calculators available on the homepage of BankBazaar.com. To get a detailed forecast on the loan repayment schedule of a borrower, certain details like loan amount, tenure, processing fees and interest rates need to be provided into the EMI calculator tool.

Customers intending to take a Canara Bank used car loan can get a comprehensive loan repayment statement showing their EMI amounts and also the interests they will pay for the entire tenure of the car loan. Used car loan EMI calculators can efficiently plan out your loan repayment schedule for you and are available under the "Finance Tools" menu on BankBazaar.com.

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