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    Canara Bank Used Car Loan Reviews

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    Canara Bank Used Car Loan is Rated as "Blown Away!" by 28 Users

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    Canara Bank Used Car Loans

    Being one of India’s oldest financial institutions, Canara Bank is a customer centric bank providing an extensive array of banking products and services, leveraging the latest technology to deliver on its commitments. Being the most trusted institution in the banking arena, Canara Bank’s name is synonymous with constant innovation, economic growth and also for spearheading the development of under-privileged areas in the country. Sustaining a large clientele comprising of both retail and corporate customers, Canara Bank has evolved into a major financial conglomerate with several subsidiaries, training institutes, sponsored institutes and joint ventures across the globe. Placing the customer’s interests in the forefront, Canara Bank provides a multitude of banking products at very affordable rates. Canara Bank’s product basket comprises of retail loans, corporate banking solutions, NRI banking, agricultural banking and financing for MSMEs. Amongst retail loans, the Canara Mobile - Vehicle scheme is a very popular used car loan product offered by Canara Bank for customers looking to get their used cars financed.

    Features of a Canara Bank Used Car Loan

    Canara Bank finances all types of used cars, not older than 5 years at low interest rates. The Canara Mobile - Vehicle Scheme aims at providing complete financial assistance to a borrower with the bank covering a significant amount of the total value of the used car.

    Quantum of Loan

    Canara Bank provides used car loans up to Rs 15 lakhs after maintaining a minimum margin requirement of 25%. The bank sanctions a particular loan amount for a customer depending on any of the mentioned three factors - 75% of the value of the used car as appraised by an automobile engineer or 75% of the price agreed between the seller and the buyer or 75% of the original cost price of the used vehicle, whichever is lower.

    Loan Margin

    A customer is required to cover a loan margin of 25% of the total cost of the used vehicle while availing a Canara Bank used car loan.

    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.

    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.

    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.

    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 -
      • ITAO/ IT Returns
      • Financial statements etc.
      • Proforma Invoice
      • Required guarantee
      • Co-obligation
      • RTO forms.

    Canara Bank Used Car Loan Interest Rates

    Canara Mobile is a special product offered by Canara Bank to finance used cars. Interest rates for this loan depend on the loan date, with new customers paying interest according to MCLR and old customers having an option to stick to existing rates or move to MCLR.

    Canara Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

    Canara Bank has migrated to the MCLR based system from April 1, 2016, in accordance with RBI guidelines. MCLR based interest rates depend on the CRR (Cash Reserve Ratio), repo rate, tenure, etc. The current rates are mentioned below.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.00%
    1 month 9.25%
    3 months 9.35%
    6 months 9.40%
    1 year 9.45%

    Used car loan interest rates – May 2016

    Canara Bank has differential rates for used car loan borrowers, with women paying a lower interest compared to men. The table highlights the applicable rates.

    Canara Vehicle loan MCLR Interest for men MCLR Interest for women
    Used car loan 1 year MCLR + 0.50% 1 year MCLR + 0.45%

    Canara Bank Base and Prime Lending Rates (For existing borrowers)

    Base Rate 9.65% per annum, effective 7/10/2015
    Prime Lending Rate 14.45% per annum, effective 1/1/2014

    Canara Bank interest rate for used cars (Based on Base Rate)

    Existing customers who wish to continue with the old interest system are expected to pay interest according to the base rate, with the table highlighting current rates.

      Interest for men Interest for women
    Interest rate on basis of base rate BR + 0.30% BR + 0.25%

    Note: Rates mentioned above are applicable as of June 6, 2016. Eligible applicants should check the rates prevailing at time of availing a loan. Interest rates are subject to change without prior notice, at the sole discretion of Canara Bank.

    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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