Canara Bank Car Loan Interest Rate

Canara Bank is a state-owned bank that was founded in 1906. The bank has a sizable domestic network, with over 5000 branches spread over India. Its headquarters are in Bangalore, Karnataka, and it is noted for its customer-focused policies.

Canara Bank has developed enormously across the country during its century-long existence in the banking sector. The bank's global presence has grown to include offices in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and New York. Canara Bank provides a diverse range of financial products and services to many segments of society. Canara bank vehicle loan is one example.

Characteristics of the Canara Bank Car Loan Service

The following are the key features and benefits of the Canara Vehicle:

  • The processing fees are kept to a minimum.
  • The customer can select monthly installments. The loan can be taken out for a period of up to 84 months.
  • The bank provides financing for the majority of the car's worth. As a result, it is simple for a person to own a car.
  • Individuals can obtain a car loan for both new and old vehicles.
  • The car loan rate of interest Canara Bank levied is lesser.
  • There are no hidden fees.
  • The loan is available for all sorts of vehicles and is not based on the model or manufacturer.
  • In the case of used cars, the loan term might be up to 60 months.
  • The bank does not charge foreclosure fees if borrowers want to pay off their loans before the maturity date.

Canara Bank Car Loan Interest Rate 2022

Here is the current interest rate for a car loan from Canara Bank-

Canara Bank car loan interest rates

9.45% p.a

 

What are the Factors that Affect Canara Car Loan Interest Rate?

Some of the major attributes that affect the Canara Bank car loan interest rates are-

1) CIBIL

Individuals with good credit have a better chance of getting their vehicle loan authorized. A credit score of 750 or higher gives the lender confidence that the individual will be able to repay the loan on time.

2) Tenure

Individuals who choose a shorter repayment period will be able to obtain the loan at a reduced interest rate. As a result - it is recommended that individuals choose a car loan with a shorter term. Individuals will have to pay to complete the loan faster, which raises the chances of it being accepted.

3) Loan Amount

If the loan amount is small, banks and other lenders will frequently grant it. Aside from banks being willing to make the loan, the interest rate on the auto loan will be low.

 

4) Debt-to-Income Ratio

Banks examine an individual's debt-to-income ratio before approving a car loan. If the individual has a significant income-to-expense ratio, the chances of obtaining the loan granted at a lower interest rate grow.

 

Who is Eligible for a Canara Bank Car Loan?

The following are the eligibility requirements for obtaining a Canara Bank car loan-

  • Canara Bank's car loan is available to self-employed persons or professionals who work for reputable organizations.
  • When it comes to salaried personnel, the minimum annual gross compensation is Rs. 3 lakhs. However, after taking into account the car loan installment, the minimum in-hand wage should be at least Rs. 12,000, or 25% of the individual's in-hand salary.
  • Canara Bank does not accept applications from Hindu Undivided Families (HUFs).
  • According to the Income Tax Returns submitted, other persons must also have a minimum gross annual income of Rs. 3 lakhs. In the previous three years, the applicant's average monthly salary should have been at least Rs. 2.5 lakhs. Canara Bank accepts car loan applications from reputable businesses and organizations.

Documents Required for the Car Loan from the Bank

The following documentation must be supplied in order to obtain a car loan from Canara Bank-

  • A properly filled application form must be submitted.
  • Two current passport-size pictures of the applicant are required.
  • Salary stubs or payslips from the previous three months must be presented.
  • Form 16 or prior three years' income tax returns
  • A permanent Account Number (PAN) Card, Aadhaar Card, Voter ID, or Passport must be given as identification.
  • Address proof must be provided, such as a telephone bill, water bill, electricity bill, LPG bill, driving license, or Aadhaar card.
  • Bank statement over the previous six months.

How to Apply for the Car Loan from Canara Bank?

There are two simple ways to apply for a car loan from Canara Bank-

  • You can visit the nearest Canara Bank and a representative will walk you through the process of application.
  • The second method to this is visiting the official portal and doing it online.

Charges Associated with the Canara Bank Car Loan Schemes

  • Processing Fees - 0.25%
  • Pre-Closure Charges - Nil
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