Canara Bank Car Loan Fees and Charges
The eligibility criteria to avail the Canara Vehicle Loan are mentioned below:
- Individuals who are self-employed or professionals, or work for a reputed organisation will be eligible to avail a car loan.
- Hindu Undivided Families (HUFs) are not eligible to avail a car loan with Canara Bank.
- Reputed firms and companies are also eligible to avail a car loan with Canara Bank.
- In the case of salaried employees, the minimum gross salary that they make in a year should not be less than Rs.3 lakh. However, the minimum take-home salary after the reduction of the car loan instalment should not be less than Rs.12,000 or 25% of the individual’s take-home salary.
- Other individuals must also make a minimum gross yearly income of at least Rs.3 lakh as per the latest Income Tax Returns. However, the average annual income of the individual must not be less than Rs.2.5 lakh over the last 3 years.
Canara Bank EMI Calculator
Factors Affecting Canara Bank Car Loan Eligibility
Some of the ways that individuals can increase their eligibility for a Canara Vehicle Loan are mentioned below:
- Maintain a good credit score: Individuals who have a good credit score have more chances of getting their car loan approved. Having a credit score of 750 and above will provide the lender with an impression that the individual will be able to pay the loan amount on time.
- Availing a lower loan amount: Banks and other lenders usually approve the loan in case the loan amount is low. Apart from banks being comfortable in providing the loan, the car loan interest rate, that will be levied is also low.
- Shorter duration: Individuals who choose a shorter repayment tenure can avail the loan at lower interest rates. Therefore, it is recommended that individuals opt for shorter tenure when opting for a car loan. The chances of getting the loan approved also increases since individuals will have to pay to close the loan quicker.
- Low debt-to-income ratio: Before approving the car loan, banks check the individual’s debt-to-income ratio. In case the individual has a significant balance between their income and expenses, the chances of getting the loan approved at lower interest rates increases.
Comparison of Car Loan interest rates of top banks with the lowest EMI for 7 years
The documents that must be submitted to avail a car loan with Canara Bank are mentioned below:
- The completely filled application form must be submitted.
- 2 passport-size photographs of the applicant.
- Last 3-months' salary slips or payslips must be submitted.
- Address proof such as telephone bill, water bill, electricity bill, LPG bill, Driving License, or Aadhaar card must be submitted.
- Last 6 months bank statement.
- Income Tax Returns for the last 3 years or Form 16 must be submitted.
- ID proof such as Permanent Account Number (PAN) Card, Aadhaar Card, Voter ID, or Passport must be submitted.
Depending on the cost of the car, the contributions made by the bank and the individual will vary. Given in the table below are the contributions that will be made by the bank and the individual depending on the price of the car:
Canara Bank provided 80%, 85%, or 90% of the on-road price of the car depending on the value of the car. In the case of new vehicles, the loan that is provided on the on-road of the car is inclusive of insurance premium, registration charges, life tax, invoice value, and any other accessories.
Used Car Loan
Canara Bank provides car loans for used cars under the below-mentioned conditions:
- The car must not be older than 5 years.
- The tenure of the loan can be a maximum of 60 months.
- Up to 75% of the car’s value or the agreed price can be financed. The car value must be accessed by an automobile engineer and can be a maximum of Rs.15 lakh, whichever is lower.
Rate of interest
The rate of interest that is charged to avail a car loan with Canara Bank is mentioned in the table below:
Canara Bank provides a convenient repayment schedule for individuals who have availed a car loan. In the case of new cars, the loan tenure can be up to 84 months, but for used cars, the tenure of the loan can be up to 60 months.