With interest rates from 7.35% and a 0.25% processing fee, the Canara Bank car loan is one of the best options for borrowers seeking a cheap car loan. However, the lender only funds up to 90% of new car loans and 60% of used car loans (up to Rs. 15 lakhs), so ValueChampion recommends the Canara Bank car loan to borrowers who can cover the upfront costs of a car purchase.
|Summary of Canara Bank Car Loan|
|Car loan interest rates from 7.35%|
|0.05% interest rate concession for women|
|Low processing fees and extra charges|
|Long loan tenures available|
Table of Contents
What Makes Canara Bank Car Loans Stand Out to Borrowers
Canara Bank has one of the lowest car loan interest rates in India, making it a top option to consider if you seek to minimise your total cost of borrowing. However, the Canara car loan is not tailored to borrowers who require maximum funding or make an annual income less than Rs. 3 lakhs. Below, you can find the main features of the bank's car loan options.
|Canara Bank Car Loan||Features|
|Canara New Car Loan|
|Canara Used Car Loan|
Canara Bank Car Loan Interest Rates
Canara Bank charges one of the lowest interest rates among the lenders we analysed, ranking as the #2 lowest interest car loan for both new and used vehicles. Depending on your car loan eligibility, you can avail rates as low as 7.30% and up to 9.90%. As seen in the table below, borrowers with high CIBIL scores and women are eligible for preferential prices.
Canara Car Loan Interest Rates by Risk Grade
|Risk Grade||ROI For Women Borrowers||ROI For Other Borrowers|
Risk Grade refers to your credit score group as reported by the Credit Information Corporation (CIC). RIsk Grade 1 is assigned to borrowers with high credit scores. Click here for more information about how your car loan interest rate is determined.
Canara Bank Car Loan Eligibility Criteria
While Canara Bank has relatively standard eligibility criteria, their income requirement is slightly higher than other banks. Comparable to HDFC Bank, the lender requires an annual income of Rs. 3 lakhs, which rounds out to Rs. 25,000 per month. If you are seeking a lender with low income requirements, we recommend that you consider Axis Bank or Kotak Mahindra Prime Limited for your car financing needs.
Otherwise, Canara Bank's car loan details are similar to most other lenders. The bank offers a 7-year tenure on new car loans, and a 5-year tenure on used car loans. Additionally, second hand cars up to the age of 5 years are eligible for Canara Bank financing.
In terms of maximum funding, the Canara Bank car loan covers between 80% and 90% of a new car's valuation, and 60% of a used vehicle's valuation (with a maximum of Rs. 15 lakhs). If you are in need of more car financing or are unable to pay significant upfront costs of a car purchase, ValueChampion recommends that you consider HDFC Bank or Axis Bank for 100% ex-showroom or on-road financing.
Canara Bank Car Loan Processing Fee and Other Charges
Canara Bank charges a small processing fee of 0.25% of the loan amount, with a minimum of Rs. 1000 and Rs. 5000. In addition to this very low extra cost, borrowers can benefit from 2.00% prepayment penalty fee, which is comparable to other lenders who charge up to 6.00% of the outstanding balance.
For more information of Canara Bank car loan processing fees and other charges, please contact the bank.
Canara Bank Car Loan EMI Calculator
While Canara does not offer an EMI calculator designed specifically for car loans, you can still use their EMI calculator to estimate your monthly instalments. Click here to access the Canara Bank car loan calculator.
Canara Bank Car Loan EMI Repayment Schedule
Our team of financial analysts calculated an EMI repayment schedule for borrowers, as seen below.
|Stage of Loan Tenure||EMI||Interest Paid||Principal Paid||Outstanding Balance|
Canara Bank Car Loan: Apply
Canara Bank does not have an online car loan application process, therefore you will need to reach out to Canara Bank customer service to determine the best plan of action.
Canara Bank Car Loan Customer Care
If you have any queries about the Canara Bank car loan application process, contact Canara Bank customer care through any of the methods below.
- Canara Bank Toll Free Number: 1 800 425 0018 OR 1 800 103 0018
- Canara Bank Non-Toll Free Number (if calling outside of India): +91-80-22064232