A car loan is a type of personal loan that allows you to buy a car by paying the total price in monthly installments rather than paying the entire amount all at once. The bank or lender will pay the full value of your vehicle, and you will be required to repay the bank/lender in monthly installments or EMIs with an interest fee. Normally, loans come with some form of security; however, in this case, the car itself serves as collateral. This represents that if you fail to pay off the entire debt to the bank, the bank will repossess your car to pay off the debt.
It is natural to be confused by the number of lending options available after you have decided to buy a car and require financing assistance. Canara Bank is one of the country's largest public sector banks, owned by the Indian Government. Canara Bank has a dedicated car loan portal that gives you easy access to EMI options, an EMI calculator, a quick quote, various car offers, and other related information. It provides a car loan with an attractive interest rate ranging from 8.70% to 9.35%.
Eligibility
The following information will let you know about a quick overview of Canara Bank's Car Loan Eligibility Criteria.
AGE - 21 years.
EMPLOYMENT TYPE -
Individuals/Self Employed/Reputed Firms/Govt.
Employee/Professionals/Corporates.
HUF is not eligible.
MINIMUM INCOME - Salary of INR 3 lacs per annum.
MAXIMUM LOAN AMOUNT - Upto 90% of the on-road price of the car.
TENURE -
Maximum 84 months for a new car.
Maximum 60 months for a used car.
Documents Required
Proof of Residence.
Identification with a photograph and proof of age.
Signed application form with photograph.
Bank statement from the previous six months.
Salaried applicants must submit salary slips from the previous three months.
Self-employed applicants must submit income tax returns from the previous three years, as well as an audited balance sheet and profit and loss statement.
Interest Rate
Canara Bank provides a car loan with a low-interest rate. If you are a woman purchasing a car with a Canara Bank Car Loan and the vehicle is registered in your name, you are eligible for a special interest rate ranging from 8.90 percent to 9.45 percent. Other borrowers can expect interest rates ranging from 8.95 percent to 9.55 percent. These interest rates are for a one-year MCLR.
Fees
LOAN PROCESSING CHARGES - 0.25% on the loan amount with a minimum of INR 1000/- and a maximum of INR 5000/-.
DOCUMENTATION CHARGES - INR 250 to INR 1000/-.
EMI LATE PAYMENT PENALTY - 2-3%.
INSPECTION CHARGES ( in case of a second-hand car) - INR 200 to INR 600/-.
Canara Bank does not levy any foreclosure fees. The loan can be repaid before the loan's term expires.
Conclusion
There is no maximum limit for the Car Loan offered by Canara Bank Finance, which is available up to 90% of the car value for loan amounts up to INR INR 10 lakhs, 85% of the car value for loan amounts between INR 10 and 25 lakhs, and up to 80% for loan amounts above INR 25 lakhs. It is on the basis of the car's on-road price, which includes the invoice value, tax, registration fees, and insurance.
Canara Bank car loans are available for all types of vehicles, regardless of model or make. You can get a loan for a second car if you have no outstanding debts from previous loans. Vehicles that are less than a month old will be eligible for financing through the new car loan option.
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