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Canara Bank Car Loan Interest Rates

Established in 1906, Canara Bank is a state-owned financial institution. The bank is proud of its extensive domestic network, which includes over 5000 branches throughout India. It is renowned for its customer-centric policies and corporate office in Bangalore, Karnataka. Canara Bank has a century of experience in the banking industry and has expanded rapidly all over the country. With offices in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and New York, the bank has increased its global presence.

Canara Bank provides a wide range of banking products and services to meet the needs of different societal groups. The car loan interest rate at Canara bank is one example. Here, we’ll talk about Canara bank car loan interest rate available.

Vehicle Loan TypeWomen BorrowersOther Borrowers
Four Wheeler LoansRanges from 7.30% to 7.45%Ranges from 7.35% to 7.50%
Two Wheeler LoansRanges from 10% to 10.15%Ranges from 10.05% to 10.25%
Fees and charges of Canara Bank Car Loan 
Processing FeeProcessing fees are calculated as 0.25 percent of the total loan amount. 
FinancingDepending on the value of the vehicle, car loans are available for 80%, 85%, and 90% of the on-road price.
Foreclosure chargesIf the loan is closed before it matures, there are no foreclosure fees.

You can also use the Canara bank car loan interest rate calculator, you can calculate interest rates in very less time. The Canara bank car loan interest rate calculator is available on the website of the Canara bank. 

Also Read: Student loan calculator: A Complete Guide

Factors Affecting car loan interest rate at Canara bank, Eligibility & Interest Rates

  • Pay attention to your credit score: Applicants who have a good credit score have better chances of getting approved for a car loan and better interest rates. The lender will believe that the applicant can afford to repay the loan amount in full and on time if the credit score is 750 or higher. 
  • Choose a smaller loan amount: Banks frequently accept car loans with low values. This gives the banks the confidence to lend money and do so at very low-interest rates.
  • Minimum Length: People who choose a shorter loan term can get a car loan at a lower interest rate. Therefore, when taking out a car loan, people should choose a shorter loan term. As a result, there is a greater chance that the loan will be approved quickly because the borrowers will pay it back more quickly.
  • Low debt-to-income ratio: Before approving a loan, banks frequently check a borrower’s debt-to-income ratio. An individual has a greater chance of receiving a loan with a lower interest rate if there is a significant balance between income and expenses.

How should I pick a car loan?

You can consider the following guidelines when selecting a car loan:

  • If you have made the decision to buy a car and need financing help, you can start by evaluating your current financial situation and creating a rough budget for repaying the car loan.
  • You might also want to see if you qualify for a car loan. 
  • A reputable credit score provider should be consulted to check your credit score. Most banks and lending institutions consider this to be a crucial factor when determining a borrower’s eligibility and risk level for a car loan.
  • If your finances are in order, you can research different car models that fall within your price range and work with your preferred bank to finalize the loan terms (loan term, EMIs, interest rate, down payment, etc.).

The process of purchasing a car necessitates extensive preparation and planning, from setting up the finances to selecting the ideal model. The first thing that comes to mind when you decide to purchase a car is the lending institution that can be contacted to apply for a loan. This is due to the possibility of financial problems if you pay the full amount of the vehicle in a single payment. Therefore, obtaining a loan with a higher amount at a lower interest rate, with few processing fees and related costs, should be the goal. The entire process of purchasing a car is made simple for you by Canara Bank, who also offers it at competitive interest rates.

Also Read: A Comprehensive Guide on short term loans

Canara bank car loan interest rate – Features and Benefits

The following are the main characteristics and advantages of the car loan from Canara Bank:

  • low rates of interest.
  • There are no extra fees or charges.
  • low processing costs.
  • The loan is available for a maximum of 84 months with a flexible monthly payment schedule as per the customer’s convenience.
  • Both new and used cars are eligible for car loans.
  • The loan is accessible for all types of vehicles and is not based on the make or model.
  • The maximum loan term for used cars is 60 months. 
  • In the event that borrowers choose to pay off their loans before the maturity date, the bank does not charge any foreclosure fees.
  • A person can easily buy a car because the bank offers financing that covers the majority of the car’s value.

Eligibility requirements – Canara bank car loan interest rate

The eligibility requirements to obtain a car loan from Canara Bank are listed below:

  • Those who are self-employed or professionals employed by reputable companies are eligible to apply for a car loan from Canara Bank.
  • Canara Bank does not accept applications for car loans from Hindu Undivided Families (HUFs).
  • Canara Bank accepts applications from reputable businesses and organizations for car loans.
  • The minimum annual gross salary requirement for salaried employees is Rs. 3 lakhs. However, the minimum in-hand pay should be at least Rs. 12,000, or 25% of the person’s in-hand pay, after taking the car loan instalment into account.
  • According to Income Tax Returns filed, additional people must have a minimum gross annual income of Rs. 3 lakh. The applicant’s average annual income over the previous three years should have been at least Rs. 2.5 lakhs.


Q. What kinds of vehicles are eligible for financing through a Canara Bank car loan?

Ans. With the help of a Canara Vehicle Loan, you can finance various kinds of four-wheelers, including cars, vans, and jeeps. The car may be brand-new or previously owned.

Q. Is the applicant’s other income taken into account when determining their eligibility for a Canara Bank car loan?

Ans. When determining an applicant’s income eligibility, the income of their spouse, income from investments, or income from rentals are taken into account. However, the bank only takes into account such income with supporting documentation.

3. How is the interest on a car loan calculated by Canara Bank?

Ans. On a daily reducing balance basis, interest on a car loan is calculated.

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