Canara Bank Car Loan Fees and Charges
|Processing Fee||0.25% of the loan amount that is being availed will be charged as a processing fee. However, the processing fee can be a minimum of Rs.1,000 and a maximum of Rs.5,000.|
|Financing||Depending on the price of the car, 80%, 85%, and 90% of the on-road price of the car can be availed as a loan.|
|Foreclosure charges||No foreclosure charges are levied in case the loan is closed before maturity.|
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.
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
|Name of the Bank||Rate of interest (p.a.)||Amount (p.a.)|
|Canara Bank||8.80% – 9.45%||Rs.1,599|
|Central Bank of India||7.05%||Rs.1,512|
|State Bank of India||9.15% – 12.40%||Rs.1,617|
|Axis Bank||9.25% onwards||Rs.1,622|
|YES Bank||9.75% onwards||Rs.1,647|
|Punjab National Bank||8.90% – 9.35%||Rs.1,604|
|ICICI Bank||9.30% – 12.85%||Rs.1,624|
|HDFC Bank||10.35% to 11.10%||Rs.1,642|
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.