Canara Bank Car Loan

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

Documents Required

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.

Contributions

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.

Repayment schedule

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.

FAQs on Canara Bank Car Lon

1. 1. What are the different vehicles that can be financed under the Canara Bank car loan?

Various types of four-wheelers such as vans and jeeps can be financed under Canara Vehicle Loan. The vehicle can be pre-owned or brand new.

1. 1. Is there any other income that is considered when determining the income eligibility?

The income of the spouse, income from any investments, or rental income may also be considered when determining the income eligibility. However, documentary evidence must be submitted for it to be considered.

1. 1. How is the calculation of interest done?

The calculation of interest is done on a daily reducing balance basis.

1. 1. Is it possible for an individual to prepay his/her loan?

Yes, it is possible for an individual to prepay the loan. No prepayment fees will also be levied.

1. 1. What is the procedure to approach the bank in case the individual wants to avail a car loan?

Individuals can get details on the car loan by one of the below-mentioned ways:

1. • Visiting the Canara Bank website.
   • Calling the Canara Bank call centre (1800 425 0018).
   • Giving a missed call to 09268592685. Individuals will receive an SMS about the details of the car loan.
   • Individuals can also visit any Canara Bank branch to get details on the car loan.