Canara Bank Car Loan Interest Rate 2024

Canara Bank Car Loan Interest Rate

Canara Bank is a public sector bank that offers a wide range of financial products and services, including car loans. A car loan is a type of secured loan that helps individuals purchase their dream car without having to pay the entire amount upfront. Canara Bank offers attractive interest rates and flexible repayment options on its car loans, making it an ideal choice for many individuals.

Characteristics of the Canara Bank Car Loan Schemes

Canara Bank offers two types of car loan schemes - New Car Loans and Used Car Loans. The salient features and characteristics of these schemes are as follows:

New Car Loan:

• The loan can be availed by individuals, partnership firms, public and private limited companies, and HUFs.

• The loan amount can go up to 90% of the ex-showroom price of the car, subject to a maximum of Rs. 25 lakhs.

• The loan repayment tenure can go up to 7 years.

• The interest rate is linked to the Canara Bank Base Rate (CBBR) and is currently 7.25% per annum.

• No processing fee is charged for the loan.

Used Car Loan:

• The loan can be availed by individuals, partnership firms, public and private limited companies, and HUFs.

• The loan amount can go up to 75% of the car's value, subject to a maximum of Rs. 10 lakhs.

• The loan repayment tenure can go up to 5 years.

• The interest rate is linked to the Canara Bank Base Rate (CBBR) and is currently 8.25% per annum.

• A processing fee of 0.25% of the loan amount, subject to a maximum of Rs. 5000, is charged for the loan.

Canara Bank Car Loan Rate of Interest 2024

The interest rates for Canara Bank car loans are subject to change based on various market factors. As of 2024, the minimum and maximum interest rates for Canara Bank car loans are as follows:

New Car Loan:

• Minimum interest rate: 7.25% per annum

• Maximum interest rate: 10.25% per annum

Used Car Loan:

• Minimum interest rate: 8.25% per annum

• Maximum interest rate: 11.25% per annum

In addition to the interest rates, Canara Bank also charges a processing fee for its car loans. As mentioned earlier, the processing fee for the new car loan is zero, while it is 0.25% of the loan amount for the used car loan, subject to a maximum of Rs. 5000.

Canara Bank Car Loan Interest Rate based on CIBIL Score

Your Credit Information Bureau (India) Limited (CIBIL) score plays a significant role in determining the interest rate you get on your Canara Bank car loan. CIBIL is India's leading credit information company that maintains records of credit-related activities of individuals and companies.

A CIBIL score is a three-digit number that ranges from 300 to 900, with a higher score indicating a better credit history. Canara Bank considers the CIBIL score of an individual before approving their car loan application.

The minimum CIBIL score required for a Canara Bank car loan is 750. If you have a CIBIL score between 750 and 799, you can get an interest rate of 7.25% per annum for a new car loan and 8.25% for a used car loan. If you have a good credit score, you can expect to receive the best interest rates on a Canara Bank car loan. The interest rate on a car loan is also impacted by several other factors, including the loan amount, the repayment tenure, and the type of car you plan to purchase. Additionally, the bank may also charge processing fees and other charges, which can increase the overall cost of borrowing.

Factors that Change the Canara Bank Car Loan Interest

Several factors can impact the interest rates on a Canara Bank car loan. One of the most critical factors is your credit score, which reflects your creditworthiness and your ability to repay the loan. A higher credit score usually leads to lower interest rates, while a lower credit score can result in higher rates.

Another factor that can impact the interest rates on a car loan is the loan amount. Generally, lenders offer lower interest rates for larger loan amounts as they perceive them as a lower risk due to the higher value of the collateral. The repayment tenure also plays a crucial role in determining the interest rates. Generally, longer repayment tenures lead to higher interest rates, as the overall cost of borrowing increases with time.

The type of car you plan to purchase can also impact the interest rate. Canara Bank offers different interest rates for new and used cars. New cars are usually perceived as lower risk and are offered lower interest rates than used cars. Additionally, the make and model of the car can also impact the interest rate, with more expensive cars attracting higher interest rates.

Who is Eligible for a Canara Bank Car Loan?

To be eligible for a Canara Bank car loan, you must be an Indian resident and meet the bank's age and income requirements. The minimum age requirement is 18 years, and the maximum age requirement is 75 years. You must also have a stable source of income and meet the bank's minimum income requirements.

The eligibility criteria for a Canara Bank car loan may vary depending on the type of car you plan to purchase, the loan amount, and other factors. It is advisable to check with the bank or visit their website to learn more about the eligibility criteria for their car loan schemes.

How to Apply for the Canara Bank Car Loan?

Applying for a Canara Bank car loan is a straightforward process. You can apply for a car loan either online or offline. To apply online, visit the bank's website and navigate to the car loan section. Fill in the necessary details, including your personal and financial information, and submit the application.

To apply offline, visit your nearest Canara Bank branch and meet with a loan officer. They will guide you through the application process and help you fill in the necessary forms. You will need to provide supporting documents, such as identity proof, address proof, income proof, and other documents as required by the bank.

How to Negotiate for the Best Car Loan Interest Rates with Canara Bank?

If you want to negotiate for the best car loan interest rates with Canara Bank, you must adequately prepare yourself. Start by researching the prevailing interest rates in the market and compare them with the rates offered by Canara Bank. This will give you a good idea of the current market rates and help you negotiate better.

You should also work on improving your credit score, as a higher score can help you negotiate lower interest rates. Additionally, consider applying for a larger loan amount or opting for a shorter repayment tenure, as these factors can also impact the interest rates.

If you want to get the best possible interest rate on your Canara Bank car loan, there are a few things you can do:

• Research prevailing market interest rates for car loans and compare them with Canara Bank's rates.

• Work on improving your credit score to negotiate for lower interest rates.

• Consider applying for a larger loan amount or shorter repayment tenure.

• Apply for car loans during festive seasons or special offer periods.

• Compare Canara Bank's interest rates with other banks in the market.

• Consider taking a co-applicant or guarantor with a good credit score.