FAQs ON CANARA VEHICLE LOANS (FOUR WHEELERS)

Who are eligible to avail Canara Vehicle Loans?

All individual borrowers / professionals / reputed firms / companies are eligible for availing loans. Which type of vehicles are financed under Canara Vehicle Loans (Cars) ? We finance all kinds of four wheelers including Jeeps, Vans - both brand new and pre-owned vehicles.

What is the maximum eligible amount under Canara Vehicle Loan Scheme for Cars? There is no upper limit on the loan amount for purchase of brand new cars. We finance upto 90% of the total value inclusive of invoice value, life tax, registration charges, insurance premium and other accessories.
However, for purchase of pre-owned vehicles, not older than 5 years, finance shall be least of the following: i. ii. iii. iv. 75% of the value of vehicle as appraised / assessed by an automobile engineer. 75% of the price agreed to between the seller and buyer. 75% of the original purchase price of the vehicle. Rs.6.00 lacs (after maintaining a minimum margin of 25%)

What is the margin amount required to borne by me? If you are buying a brand new car, you have to bring in only 10% of on-road-price If you are buying a pre-owned car, you have to bring in 25% of the project cost.

What are the documents required to be submitted?

For purchase of brand new vehicles (cars):

Original invoice photographs of the borrower and guarantor, salary certificates / income proof, Proof of address Proof of Identity Proof of employment (in case of salaried employees)

Post Dated cheques, if salary / operative account maintained with other Bank Pass sheet of Salary account for last six months (if salary account not maintained with our Bank) ITAO / ITR RTO forms

Additional documents for purchase of pre-owned vehicles (Cars): Agreement entered into with the vendor of the vehicle Valuation report by an automobile engineer, specifying the future life of vehicle Original invoice Copy of R C book / Tax card Copy of insurance Original B Extract issued by RTO authorities containing full details of the vehicle viz., Name of the owner, registration number, model, engine and chassis numbers, HP details, tax paid particulars, details of NOC given if any, insurance details RTO forms

What is the maximum repayment tenure permitted? Maximum repayment tenure permitted is 72 months; Very selectively considered upto 84 months. What are the lending rates? Our lending rates are floating and are linked to Base Rate. Loan will be cheaper by 25 bps if you opt for shorter repayment period (within 36 months) or offer to bear minimum 50% margin. Present card rates are as under: Name of variant Minimum 10% margin & repayment period more than 36 months Minimum 10% margin & repayment period 36 months or less Minimum 50% margin irrespective of repayment tenor (stretching upto maximum permissible tenure) How is the interest charged/calculated? Rate of Interest Base Rate* + 0.75% Base Rate* + 0.50% Base Rate* + 0.50% Rate of interest w.e.f. 04/02/2013 10.25* + 0.75 = 11.00% 10.25* + 0.50 = 10.75% 10.25* + 0.50 = 10.75%

*Base Rate is subject to periodical changes

Interest is calculated on daily reducing balance basis. Do I have to pay any additional charges? You have to pay nominal processing charges @ 0.1% on the loan amount Minimum Rs.250/-; and maximum Rs.500/How do I approach Canara Bank for a Car Loan? You can approach us in any of the following ways

Apply online by logging on to our website www.canarabank.com Call our Call Center 1800 425 0018 You can just walk into any of our branches How much time will it take for my loan to be approved? The loans are generally approved within 48 hours of submission of application. Who can be a personal guarantor? Personal guarantee can be given by any of your acquaintances, preferably our customers having adequate net worth. What security/collateral do I have to provide? No additional security/collateral needs to be provided, apart from the hypothecation of car against which the loan is granted. How do I repay the loan? If you have your salary account with us, you can give standing instructions for debiting your account. If you have your salary account with any other Bank, you can give post dated cheques and ECS mandate to your Bank. Can I prepay my loan? Yes. We do not charge any prepayment fee. Do I need to open an account with Canara Bank for availing and/ or servicing the loan? Though opening an operative account with us is not mandatory, we would appreciate opening an account with our Bank so that you can avail a variety of value added services. What are the stages involved in availing a loan? The stages involved are: Application; Processing; Documentation; Sanctioning; Disbursement Can I get a loan for purchasing a used car? Car loans are available for purchase of passenger cars - new as well as used.