FAQs Car Loan.docx

7/27/2019 FAQs Car Loan.docx

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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 availingloans.

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-ownedvehicles.

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. 75% of the value of vehicle as appraised / assessed by an automobile engineer.

ii. 75% of the price agreed to between the seller and buyer.

iii. 75% of the original purchase price of the vehicle.

iv. 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)


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Post Dated cheques, if salary / operative account maintainedwith other Bank

Pass sheet of Salary account for last six months (if salaryaccount 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) oroffer to bear minimum 50% margin.

Present card rates are as under:

Name of variant Rate of Interest Rate of interest w.e.f.04/02/2013

Minimum 10% margin & repaymentperiod more than 36 months

Base Rate* + 0.75% 10.25* + 0.75 = 11.00%

Minimum 10% margin & repaymentperiod 36 months or less

Base Rate* + 0.50% 10.25* + 0.50 = 10.75%

Minimum 50% margin irrespective ofrepayment tenor (stretching uptomaximum permissible tenure)

Base Rate* + 0.50% 10.25* + 0.50 = 10.75%

*Base Rate is subject to periodical changesHow is the interest charged/calculated?


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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 0018You 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 customershaving adequate net worth.

What security/collateral do I have to provide?No additional security/collateral needs to be provided, apart from the hypothecation of caragainst 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 youraccount.

If you have your salary account with any other Bank, you can give post dated cheques andECS 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 theloan?

Though opening an operative account with us is not mandatory, we would appreciateopening 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.
http://www.canarabank.com/http://www.canarabank.com/http://www.canarabank.com/http://www.canarabank.com/


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FAQs Car Loan.docx

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