Canara Bank



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|FAQs ON CANARA VEHICLE LOANS (FOUR WHEELERS) |

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|Who are eligible to avail Canara Vehicle Loans? |

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|All individual borrowers / professionals / reputed firms / companies are eligible for availing loans. |

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|Which type of vehicles are financed under Canara Vehicle Loans (Cars) ? |

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|We finance all kinds of four wheelers including Jeeps, Vans - both brand new and pre-owned vehicles. |

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|What is the maximum eligible amount under Canara Vehicle Loan Scheme for Cars? |

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|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: |

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

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

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

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|Rs.6.00 lacs (after maintaining a minimum margin of 25%) |

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|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. |

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|What are the documents required to be submitted? |

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|For purchase of brand new vehicles (cars): |

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|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 |

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|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? |

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|Maximum repayment tenure permitted is 72 months; Very selectively considered upto 84 months. |

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|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. |

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|Present card rates are as under: |

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|Name of variant |

|Rate of Interest |

|Rate of interest w.e.f. 04/02/2013 |

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|Minimum 10% margin & repayment period more than 36 months |

|Base Rate* + 0.75% |

|10.25* + 0.75 = 11.00% |

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|Minimum 10% margin & repayment period 36 months or less |

|Base Rate* + 0.50% |

|10.25* + 0.50 = 10.75% |

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|Minimum 50% margin irrespective of repayment tenor (stretching upto maximum permissible tenure) |

|Base Rate* + 0.50% |

|10.25* + 0.50 = 10.75% |

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|*Base Rate is subject to periodical changes |

|How is the interest charged/calculated? |

|Interest is calculated on daily reducing balance basis. |

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|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/- |

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|How do I approach Canara Bank for a Car Loan? |

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|You can approach us in any of the following ways |

|Apply online by logging on to our website – |

|Call our Call Center 1800 425 0018 |

|You can just walk into any of our branches |

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|How much time will it take for my loan to be approved? |

|The loans are generally approved within 48 hours of submission of application. |

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|Who can be a personal guarantor? |

|Personal guarantee can be given by any of your acquaintances, preferably our customers having adequate net worth. |

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|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. |

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|How do I repay the loan? |

|If you have your salary account with us, you can give standing instructions for debiting your account. |

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|If you have your salary account with any other Bank, you can give post dated cheques and ECS mandate to your Bank. |

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|Can I prepay my loan? |

|Yes. We do not charge any prepayment fee. |

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|Do I need to open an account with Canara Bank for availing and/ or servicing the loan? |

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|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. |

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|What are the stages involved in availing a loan? |

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|The stages involved are: |

|Application; Processing; Documentation; Sanctioning; Disbursement |

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|Can I get a loan for purchasing a used car? |

|Car loans are available for purchase of passenger cars - new as well as used. |

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