Canara Bank Car Loan 2026
Canara Bank’s repo-linked Canara Vehicle scheme finances new and used cars with no upper loan limit and no prepayment penalty. Interest rate 7.45% – 15.00%, loan No upper loan limit; up to 90% of price, tenure Up to 84 months (7 years).
Rates as of 12 Dec 2025 (official range) · Checked 27 September 2026Canara Bank Car Loan at a glance
- Lowest official starting rate we track
- No prepayment penalty
- Processing fee capped at ₹5,000
- Wide official range covers all vehicles — new-car band per aggregators starts at 8.45%
- Margin rises to 20% above ₹25 lakh
Canara Bank car loan interest rate & charges
| Feature | Canara Bank |
|---|---|
| Interest rate | 7.45% – 15.00% |
| Rate details | Official Canara Vehicle scheme range 7.45% – 15.00% (effective 12 Dec 2025), which covers all vehicle types; RLLR 8.00%. BankBazaar lists new-car rates of 8.45% – 11.90%. Women borrowers get 0.05% lower (aggregator). |
| Processing fee | 0.25% of loan (min ₹1,000, max ₹5,000) + GST; 50% waiver from 1 Jul to 30 Sep 2026 |
| Loan amount | No upper loan limit; up to 90% of price |
| Tenure | Up to 84 months (7 years) |
| Prepayment / foreclosure | No prepayment penalty |
| Margin | 10% up to ₹10 lakh; 10% – 15% for ₹10 – 25 lakh; 20% above ₹25 lakh |
| Minimum income | ₹3 lakh gross a year (salaried or self-employed) |
| Benchmark | RLLR 8.00% (repo-linked) |
Special schemes & features
Separate lower rates for electric vehicles
0.05% concession (aggregator)
50% processing-fee waiver till 30 Sep 2026
Source: www.canarabank.bank.in, 12 Dec 2025 (official range). Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.
EMI at Canara Bank’s rates
| Loan amount | EMI @ 7.45% | EMI @ 11.23% | EMI @ 15.00% |
|---|---|---|---|
| ₹5,00,000 | ₹10,007 | ₹10,929 | ₹11,895 |
| ₹8,00,000 | ₹16,011 | ₹17,486 | ₹19,032 |
| ₹12,00,000 | ₹24,017 | ₹26,229 | ₹28,548 |
Tenure 5 years, reducing-balance method. Total interest on ₹8,00,000 at 7.45%: ₹1,60,681.
Canara Bank car loan EMI calculator
Eligibility
- Salaried, self-employed, professionals and business owners
- Minimum gross income ₹3 lakh a year
- Good credit score for the lowest spread over RLLR
Documents required
- Application form with photographs
- KYC: PAN (mandatory) and Aadhaar / passport / voter ID / driving licence
- Income proof — salaried: last 3 salary slips and Form 16; self-employed: 2 years’ ITR with computation, P&L and balance sheet
- Bank statements for the last 6 months
- Proforma invoice / quotation from the dealer showing on-road price
- Employment or business continuity proof
- After purchase: RC copy with hypothecation, insurance policy naming the bank, and final invoice
How to apply for Canara Bank Car Loan
- Pick the car and get a quoteAsk the dealer for an itemised on-road quotation — ex-showroom, road tax, registration, insurance, TCS and accessories.
- Compare offersCheck rate, rate type (fixed / floating), processing fee, foreclosure charges and the APR in each lender’s Key Facts Statement.
- ApplyOnline, through the bank app, at a branch or at the dealership; many banks give pre-approved offers to existing customers.
- SanctionThe bank checks your credit report, income and the car’s price, then issues a sanction letter and KFS.
- Sign and pay marginSign the loan agreement, set up NACH/e-mandate for EMIs and pay your down payment to the dealer.
- Disbursal and registrationThe bank pays the dealer directly; the RTO registers the car with the bank’s hypothecation on the RC. Submit the RC and insurance copies to the bank.
Canara Bank vs other lenders
| Lender | Rate | Processing fee | Tenure | EMI on ₹8,00,000 |
|---|---|---|---|---|
| Canara Bank Car Loan | 7.45% – 15.00% | 0.25% of loan (min ₹1,000, max ₹5,000) + GST; 50% waiver from 1 Jul to 30 Sep 2026 | Up to 84 months (7 years) | ₹16,011 |
| Bank of Baroda Car Loan | 7.60% – 11.30% | Up to ₹10 lakh: ₹1,500 + GST; above ₹10 lakh: ₹2,000 + GST; ₹500 + GST for government / PSU employees | Up to 84 months (7 years) | ₹16,068 |
| PNB Car Loan | 7.60% – 9.70% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 84 EMIs (7 years) | ₹16,068 |
| Union Bank of India Car Loan | 7.60% – 10.00% | ₹1,000 + GST (aggregator); often waived for electric vehicles | Up to 84 months (7 years) | ₹16,068 |
| HDFC Bank Car Loan | 8.15% onwards | Up to 0.5% of loan (min ₹3,500, max ₹8,000) per BankBazaar; ClearTax shows 1% (min ₹3,500, max ₹9,000) — plus GST | 12 – 84 months | ₹16,279 |
| ICICI Bank Car Loan | 8.40% onwards | Up to ₹8,500 + GST | 12 – 84 months | ₹16,375 |
| SBI Car Loan | 8.40% – 9.35% | Up to ₹5 lakh: ₹500 (salaried) / ₹750 (others); ₹5 – 10 lakh: ₹1,000 / ₹1,250; above ₹10 lakh: ₹1,500 / ₹2,000 — all + GST | Up to 7 years (Green Car Loan up to 8 years) | ₹16,375 |
| Axis Bank Car Loan | 8.95% – 11.75% | ₹3,500 – ₹5,500 + GST | 12 – 96 months (up to 8 years) | ₹16,587 |
Frequently asked questions
What is the Canara Bank Car Loan car loan interest rate?
Canara Bank car loan rates start at 7.45% and go up to 15.00% p.a. (as of 12 Dec 2025 (official range)). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹8,00,000 from Canara Bank?
At 7.45% for 5 years the EMI is about ₹16,011, with total interest of ₹1,60,681.
What is the processing fee?
Canara Bank: 0.25% of loan (min ₹1,000, max ₹5,000) + GST; 50% waiver from 1 Jul to 30 Sep 2026. GST at 18% applies on fees.
What is the maximum tenure?
Canara Bank: Up to 84 months (7 years).
Can I prepay or foreclose the loan?
Canara Bank: No prepayment penalty.
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Canara Bank Car Loan. Terms change — confirm with the lender.