Canara Bank Two Wheeler Loan: Benefits, Eligibility, Interest Rate and Documents

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Canara Bank Two Wheeler Loan

Canara Bank Two Wheeler Loan

Canara Bank Two Wheeler Loan: Canara Bank is one of the leading public sector banks in India that offers a wide range of financial products and services. Among these, the Canara Bank Two Wheeler Loan is a popular option for those looking to purchase a new or used two-wheeler. In this article, we will discuss the benefits, eligibility criteria, documents, Interest rate and application procedure for the Canara Bank Two Wheeler Loan.

Benefits of Canara Bank Two Wheeler Loan

  1. High loan amount: Canara Bank offers a loan amount of up to 90% of the on-road price of the two-wheeler, making it easier for buyers to purchase the vehicle of their choice.
  2. Attractive interest rates: The interest rates for Canara Bank Two Wheeler Loan are competitive and affordable, making it easier for buyers to repay the loan.
  3. Easy repayment options: Canara Bank provides flexible repayment options with the choice of tenure ranging from 12 months to 60 months. Buyers can choose a tenure that suits their financial situation.
  4. Minimal documentation: The documentation required for availing Canara Bank Two Wheeler Loan is minimal and hassle-free. This ensures that buyers can get the loan quickly without too much paperwork.
  5. Quick loan disbursal: Canara Bank ensures quick loan disbursal with minimal processing time, allowing buyers to purchase their two-wheeler without any delay.

Canara Bank Two Wheeler Loan Eligibility

  • Age: The minimum age of the applicant should be 18 years and the maximum age should be 75 years.
  • Income: The applicant should have a minimum income of Rs. 3 lakhs per annum.
  • Employment: The applicant should be either salaried or self-employed.
  • Credit score: The applicant should have a good credit score.

Application Procedure for Canara Bank Two-Wheeler Loan

  1. Visit the nearest Canara Bank branch or apply online on the official website of the bank.
  2. Fill in the application form with the necessary details and submit the required documents.
  3. The bank will verify the details and documents provided by the applicant.
  4. Upon approval, the loan amount will be disbursed to the applicant’s account.

Canara Bank Two Wheeler Loan Documents

To apply for a two-wheeler loan from Canara Bank, you will need to provide the following documents:

  1. Identity proof: This can be any government-issued identity proof such as an Aadhaar card, voter ID card, driving license, or passport.
  2. Address proof: Any valid address proof such as a utility bill, rental agreement, or passport can be submitted.
  3. Income proof: This is required to establish your repayment capacity. You can submit your latest salary slip, bank statement, or income tax returns as proof of income.
  4. Bank statements: Your bank statements for the last 6 months may be required to check your transaction history and repayment capacity.
  5. Proforma invoice: This document includes the details of the two-wheeler you plan to purchase, such as the make and model, price, and other relevant details.
  6. Form 16: If you are a salaried individual, you will need to provide your Form 16 as proof of income.
  7. Passport-size photographs: You will need to provide a few recent passport-size photographs for verification purposes.

Canara Bank Two Wheeler Loan Interest

Canara Bank offers two-wheeler loans at competitive interest rates that start at 7.50% per annum. The interest rate may vary depending on several factors such as the borrower’s credit score, loan amount, repayment tenure, and the type of two-wheeler being purchased.

For example, if you are purchasing a high-end bike, the interest rate may be slightly higher compared to a regular bike due to the higher loan amount. Similarly, if you have a good credit score and repayment history, you may be eligible for a lower interest rate.

In addition to the interest rate, Canara Bank may also charge processing fees and other charges such as late payment fees, prepayment charges, and documentation charges. These fees may vary depending on the loan amount and other factors.

Factors to Consider Before Availing of Canara Bank Two-Wheeler Loan

  1. Loan amount: Buyers should consider the loan amount they need and the on-road price of the two-wheeler they want to purchase. Canara Bank offers a loan amount of up to 90% of the on-road price of the two-wheeler.
  2. Interest rate: Buyers should compare the interest rates offered by different banks before choosing one. Canara Bank offers competitive and affordable interest rates.
  3. Repayment tenure: Buyers should choose a repayment tenure that suits their financial situation. Canara Bank provides flexible repayment options with the choice of tenure ranging from 12 months to 60 months.
  4. Processing fees: Buyers should consider the processing fees charged by the bank for availing the loan. Canara Bank charges a minimal processing fee for its Two Wheeler Loan.
  5. Prepayment and foreclosure charges: Buyers should also consider the prepayment and foreclosure charges before availing the loan. Canara Bank allows prepayment and foreclosure of the loan with minimal charges.
Canara Bank Two Wheeler Loan

FAQs

What is the two wheeler loan rate in Canara Bank?

As of April 2023, the interest rate on Canara Bank’s two-wheeler loans starts at 7.50% per annum. However, the exact rate may vary depending on the borrower’s credit score, loan amount, and repayment tenure.

What is the interest of 1 lakh loan in Canara Bank?

The interest rate on a 1 lakh loan from Canara Bank depends on various factors such as the borrower’s credit score, repayment capacity, and loan tenure. However, as of April 2023, Canara Bank offers 2 wheeler loans starting at an interest rate of 7.50% per annum.

What is the maximum interest on a two-wheeler loan?

The maximum interest rate on a two-wheeler loan can vary from lender to lender, but it is typically around 20-25% per annum. However, borrowers with a good credit score and financial history may be able to negotiate a lower interest rate.

Which Bank is best for 2 wheeler loan?

There are several banks and financial institutions offering 2 wheeler loans with competitive interest rates, some of the popular ones are HDFC Bank, State Bank of India, ICICI Bank, and Axis Bank. It’s recommended to compare the interest rates and terms of the loans before choosing a bank for a 2 wheeler loan.

Conclusion:

Canara Bank Two Wheeler Loan is a great option for those looking to purchase a new or used two-wheeler. With attractive interest rates, high loan amount, and flexible repayment options, the loan is designed to meet the diverse needs of customers. If you are eligible for the loan, you can easily apply for it through the bank’s website or by visiting the nearest branch.

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