Canara Bank Hikes Auto Loan Rates by 0.5%

Canara Bank, the country's largest private sector lender, on Thursday, announced to initiate a hike of up to 0.5 per cent in its auto loan rates. In addition, the bank will discontinue its 8.25% home loan scheme from March 1. HDFC too has discontinued its 8.25% home loan offer.

"Auto loans rack rates have been raised by 0.25-0.5 per cent depending on segment and tenor with effect from March 5", an Canara Bank spokesperson revealed.

Similarly, Kotak Mahindra Bank has also reported to increase its interest rates on home loans by 50 bps, while Kotak Mahindra Prime has raised auto loans rates by 50 bps from tomorrow.

Kotak Mahindra Bank's prime spokesperson said, "Lending rates reflect the increase in borrowing cost observed over the last 6-8 weeks. While we had absorbed the increase in cost for the month of February, it now needs to be passed on".

Also, the RBI has hiked the cash reserve ratio or the amount banks have to keep with RBI for zero interest by 0.75 per cent to 5.75 per cent, absorbing Rs 3,600-crore from the system, aimed to absorb excess liquidity from the system.

Currently on home-loans, Axis is extending home-loans for up to Rs 30-lakh at 8.75 per cent, loans between Rs 30-lakh to Rs 50-lakh at 9 per cent and those above Rs 50-lakh, at 9.50 per cent.

Canara Bank Education Loans Are Available For these Course

Canara Bank Education Loans are available for Graduation / Post graduation / Diploma / Computer education in any recognized State / Central Government / University, professional courses including Engineering / Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., Canara Bank Education Loans are also available to the courses conducted by IIM, IISC, XLRI, NIFT etc,

Incase the course is pursued abroad, the institute should be recognized by the competent local aviation / shipping authority. For studies abroad, Canara Bank Education Loans will be made available only for Graduation and Post Graduation Courses offered by Reputed Universities and not for diplomas.

Canara Bank Home Loans

Canara Bank Home Loans are available for the purpose of construction or acquisition of houses or flats. Canara Bank Home Loans are also available for the renovation or repair of existent houses and flats. Customers can also buy plots with the help of Canara bank housing loans and access it to a whole lot of other related uses.

The lower ceiling of Canara Bank Home Loans is Rs. 1 lakh. The set upper limit of the loan for repair and renovation work is Rs. 10 Lakhs. Housing loans, which are lower than Rs. 1 lakh are also available from Canara Bankunder some schemes.

Canara Bank Car Laons

The car loans by the Canara Bank are given for the purchase of the new vehicle, which are to be for personal use only. Canara Bank also offers loans for the purchase of pre-owned vehicle, which is not more than 3 years old.

To get the benefit of the Canara Bank car loan, the person should be a salaried person, with the gross income of Rs. 10,000 p.m. Agriculturalists and professional self employed and business men are also eligible to get loans from Canara Bank. It must be kept in mind that the car loan should be fully repaid before the individual turns 70 years of age.

The Canara Bank car loan amount that is offered to the individual does not exceed 2 times of the Net Annual Income or Net Annual Salary.